Understanding Why Your Credit Card Might Be Declined
Credit card declines can happen for various reasons, such as suspected fraudulent activity, exceeding your credit limit, using an expired card, entering incorrect details, or a hold placed by your bank. Below, we explain these issues and provide clear solutions to help you resolve them quickly and confidently.
Common Reasons for Card Declines
Insufficient Funds or Credit
According to a study by Ethoca, 44% of card declines are due to insufficient funds or maxed-out credit. In such cases, the issue lies with the cardholder, not the business. Offering "buy now, pay later" options, supported by services like Stripe, can help reduce declines due to insufficient funds. Cardholders might also need to transfer money from another account to resolve the issue.
Incorrect Data, Expired Card
This is particularly common in online transactions, where entering the wrong card number, CVV, or expiration date can lead to a decline. About 20% of card declines occur due to incorrect information. This problem is easily fixed by re-entering the correct details.
Failed 3DS Verification
Starting from November 1, 2023, all credit cards must have 3 Domain Secure (3DS) authentication enabled to make payments. Before your bank can proceed your payment they will ask verification like a text messege contains a code to make sure it's the cardholder use the card to make the purchase.
Suspected Fraudulent Activity
Large purchases or numerous transactions in a short period can trigger fraud alerts, leading to a decline. Cardholders can resolve this by contacting their issuing bank to verify their identity and authorize the charges.
Virtual card,Card Not supported
If your card is virtual card or some cashback reward card, we may not be able to proceed your payment as our payment processor treats it as high risk transaction, change to another card or contact your bank/issuer.
Incompatible Card Network
If the card network (e.g., American Express) isn't supported by the terminal, the transaction will be declined. Solutions like Stripe support most major card networks globally, helping to prevent such issues.
What to Do If Your Card Is Declined
1. Verify Information and Try again
Double-check that you have entered your card details accurately and make sure the balance/credit is sufficient and then try it again.
2. Contact the bank and request approve the transaction
If you pass the 3DS verification and the problem persists, call the bank/card issuer. They can provide specific information about the issue and how to resolve it.
3. Alternative Payment Methods
If the issue with your card takes time to resolve, consider using Paypal payment which has credit/debit card payment options.