Card Declines: A Merchant’s Guide to Understanding and Resolving Transaction Errors
Card Declines: A Merchant’s Guide to Understanding and Resolving Transaction Errors
As a merchant, credit card declines are a part of everyday business—but understanding why they happen can help you handle them more effectively and provide better support to your customers. Each decline code points to a specific reason, whether it's an issue with the cardholder's bank, the card itself, or the transaction attempt.
Here’s a practical breakdown of the most common card decline messages and what you can do when they occur.
1. Generic Decline
What it means: A broad response with no specific reason provided by the cardholder’s bank.
What to do: Advise the customer to contact their bank for more details.
2. Exceeded Credit Limit
What it means: The cardholder has hit or surpassed their credit limit.
What to do: Ask the customer to either make a payment to reduce their balance or use another card.
3. Duplicate Payment Found
What it means: The transaction appears identical to a recent one and may have been flagged as a duplicate.
What to do: Check your system for duplicate charges. If it hasn’t processed, retry the transaction with a unique reference.
4. Insufficient Funds
What it means: The customer doesn’t have enough money in the account to complete the transaction.
What to do: The customer should use another form of payment or deposit funds into the account.
5. Do Not Honor
What it means: The bank has declined the transaction without specifying a reason.
What to do: Recommend that the customer reach out to their bank to resolve the issue.
6. Invalid Card Number
What it means: The card number entered is incorrect or does not exist.
What to do: Ask the customer to double-check and re-enter the number.
7. Card Not Activated
What it means: The card hasn’t been activated by the cardholder.
What to do: Instruct the customer to activate their card following their bank’s instructions.
8. Incorrect PIN
What it means: The PIN entered was incorrect.
What to do: Have the customer re-enter the correct PIN or reset it through their bank.
9. CVV Mismatch
What it means: The three-digit CVV code on the back of the card doesn’t match the bank’s record.
What to do: Verify and re-enter the CVV. If it continues to fail, the customer may need a new card.
10. Restricted Card
What it means: The card is limited from certain types of transactions (e.g., international, online).
What to do: Recommend the customer check with their bank or use another payment method.
11. Expired Card
What it means: The card has passed its expiration date.
What to do: Request a different card or suggest the customer contact their bank for a replacement.
12. Processing Error
What it means: A technical issue occurred during transaction processing.
What to do: Retry the transaction. If the problem persists, contact your payment processor.
13. Blocked Card
What it means: The card has been reported as lost, stolen, or has been manually blocked by the cardholder.
What to do: Inform the customer to contact their bank to determine next steps.
14. Exceeded Frequency Limit
What it means: The card has reached the maximum number of allowed transactions within a given period.
What to do: Suggest waiting before retrying, or using another card.
15. Suspected Fraud
What it means: The transaction was flagged as suspicious by the bank’s fraud detection systems.
What to do: Recommend the customer contact their bank to verify the transaction and lift any hold.
16. Address Verification Failed
What it means: The billing address entered does not match what the bank has on file.
What to do: Ask the customer to confirm and re-enter their billing address.
17. Invalid Transaction Type
What it means: The attempted transaction isn’t allowed with this card (e.g., refund, cash advance, etc.).
What to do: Try a different transaction method or use another card.
Final Thoughts
When a card is declined, it can be frustrating for both you and your customer. But understanding these common decline codes allows you to confidently guide customers toward a resolution—whether that’s retrying the transaction, verifying details, or contacting their bank.
By staying informed and offering helpful support in the moment, you not only protect your business from failed payments but also build stronger trust with your customers.