However, please note that error codes differ from gateway to gateway, as there are no standardized error codes, so we recommend to always follow the error message. In this post, we will tell you everything you need to know about dealing with credit card declines and most importantly, how you can recover ‘lost revenue’ due to these declines.Feel free to deep dive into the segment you’d like to know more about,A credit card decline occurs if, for a particular reason, a credit card payment cannot be processed and the transaction is declined by the payment gateway, the processor, or the bank issuing the money.
What Can You Do If You Had a Credit Card Application Declined?
Instead, it would consider all the information provided in the customer’s account and then decide whether there could be a potential threat.Riskified, a revenue protection software, holds that preventing false declines and false blocks can have a significant impact on your bottom line. I am the human version of Daria Morgendorffer minus the glasses | Marketing specialist @ Chargebee If your credit card application was rejected, you can ask the issuer to reconsider, improve your credit and reapply, or apply for a different card. It’s a common problem faced by businesses that process recurring payments. Irrespective of what’s causing the payment to fail, every time a card is declined, your gateway (or processor) issues two accompanying, but different pieces of information, It is typically a number, a code that identifies the error to the system. If a Discover card wasn’t used, ask the cardholder to contact their bank.Monitor subsequent transactions to check for fraudulent transactions on alternate cards. When the bank confirms it will process correctly, attempt the transaction again.Ask the customer to use a different card or to contact their bank.As you can see, there are different reasons for declined credit card transactions. Ask for more information about the reason the credit card application was declined. Apart from taking all precautions, a good portion of your churn could be attributed to voluntary churn which is indeed painful.
Note that there are also customers that drop their purchase or select a different online store (The declined transaction can have a negative impact on your relations with customers who can blame you for the issue, not to mention your bottom line. Rather than blacklist and block transactions like these (that your gateway perceives are fraudulent), it might make sense to allow the transactions and flag it for a review later (whitelisting and calling these transactions safe can be just as bad). They coupled this with Chargebee’s dunning management and managed to reduce churn by almost 100%!If a credit card on file resulted in a failed payment due to a hard-decline such as card expiry, there’s no point trying that same card again a few weeks later.In this way, one needs to understand that every form of failed payment requires a different dunning method, and doing this manually can be hectic and time consuming for a subscription business. A credit card decline occurs if, for a particular reason, a credit card payment cannot be processed and the transaction is declined by the payment gateway, the processor, or the bank issuing the money. Most retailers around the world, whether online or offline, accept credit and debit card payments. The transaction can be declined by the processor, the payment gateway or, what is the most common, by the The processing system assigns these codes to transactions and you can see a short explanation for each of them on your profile in the SecurionPay dashboard that comes like the one below.There are two categories of credit card declines, and these are soft declines and hard ones. Why was my debit card declined? If you have questions about why your debit card was declined, the best thing to do is call your institution directly.
Chargebee’s Smart Retry, combined with Checkout.com’s Fraud Detection help in reducing payment declines while still ensuring a significantly higher approval rate.Dunning management when done right can save massive amounts of revenue. Chargebee’s dunning management includes in its armory, the which brings in knowledge about why the payment failed in the first place and automates the dunning response to it. They used Chargebee’s Revenue story to get an accurate picture of their data and improved MRR by 35%.