Understanding declined payments

Ever experience a declined payment? This payment occurrence has the potential to turn a supposed seamless transaction into a difficult ordeal. Whether someone is trying to buy a must-have item online or simply settle a bill, few situations are as frustrating as an unexpected "declined" message.

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This article will explain declined payments, detail some of the common causes behind these events, and suggest possible actions people can take to help prevent and solve them.

What are declined payments?

A declined payment is simply when a financial transaction — such as a credit card purchase on an online store — fails to go through. The seller or middleman may decline to process the payment due to various factors. If this happens, buyers will typically receive an error message at the checkout explaining that their payment is unsuccessful.

Common reasons for a declined payment

There are several reasons an individual’s payment method could be declined. Here are some examples:

• Network connections: Patchy internet or mobile network connectivity can lead to online shops failing to receive or process a purchase.
• Payment information errors: Payments may be declined if people mistakenly type in the wrong name, card number, expiry date, or CVV (Card Verification Value).
• A lack of funds: Payments may decline simply because the card or app does not have sufficient funds to pay for the good or service.
• Old cards: Credit and debit cards have expiry dates. Payments will decline when someone tries to use a card after its expiry date.
• Fraud or verification errors: Anti-fraud algorithms may misinterpret an individual’s transaction as potentially fraudulent. If someone is making a purchase overseas, this may trigger a payment decline.

What to do if a card is declined?

When someone sees their payment has declined, they may consider the following steps:

• Check browser systems, mobile network connections, and internet speed.
• If shopping online, re-check the payment information entered during checkout.
• Check both sides of the card or payment details stored in an app to see if the payment method has expired.
• Log in to online banking and confirm the debit or credit card has sufficient funds.
• Contact the bank or card issuer.

What to do when payment methods are declined

Card payments are not the only payment method that can result in declined payments. Payments via digital apps and wallets may also result in declined payments.

Individuals may need to take immediate action to understand the cause of the decline. Clear and timely communication with banks, card issuers, and payment providers may help get to the bottom of the issue quickly.

Here are some potential tips:

• Check the details: Review the payment information entered on the checkout page to confirm accuracy.
• Avoid multiple attempts: Some shoppers receive declined payment messages and re-attempt the purchase several times. In some instances, this can result in multiple pending charges and failed attempts.
• Check balances and limits: By looking at bank balances or credit card limits, people can quickly understand if their payment failed due to insufficient funds. They can also double-check that the declined payment has not appeared on the account statement or recent transaction summary.
• Contact relevant financial providers: Individuals may need to contact their bank or card issuer to understand why the payment failed.
• Contact the merchant or marketplace: Contact the seller to inquire whether they’re experiencing issues with their checkout system.
• Consider another payment method: Try to complete the purchase with an alternative payment method to see whether the issue lies with the specific card used or due to another reason, such as a network issue or checkout system issue.

Preventing declined payments

There are steps that can help reduce the chances of failed payments. Here are some examples:

• Keeping an eye on account and card balances.
• Enabling low balance, overdraft, and credit limit notifications.
• Checking the details of stored cards often.

Learn more about safeguarding transactions when shopping online.