Introduction
One of the most important things that you will know about declined payment is that it causes a lot of intricacies (complexities) for the people involved. The person suddenly wonders what went wrong with their debit card or account, while the business is not sure whether the transaction can be finished or not. Besides all of that, there are no type of payment which is resistant to decline. It can happen when the customer brings their items to shop till when they click on check out on the business website or when some issue arises with the recurring payment set-up of the customer. Also, many times the customer faces with mtot disc bankcard, which means fee for payment processing. Besides all of that, a card decline can happen for distinct reason and can lead to a sale that is being lost. Averting them requires knowing how the credit card transactions are authorized & what can cause decline.
Decline Codes by Payment Processor
Now, it is the payment processor which provides decline codes that shows their reason for denying the transaction. Moreover, a business should learn to recognize & know the codes in order to give response successfully to a denied transaction and possibly save the sale. Moreover, card authorization can be called as an approval process which checks or sees if a card holder has enough funds to cover the purchase which they are attempting to create. It happens behind the scenes when the card transaction is processed. Besides all of that, for an in-person transaction, a customer will swipe, insert or tap the card into a card reader for making an online purchase, they will enter their payment data when they will be asked.
Acquiring Bank & Decline Code
Besides all of that, the information for that transaction is given from the businesses terminal to its acquirer which is also known as acquiring bank, the fiscal institution that represents the business. Moreover, the acquirer directs the transaction to right card network and makes sure that the funds are deposited in the right account. The acquirer will then submit a request to the card issuer (also known as the issuing bank), the financial institution that issued the payment card to the card-holder. Next, the issuing bank will then examine the card holders account and find out whether there is good enough funds or available credit to finish the transaction. Next, is the decline code which is mostly a 2-digit number error code like decline 05 which indicates why a transaction has been declined. While the code can come from a number of sources, it most of the time comes from the issuing bank, credit networks or payment processor.
