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Credit card rejection reasons

When customer pays for goods or services with a debit or credit card, but the payment is rejected, this is not good news for the seller.

Why is this happening? After all, the rejection of the card is solely the client’s problem.

Unfortunately for companies, no. Frequently, many customers simply have no alternative but to pay with a payment card. They do not have money on electronic wallets, they do not have cash with them. As a result, if a customer can only pay with a bank card, but the payment is rejected, the company may lose its customer forever. When the client solves the problem with payment by plastic card, he can find more favorable conditions for buying goods than your company offers.

That is why it is so important to know the reasons why a card payment can be rejected. Let’s look at them more closely.

Reasons for card rejection

  1. One of the most common reasons for card rejection is to enter an incorrect pin code. In this case, the company can’t help the client in any way, because the pin code is confidential information. If the customer has forgotten his pin code, he should call the bank and ask to reset the pin code.
  2. The second most popular reason is exceeding the limit for withdrawing funds. Surprisingly, many bank customers do not even know about the existence of this limit. The solution to this problem is to increase it. To do this, the client needs to call the bank or use the Internet banking service to change the limit on his own, if possible.
  3. Another reason to reject the card is to enter incorrect personal data. This problem very often occurs when clients paying online. Before making an online purchase using a card, it is important to make sure that the client provides information that matches his card.
  4. Expiration of the card may also be a possible reason for card rejection. In this case, the problem solved by contacting the bank and updating the card info. In most cases, the plastic card is issued to the client immediately.
  5. The client performs an operation that is unusual for them. Could it be a reason to reject a payment? Yes. What does it mean “the client makes an operation unusual for himself”? For example, previously the client has not spent more than $100 per day with the card, when suddenly he pays by card for the purchase of a car or other expensive goods. In this case, the bank may reject this transaction for security reasons. To solve this problem, the customer will need to call the bank and confirm that he is actually making a payment for a specified amount by specifying the purpose of payment.
  6. The card may also be rejected for technical reasons. Let’s say that during the payment by the card the Internet connection was lost or there was a problem on the side of the bank, which had to process a huge number of transactions simultaneously. If a customer pays with a card in a terminal, he may ask the seller to use another terminal. In other cases, he will just have to wait and then repeat the attempt to pay by card again.
  7. Credit card can be rejected if the client has exceeded the limit of credit funds. If the credit limit exceeded, the bank will not allow the customer to pay by credit card. In order not to get into such a situation, the client recommended to install a mobile application of the bank, where he can control the balance of the credit account.

How can companies help clients to solve the problem?

The answer is obvious – offer him as many alternatives to pay by credit and debit cards as possible. It is not so difficult to do, it is enough to choose a payment institution, which will offer you a wide range of opportunities and loyal tariffs. Your clients will be glad to know that they can make payments not only by debit and credit cards, but also by more than 300 other methods.

The PayOp company accepts payments in more than 170 countries. We offer every merchant individual and most favorable conditions of cooperation.

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