What are the most common reasons for credit card declines?

According to all surveys, the rejection rate of cards is 5-10 %. In the case of periodic payments, such as regular purchases, installment payments, and monthly invoices, this indicator tends to be higher, and in the case of mass purchase, it will be even higher.

Of course, these are not just bad announcements. The refusal to use credit cards has a merit for merchants. However, the profit lost by refusal, advertising expenses for creating a new sales opportunity, and management costs to pursue overdue payments will be incurred. Needless to say, 44%of the buyers refuse to purchase from the member stores facing the refusal.

What is credit card decline?

Credit card refusal is when credit card payment is not approved or accepted. There are some evidence that the buyer's card may not work: the expiration of the card, which has a very large amount of money, and the issued bank is actually a space for incredible energy He believes that he holds.

The first step to increase the success rate of card payment is to use card payments. In this notebook, we look at some of the main reasons that card payments may not be successful, and we can basically solve one of them and provide a specific number of conclusions. I will do it.

Types of credit card declines

There are two causes of card payments: "sweet refusal" and "strict refusal", which is led by the nobles. The difference is explained below.

• Soft and anomal y-Use r-related tasks, technical tasks, or suspected fraud occurs when issuing banks refuse transactions. Strict rejection is considered to be the final, and there is no possibility that it will be accepted for the second time, but soft failures are considered temporary, and there is no possibility that they will be accepted for the second time.
• Strict refusal of MI T-They will happen if the buyer bank refuses to lose money, theft, or the same reason, with a high possibility of fraud, low value of a cheap loan. There is no way to continue the difference from Mescodial refusal, which does not count a way to request another payment method.

Common credit card decline codes

The following is a general code and a list of comments to refuse remittance from a credit card:

• Code 0 5-Service is not allowed: The issued bank refused the card for unknown reasons.
• Code 1 4-Card number mistake: During online trading, it is displayed when the introduced card number does not match the actual number of the credit card.
• Code 4 1-Lost cards, arrests: Card owners announce the loss and freeze all transactions to prevent fraud.
• Code 4 3-Kidnapped card, arrest: Card owner informs the publisher that the card was actually stolen, and will be rejected in the future.
• Code 51 "Low Balance (insufficient balance)": There is no balance in the card holder account to cover the transaction.
• Code 5 4-expired card: It is no longer available for payment because the expiration date of the credit card has expired.
• Code 6 3-invalid CVC: Security code (CVC) entered during transactions is considered fraudulent.
• Code 6 5-Beyond the credit limit: The card owner exceeds the approved credit limit, so it is necessary to add an individual balance to continue the transaction.

Top reasons for credit card declines

Lack of funds or hold on the card

This seems to be quite certain, but if you have almost no balance in the buyer's bank account or exceed your personal credit limit, you will not be able to use money for remittance. Sellers may not be able to control their customers, but there are ways to make them more control.

Conclusion: Lost notification and other payment methods

Communication speed is the key. If the buyer sends a message in real time while still in the purchase mode, the possibility of r e-challenge will increase immediately. Another idea is to support the cost of the commission by supporting the buy-now-pay-later (BNPL) settings, just as KLARNA actually provided. In the UK, more than 9. 5 million shoppers say they ignore shopping at retail stores that do not provide BNPL as a payment method.

However, if the customer does not understand the attempts of payment but also gives consent, what about periodic payments? The answer here is to "discover" the appropriate timing to apply the data to succeed in the payment plan. For example, intentionally ignoring the day before the salary payment date or paying off a mortgage.

CHECKOUT. COM proposes regular payment processing that first considers security and ease of use. By applying our survey results, regular payments can be effectively managed, leading to improved management productivity and customer satisfaction.

Unverified customer

Vendors should consider customer authentication without compliments. It can prevent frauds from fraudulent cards, which is a fine for merchants. However, authentication may still be incorrectly recognized, that is, the system cannot identify a true payer. In Europe, the seller has been increasingly doubtful about fraud, as the strict customer authentication (SCA) system has been introduced and penalties for violations have been strengthened.

Conclusion: 3DS2

With the appearance of 3D security 2. 0, the automation and accuracy of the certification process of the paper has been improved. The fresh protocol can distribute more than 100 data between the member stores and the payer card issuer, and evaluate the possibility that the paper will be considered true.

Disposable passwords (OTP), biometrics authentication such as fingerprints and face recognition, and QR code for mobile applications will be relatively preliminary authentication again. The adoption of 3DS2 shifts the confirmation of confirmation to the highest fraud, and consequently promotes the number of real payments that had been the opportunity to stop in an unpleasant case.

CHECKOUT. COM is currently being certified for 3DS 2. 1. 3. 1 I was certified by EMVCO (a technical organization that manages and promotes harmless payment networks). Thanks to the authentication, we have improved payment skills, prevent fraud, reduces baskets, reduces friction between customers, and improves payment efficiency.

Fraud triggers

It has the ability to interrupt payments on the route, as well as undecided customers. Fraud warnings can be triggered by incredible energy, for example, deviations of purchases, global purchases, unknown devices and icons. Banks are a risk, and as a result, you can see that they are unnecessary and cautious for each Bucks of the Cruck Online Payment account for the wrong difference between the real online payment. 。 However, the seller is not likely to affect these conclusions.

Conclusion: Construction of values ​​for business

Bank fraud's algorithm is complicated, but eventually consequents. The two main factors they care about are the size of the transaction and the success rate of payment. Thus, the most important factor is the over time of the payment method associated with the increase in the size of the transaction. The latter depends greatly on sales and marketing. However, payment strategies are also required. It may be unusual, but you can actually prove that your business (a certain period) will only generate less transactions than any other business, and to ensure that the maximum amount is passed through. There is sex.

There is no doubt that cooperating with the payment vendor, which provides detailed data on payment, will surely detect exhaust people who deviate more frequently. That way, the PSP can find out the cause of the improper payment and solve the problem directly with these publishers or through the scheme.

Canceled or expired card

The problem of the difference in payment by the old card is a more urgent problem for a business operated by a recycling profit model. In many cases, customers have once entered their own card information and then joined. Whether the store will be able to pay with the card in the future depends on whether this specific card will be used or whether to update the payment with the merchant.

Conclusion: Network token

Until a while ago, the only way for sellers to deal with old cards was to inform the buyer that the card expiration date was approaching or the expiration date had already expired. The rise of "tokenization" has changed history.

In the tokenization, the purchaser's card is replaced by a series of random ("token") provided by the card issuer. Unlike cards, the token has no expiration date, so there is no risk of unwilling customer outflow. The higher the security level of the token, the more measures against fraud and the higher the payment rate.

CHECKOUT. COM improves corporate abilities by generating PCI tokens and equipping important software that enables payment token. In addition, it is recommended that you have elasticity so that PCI tokens can be easily integrated into a comprehensive payment strategy.

Cross-border transactions

Companies aiming for international business development face the fact that the bank's ecosystem is not built as expected. By replacing the currency unit, another party will be added to the chain, and you must overcome various situations, such as different systems, regulations, and fraudulent rules. In this way, extra steps and pitfalls increase to achieve smooth settlement processing.

Conclusion: Mental Payment Ruting

By conducting some transactions at the district level, the number of chains and barriers can be reduced. However, opening a bank account in all countries that conducts a transaction costs a certain cost. Most governments require a legal status in the country, which is a difficult task. One way is to partner with a platform that allows all tasks to meet the legal requirements. The difference between < SPAN> old card payments is a more urgent problem for business operated by a circular interest model. In many cases, customers have once entered their card information. After that, whether or not the member will be able to pay for the card in the future depends on whether this specific card will be used or whether the customer wants to update the member store. There is.

Conclusion: Network token

Until a while ago, the only way for sellers to deal with old cards was to inform the buyer that the card expiration date was approaching or the expiration date had already expired. The rise of "tokenization" has changed history.

In the tokenization, the purchaser's card is replaced by a series of random ("token") provided by the card issuer. Unlike cards, the token has no expiration date, so there is no risk of unwilling customer outflow. The higher the security level of the token, the more measures against fraud and the higher the payment rate.

Incorrect payment information

CHECKOUT. COM improves corporate abilities by generating PCI tokens and equipping important software that enables payment token. In addition, it is recommended that you have elasticity so that PCI tokens can be easily integrated into a comprehensive payment strategy.

Companies aiming for international business development face the fact that the bank's ecosystem is not built as expected. By replacing the currency unit, another party will be added to the chain, and you must overcome various situations, such as different systems, regulations, and fraudulent rules. In this way, extra steps and pitfalls increase to achieve smooth settlement processing.

Conclusion: Mental Payment Ruting

By conducting some transactions at the district level, the number of chains and barriers can be reduced. However, opening a bank account in all countries that conducts a transaction costs a certain cost. Most governments require a legal status in the country, which is a difficult task. One way is to partner with a platform that allows all tasks to meet the legal requirements. The problem of the difference in payment by the old card is a more urgent problem for a business operated by a recycling profit model. In many cases, customers have once entered their own card information and then joined. Whether the store will be able to pay with the card in the future depends on whether this specific card will be used or whether to update the payment with the merchant.

Conclusion: Network token

Strategies to prevent credit card declines

Until a while ago, the only way for sellers to deal with old cards was to inform the buyer that the card expiration date was approaching or the expiration date had already expired. The rise of "tokenization" has changed history.

Address Verification Service (AVS)

Conclusion: Mental Payment Ruting

By conducting some transactions at the district level, the number of chains and barriers can be reduced. However, opening a bank account in all countries that conducts a transaction costs a certain cost. Most governments require a legal status in the country, which is a difficult task. One way is to partner with a platform that allows all tasks to meet the legal requirements. The problem of the difference in payment by the old card is a more urgent problem for a business operated by a recycling profit model. In many cases, customers have once entered their own card information and then joined. Whether the store will be able to pay with the card in the future depends on whether this specific card will be used or whether to update the payment with the merchant.

Conclusion: Network token

Network tokenization

Until a while ago, the only way for sellers to deal with old cards was to inform the buyer that the card expiration date was approaching or the expiration date had already expired. The rise of "tokenization" has changed history.

In the tokenization, the purchaser's card is replaced by a series of random ("token") provided by the card issuer. Unlike cards, the token has no expiration date, so there is no risk of unwilling customer outflow. The higher the security level of the token, the more measures against fraud and the higher the payment rate.

However, in return, sellers often use mental routing. Usually, the transfer of funds between banks is made by the nine digits linked to the bank. Let's think about this with a post index. However, if this route is overloaded due to all kinds of banking systems, legal acts, fraud, etc., a transaction requires another route. Mental routing works by "laying" payment requests through a thir d-party platform that can access a wide range of banks. The platform determines a more effective route between all lo w-cost banks, and in fact, a more likely bank that monitors transactions. If there is any mistake, the bank will be sent to the bank that is out of the list in terms of probability until the payment request is accepted and processed.

Intelligent payment routing

By conducting some transactions at the district level, the number of chains and barriers can be reduced. However, opening a bank account in all countries that conducts a transaction costs a certain cost. Most governments require a legal status in the country, which is a difficult task. One way is to partner with a platform that allows all tasks to meet the legal requirements. The difference between < SPAN> old card payments is a more urgent problem for business operated by a circular interest model. In many cases, customers have once entered their card information. After that, whether or not the member will be able to pay for the card in the future depends on whether this specific card will be used or whether the customer wants to update the member store. There is.

Conclusion: Network token

Until a while ago, the only way for sellers to deal with old cards was to inform the buyer that the card expiration date was approaching or the expiration date had already expired. The rise of "tokenization" has changed history.

Conclusion: Address service service (AVS)

3D Secure

With the appearance of 3D security 2. 0, the automation and accuracy of the certification process of the paper has been improved. The fresh protocol can distribute more than 100 data between the member stores and the payer card issuer, and evaluate the possibility that the paper will be considered true.

Disposable passwords (OTP), biometrics authentication such as fingerprints and face recognition, and QR code for mobile applications will be relatively preliminary authentication again. The adoption of 3DS2 shifts the confirmation of confirmation to the highest fraud, and consequently promotes the number of real payments that had been the opportunity to stop in an unpleasant case.

It is important to note that not all AVS matches are considered fraudulent, and literally, for example, not all AVS matches are considered legitimate. AVS by itself does not need to be used to verify the identity of the buyer. However, it is useful as part of a comprehensive strategy to combat fraud.

Business prioritization

Bank fraud's algorithm is complicated, but eventually consequents. The two main factors they care about are the size of the transaction and the success rate of payment. Thus, the most important factor is the over time of the payment method associated with the increase in the size of the transaction. The latter depends greatly on sales and marketing. However, payment strategies are also required. It may be unusual, but you can actually prove that your business (a certain period) will only generate less transactions than any other business, and to ensure that the maximum amount is passed through. There is sex.

There is no doubt that cooperating with the payment vendor, which provides detailed data on payment, will surely detect exhaust people who deviate more frequently. That way, the PSP can find out the cause of the improper payment and solve the problem directly with these publishers or through the scheme.

Failed payment notifications

An AVS check simply correlates the numerical meaning of the address provided by the buyer at the time of purchase with the address of the designated cardholder held by the issuing bank. The bank communicates the result to the merchant using a response code: absolute match, selective match, not available, international card, information not available, etc. Each card network uses its own code. With this information, you can decide how to proceed with the transaction.

It is important to note that not all AVS matches are considered fraudulent, and literally, for example, not all AVS matches are considered legitimate. AVS itself does not need to be used to verify the buyer's identity. However, it is useful as part of a comprehensive strategy to combat fraud.

Not long ago, the only way for merchants to deal with old cards was to inform the buyer that their card was about to expire or had already expired. The rise of "tokenization" changed history.

Alternative payment options

With tokenization, the buyer's card is replaced with a randomly generated set of quantities, or "tokens," provided by the card issuer. Unlike cards, tokens do not expire, eliminating the risk of involuntary customer churn. A high level of security for the token will help prevent fraud and increase the success rate of payments.

CHECKOUT. COM has expanded and appealed for corporate functions by software required to generate PCI tokens used for payment. In addition, we provide flexibility to easily integrate network token into your integrated payment strategy.

• However, more and more member stores that use intellectual routing are increasing. Previously, money between banks has been carried out according to the nine digit numbers accompanied by banks. Let's consider this with the postal code. However, if this route is crowded due to different bank systems, legal measures, fraud, etc., transactions require another route. Intelectual routing works by "laying" payment requests through a thir d-party platform that can access a wide range of banks. This platform determines the most effective route between all available banks, and is very important, the most likely to accept transactions. If there is any mistake, the payment will be sent to the highly possible bank until the payment request is accepted and processed.
• The new CHECKOUT. COM intelligent accelectical product supports the payment routing, such as determining which payment network will be paid. At the stage of pr e-processing, the conversion rate is enhanced and the most susceptible payment rails are available. Intelligent acceleration also ensures maximum security using machine learning and using a network token that masks the main card number (PAN).
• One-time passwords (OTP), biometrics such as fingerprint or facial recognition, and QR codes for mobile applications provide another level of authentication that does not require special effort. Adopting 3DS2 allows you to shift the burden of proof to the more likely fraudulent ones, thereby contributing to increasing the number of genuine payments that might otherwise be blocked.
• Bank fraud algorithms are complex, but they essentially boil down to probability. The two key factors they look at are transaction volume and payment success rate. So, the most important thing is to improve your deposit rate over time while increasing your transaction volume. The latter depends a lot on sales and marketing. But payment strategy is also important. Oddly enough, your business may find it better to focus on reducing the number of transactions that occur (for a period of time) and getting those that do pass through.
• Speed ​​of communication is crucial. Sending a message in real time while the customer is still in purchase mode increases the likelihood that they will immediately repeat the attempt.

Some customers may not know that their payment has not expired, as not all banks and systems will notify them immediately. If their payment is declined the first time, send a friendly message with a call-to-action button to let the customer know to go to a page where they can fix the situation.

However, if the customer does not understand the attempts of payment but also gives consent, what about periodic payments? The answer here is to "discover" the appropriate timing to apply the data to succeed in the payment plan. For example, intentionally ignoring the day before the salary payment date or paying off a mortgage.

Alternative payment methods (APMs) allow customers to pay without cash or a card from one of the major card schemes like Visa or MasterCard.

How Checkout.com can help you with card payment declines

Below are the most common types of APM and their definitions:

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Purchasing cards: You download money onto a purchasing card and can spend only what you download. You are not tied to a bank account and you do not need to take out a loan.

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Real-time bank transfers: You can pay for online purchases directly from your bank account. Popular examples are ideal and sofort.