Credit Card Decline Codes: Meaning, Reason & Prevention Tips
Overview
Credit card declines can be frustrating, whether you’re shopping online, dining out, or making a big purchase. When a transaction fails, the card processor provides a decline code to explain why. Understanding these codes can help you resolve payment issues quickly and avoid future declines. In this guide by Academic Block, we’ll explore what credit card decline codes mean, the most common reasons for transaction failures, and how to fix them.
What Are Credit Card Decline Codes?
A credit card decline code is a numeric or alphanumeric code provided by a bank or payment processor when a transaction fails. These codes help merchants and cardholders understand why a payment was unsuccessful.
Decline codes typically fall into these categories:
- Insufficient funds (e.g., Code 51)
- Fraud or security concerns (e.g., Code 05)
- Technical issues (e.g., Code 91)
- Card restrictions (e.g., Code 57)
Each code gives insight into why a payment didn’t go through and whether it’s an issue with the cardholder, the merchant, or the payment processor.
Common Credit Card Decline Codes and Their Meanings for Merchants
Here’s a breakdown of some of the most frequent decline codes, their meanings, and possible solutions:
– Solution: Try using another payment method, depositing more funds, or contacting your bank for assistance.
– Solution: Contact your bank to verify the transaction and request approval.
– Solution: Use an updated card and update your details for recurring payments.
– Solution: Double-check and re-enter the correct card number.
– Solution: Re-enter the correct CVV code. If it still fails, contact your bank.
– Solution: Activate the card by following the issuer’s instructions.
– Solution: Contact your bank to check for any restrictions and request necessary approvals.
– Solution: Contact your bank for a replacement card.
– Solution: Retry after a few minutes or contact the bank if the issue persists.
– Solution: Pay off some of the balance or request a limit increase from the bank.
How Can Merchants Fix Credit Card Declines
If your credit card gets declined, follow these steps:
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Check Your Card Details : Ensure that the card number, expiration date, CVV, and billing address are correct.
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Verify Your Available Balance : Log into your bank account or app to see if you have enough funds or available credit.
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Retry the Transaction : Sometimes, a simple retry can work, especially if it’s a temporary issue.
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Use a Different Payment Method : If your card is consistently declined, consider using another card or a different payment method.
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Contact Your Bank : If the problem persists, call your bank or credit card issuer to understand the issue and resolve it.
Comprehensive List of Common Credit Card Decline Codes
Below is a detailed list of common credit card decline codes, their meanings, and possible solutions to resolve transaction issues.
Understanding these decline codes helps merchants and customers resolve payment issues efficiently, improving transaction success rates.
How to Prevent Credit Card Declines
To avoid frustrating payment failures, follow these best practices:
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Keep Your Card Details Updated : Ensure that your card information (number, expiration date, billing address) is accurate, especially for subscriptions and recurring payments.
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Monitor Your Spending and Credit Limit : Check your balance and available credit regularly to avoid insufficient fund declines.
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Enable Bank Notifications : Set up alerts for transactions, low balances, and security issues to stay informed.
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Activate and Update Your Card Promptly : If you receive a new card, activate it immediately and update your payment details with merchants.
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Notify Your Bank of Travel Plans : If you’re traveling, inform your bank to prevent your card from being flagged for suspicious activity.
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Use Secure and Verified Websites : When shopping online, ensure the site is secure (look for “https://” in the URL) to prevent fraud-related declines.
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Resolve Disputes and Fraud Alerts Quickly : If your bank places a hold on your card due to suspected fraud, contact them immediately to verify transactions.
How Can Merchants Reduce Credit Card Decline Rates?
Reducing credit card decline rates is crucial for merchants to ensure smooth transactions and improve customer experience. Here are key strategies:
– Reduces failed transactions due to outdated card information.
– Use AI-based retry strategies to increase approval rates.
– Helps customers complete purchases even if one method fails.
– Reduces fraud-related declines and authorization failures.
– Increases the chance of approval for genuine customers.
– Encourage them to update payment details in advance.
By implementing these strategies, merchants can lower decline rates, improve revenue, and enhance customer trust.
Final Words
Credit card decline codes can be confusing but understanding them helps you troubleshoot payment issues and prevent future declines. By keeping your card details updated, monitoring your balance, and responding quickly to issues, you can ensure smooth transactions. If you frequently experience declines, contacting your bank is the best step to identify and resolve the problem. Stay proactive and informed to avoid payment disruptions. Hope you liked this article by Academic Block, please share your thoughts below in the comment section to make this article better. Thanks For Reading!
This Article will answer your questions like:
Credit card decline codes are numerical or alphanumeric messages generated by banks or payment processors to explain why a transaction failed. These codes help merchants and consumers understand issues such as insufficient funds, incorrect card details, or suspected fraud. Each code corresponds to a specific reason for decline, allowing for quick troubleshooting. Recognizing these codes is crucial in maintaining smooth transactions and minimizing payment failures in both online and in-store purchases.
A transaction may be declined due to multiple reasons, including insufficient funds, incorrect billing details, expired or blocked cards, or security concerns from the issuing bank. Fraud prevention measures may also lead to declines if the transaction appears unusual. Additionally, technical issues with the payment gateway or exceeding the credit limit can contribute to repeated failures. Reviewing the decline code provided and contacting the bank can help resolve the issue effectively.
Payment declined error codes are specific numerical indicators assigned by banks and payment processors to describe why a transaction was unsuccessful. These codes range from issues like insufficient funds (code 51), expired cards (code 54), or suspected fraud (code 05). Merchants and customers can use these codes to identify and rectify payment issues, ensuring a smoother transaction process. Understanding these codes is crucial for effective financial management and reducing declined transactions.
Merchants may decline transactions due to potential fraud risks, mismatched billing details, or policy restrictions. Some merchants implement security protocols that reject high-risk payments, such as large international transactions or repeated failed attempts. Additionally, transactions may be declined if the issuing bank flags them for unusual spending behavior. Merchants aim to protect themselves and their customers from financial fraud, making these decline measures essential in ensuring safe payments.
Banks reject transactions for reasons including insufficient funds, incorrect credentials, expired cards, security concerns, or potential fraud alerts. Automated systems analyze transaction patterns, and if an activity appears suspicious—such as purchases from unusual locations or large withdrawals—the bank may block the transaction. Customers can resolve this by verifying details, ensuring sufficient funds, and contacting the bank to lift security restrictions.
Common reasons for credit card denial include exceeding the credit limit, expired or blocked cards, incorrect CVV or billing details, and suspected fraudulent activity. Banks may also decline transactions if the cardholder’s account has unpaid balances, unauthorized international purchases, or suspicious spending behavior. Understanding these factors can help individuals avoid declined payments and ensure smooth financial transactions.
The ‘Do Not Honor’ decline code is a generic response from banks, typically issued due to security concerns, suspected fraud, or insufficient funds. It may also arise from temporary account restrictions, spending limits, or an expired card. To resolve this, cardholders should verify their bank details, ensure sufficient funds, and contact their bank for approval.
Decline code 05 on Mastercard means “Do Not Honor.” This indicates that the issuing bank is rejecting the transaction, often due to suspected fraud, insufficient funds, or an internal block on the card. Cardholders should contact their bank to clarify the reason and request approval for future transactions.
A Discover card may be declined despite sufficient funds due to incorrect credentials, security restrictions, international transaction blocks, or exceeded daily spending limits. Some merchants may not accept Discover cards, which could also lead to declined transactions. Contacting Discover customer support can help resolve the issue efficiently.
Card decline codes are numerical indicators used by banks and payment processors to explain why a transaction was unsuccessful. These codes, such as 05 (Do Not Honor), 12 (Invalid Transaction), and 51 (Insufficient Funds), help merchants and customers understand specific issues, whether it’s fraud prevention, expired cards, or account restrictions. Knowing these codes aids in troubleshooting failed payments efficiently, reducing declined transactions and ensuring smooth financial operations.
Credit card declines occur due to insufficient funds, expired cards, incorrect card details, security blocks, or exceeding credit limits. Banks may also decline transactions due to suspected fraud, foreign purchases without prior authorization, or mismatched billing addresses. Regularly monitoring statements, updating information, and contacting the issuer in case of unexpected declines can help prevent payment issues. Understanding decline reasons ensures smoother transactions and better financial management.
To fix a credit card declined by the issuer, first verify your card details and ensure sufficient funds or credit availability. Contact your bank to identify the issue, especially if it’s due to fraud prevention or a security block. Updating billing information, ensuring the card is active, and retrying the transaction can help. For frequent declines, consider using an alternative payment method or requesting a credit limit increase to prevent disruptions.
Being rejected for a credit card can temporarily impact your credit score if the application results in a hard inquiry. Multiple rejections may indicate weak creditworthiness, affecting future approvals. Lenders assess credit history, income, and debt levels before approval. To improve approval chances, enhance credit scores, lower debt-to-income ratios, and review reports for errors. Applying strategically instead of frequently can help maintain financial credibility and secure approvals.
Your credit card may be declined despite sufficient funds due to security concerns, incorrect billing information, or card restrictions. Banks often block transactions flagged as suspicious, such as unusual purchases or foreign transactions. Additionally, exceeded daily spending limits, outdated card details, or technical errors can cause declines. Contacting your bank, verifying transaction details, and ensuring proper authentication methods can help resolve such issues promptly.
Decline code 51 indicates insufficient funds, meaning the available balance or credit limit is lower than the transaction amount. Banks reject such payments to prevent overdrafts or unpaid balances. To resolve this, verify account balances, transfer funds if necessary, or use an alternative payment method. Keeping track of spending and ensuring sufficient funds before making transactions can prevent declined payments and additional fees.
Credit card decline code 12 signifies an “Invalid Transaction.” This may occur due to incorrect transaction details, unauthorized payment attempts, or system errors. Merchants or payment processors may restrict certain types of transactions, leading to automatic declines. To resolve this, verify transaction accuracy, ensure compliance with merchant policies, and retry with correct credentials. If issues persist, contacting the card issuer can provide clarity and alternative solutions.
Decline code 13 on Mastercard represents an “Invalid Amount” error. This occurs when a transaction amount is incorrect, negative, or exceeds account limitations. Common causes include decimal placement errors, currency mismatches, or system misconfigurations. To fix this, double-check transaction amounts, ensure proper format, and verify if account limits allow the payment. If problems persist, contacting the card issuer or merchant can resolve the issue.