Why do some card payments get declined?
When a customer's card issuer receives a charge, their automated systems determine whether to authorize it. These systems analyze various factors such as spending habits, account balance, and card details like expiration date, address, and CVC.
Card payments can fail for several reasons, including:
- Insufficient Funds: If the customer lacks sufficient funds or credit, the card issuer will decline the transaction.
- Incorrect Card Information: If the customer enters incorrect details such as the card number, CVV, or expiration date, the transaction may be declined.
- Suspicious Activity: If the issuer detects potential fraud (for example, large purchases or numerous transactions within a short period), the payment might be blocked. In this case, the customer should contact their issuing bank to confirm their identity.
What to do when a card payment is declined?
To resolve issues like incorrect card details or insufficient funds, ask your customer to correct the error or use an alternative card or payment method. You can inform them that their card was declined and provide a new authorization link or invoice for payment.