Looking for a quick resource on all credit card decline codes and the recommended action? We created this guide to help our merchants better understand why declines occur and to also shed some insight on what can be done as a merchant to avoid declines.
What Is A Decline Code?
A decline code is an alphanumeric error code, usually two digits, that explains the reason behind a declined card transaction. These codes can come from various sources, primarily the issuing bank, payment processor, or credit card networks.
Businesses may not always receive the specific decline code. For instance, if they’re using a payment processor like Stripe or Adyen, they might encounter unique decline codes specific to that platform. These codes offer insights into why a transaction failed and can guide merchants in resolving the issue to successfully complete the transaction. Understanding these codes is essential for improving payment success rates and enhancing customer satisfaction.
Are you looking for Venmo specifically? Checked out our guide on Venmo payment declines here.
Hard Decline Codes vs. Soft Decline Codes
In payment processing, decline codes indicate why a transaction was not approved. Understanding the difference between hard and soft declines is crucial for businesses to manage payment issues effectively.
Hard Decline Codes
Hard declines occur when a transaction is permanently rejected. This typically means that the issue cannot be resolved through simple means. Common reasons include:
- Insufficient Funds: The cardholder doesn’t have enough money in their account.
- Expired Card: The card being used is no longer valid.
- Invalid Account Number: The card number entered is incorrect or does not exist.
- Stolen or Lost Card: The card has been reported as stolen or lost, preventing any transactions.
Once a hard decline happens, the merchant usually needs to seek an alternative payment method from the customer.
Soft Decline Codes
Soft declines, on the other hand, indicate that the transaction is temporarily rejected but may succeed upon reattempt. These declines often suggest issues that could be resolved quickly. Common examples include:
- Insufficient Funds (Temporary): The account might have had a momentary shortfall, but funds could be deposited soon.
- Transaction Limit Exceeded: The transaction exceeds the allowable limit for a single purchase but might succeed if attempted at a lower amount.
- Card Verification Issues: Temporary issues with the card’s verification, which may resolve quickly.
In many cases, merchants can encourage customers to retry the transaction after addressing the underlying issue.
The Challenge of “Do Not Honor” Declines
There are numerous decline codes that fall into a gray area, often causing confusion for merchants. One of the most notorious examples is the “Do Not Honor” code. This catch-all code is used when the issuer rejects a transaction without specifying a clear reason. The ambiguity leaves merchants in a difficult position, as they must guess the cause and decide on the appropriate fallback strategy. Meanwhile, customers are left frustrated by a transaction failure they don’t understand.
The flow of decline codes involves multiple layers, each contributing to how these codes are interpreted and managed:
- Issuer: The issuing bank generates response codes based on the cardholder’s account status. This could include reasons like insufficient funds, transaction limits, or suspected fraud.
- Card Networks: These networks standardize the codes according to industry norms. Despite this standardization, slight variations may occur between different networks.
- Acquirers/Payment Systems: These entities further refine the response codes, often grouping them to provide merchants with clearer insights into why a transaction was declined.
- Merchant-Level Actions: Merchants use the refined codes to implement tailored strategies. This might involve intelligent retry logic or alternative payment methods to recover lost sales.
Understanding the root causes of declines is essential for reducing lost revenue and improving the overall payment experience. By analyzing decline codes and adjusting retry strategies accordingly, merchants can minimize disruptions and enhance their customers’ satisfaction. Additionally, staying within the permitted retry limits helps merchants avoid penalties and maintain compliance with card network regulations.
What Triggers a Decline Code?
A variety of factors can lead to a credit card decline, and not all are related to insufficient funds or fraud. Here are some common triggers that merchants should be aware of:
- Expired Card: Users may continue to use cards past their expiration date, resulting in declines.
- Insufficient Funds: The account may lack the necessary balance to complete the transaction.
- Invalid Card Number: Problems can arise if the card number cannot be verified by the issuing bank.
- Verification Issues: A malfunctioning microchip or magnetic stripe can prevent successful processing, often requiring manual entry.
- Credit Limit Exceeded: Transactions that exceed the cardholder’s available credit will be declined.
- Transaction Restrictions: Cardholders may set limits on certain types of purchases or block specific transactions.
- Incorrect CVV: Entering the wrong security code can result in a decline, often due to user error.
- Invalid Transaction: Mistakes in entering card details can lead to processing errors.
Being aware of these triggers can help businesses better handle transaction challenges and improve customer satisfaction.
Common Credit Card Decline Code Glossary (Visa & Mastercard)
Below you will find all common credit decline codes. Should you have any questions, please reach out to our team.
| Decline Code | Meaning | Recommended Action |
|---|---|---|
| 01 | Refer to Card Issuer | Contact the card issuer for further instructions. |
| 02 | Refer to Card Issuer (Special Condition) | Similar to code 01; advise customer to check with their bank. |
| 03 | Invalid Merchant | Ensure your merchant account is active and set up correctly. |
| 04 | Pick Up Card (No Fraud) | The card is reported; advise customer to contact their bank. |
| 05 | Do Not Honor | Contact the issuer for more information; may require retrying the transaction. |
| 06 | Error | Reattempt the transaction or try a different payment method. |
| 07 | Pick Up Card (Fraud) | The card is flagged; suggest the customer use another card. |
| 10 | Partial Approval | Check if the transaction can be completed with a smaller amount. |
| 12 | Invalid Transaction | Verify the transaction details and try again. |
| 13 | Invalid Amount | Check that the transaction amount is within limits set by the issuer. |
| 14 | Invalid Account Number | Confirm that the account number is correct; ask the customer to re-enter it. |
| 15 | No Such Issuer | The card issuer does not exist; suggest using a different card. |
| 19 | Re-enter Transaction | Advise the customer to try the transaction again. |
| 21 | No Action Taken | No changes were made; advise the customer to retry later. |
| 25 | Unable to Locate Record in File | Suggest checking account details or trying another card. |
| 28 | File Temporarily Unavailable for Update or Inquiry | Wait and try again later. |
| 41 | Lost Card, Pick Up | Advise the customer to contact their bank. |
| 43 | Stolen Card, Pick Up | Inform the customer to reach out to their issuer. |
| 51 | Insufficient Funds | Inform the customer to check their account balance. |
| 52 | No Current Account | Suggest using a different card or contacting the bank. |
| 53 | No Savings Account | Advise the customer to check their account options. |
| 54 | Expired Card | Request an updated card from the customer. |
| 55 | Incorrect PIN | Suggest the customer re-enter the PIN correctly. |
| 57 | Transaction Not Permitted – Card | Contact the issuer for more details. |
| 58 | Transaction Not Permitted – Terminal | Confirm the transaction type is allowed. |
| 59 | Suspected Fraud | Advise the customer to verify with their bank. |
| 61 | Exceeds Approval Amount Limit | Suggest contacting the issuer to raise the limit. |
| 62 | Invalid/Restricted Service Code | Check the service code used in the transaction. |
| 63 | Security Violation | The transaction appears suspicious; verify with the customer. |
| 64 | Transaction Does Not Fulfill AML Requirement | Ensure compliance with anti-money laundering regulations. |
| 65 | Exceeds Withdrawal Limit | Advise the customer to check their withdrawal limits. |
| 70 | PIN Data Required | Request the customer to enter their PIN. |
| 75 | Allowable Number of PIN Entry Attempts Exceeded | Inform the customer to contact their issuer. |
| 76 | Unsolicited Reversal | The transaction was reversed without request; check for errors. |
| 78 | Blocked, First Use | Advise the customer to contact the issuer for details. |
| 79 | Already Reversed | Confirm with the customer if the reversal was expected. |
| 82 | Negative CAM, dCVV, iCVV or CVV Results | Check for issues with card verification data. |
| 85 | No Reason to Decline | Suggest trying the transaction again or using a different method. |
| 86 | Cannot Verify PIN | Recommend contacting the bank for assistance. |
| 91 | Issuer or Switch Unavailable | Wait for the network to be restored; retry later. |
| 92 | Unable to Route Transaction | Check for network issues; try again later. |
| 93 | Transaction Can’t Be Completed – Legal Violation | Advise the customer to contact their issuer for details. |
| 96 | System Error | Wait and retry the transaction later. |
| 97 | Invalid CVV | Confirm that the CVV is entered correctly; ask for re-entry. |
| 1A | Additional Customer Authentication Required | Request the customer to provide further verification. |
| R0 | Recurring Charge Stopped at Customer Request | Inform the customer that their recurring charge has been canceled. |
| R1 | Recurring Charge Stopped at Customer Request | Similar to R0; confirm the cancellation with the customer. |
How Merchants Can Lower Credit Card Decline Rates
While not all credit card declines are within a merchant’s control, reducing these occurrences is crucial for preserving sales, maintaining a strong reputation, and fostering positive customer relationships. Here are some strategies to help minimize declines:
Engage with Issuers and Customers
Enhance the checkout experience by collaborating with card issuers. Effective communication can help ensure that unusual transactions are processed smoothly. Proactively reach out to customers about updating payment details, particularly for recurring charges, to reduce instances of failed transactions.
Automate Account Updates
Leverage technology to streamline the updating of customer payment information. Services like Visa Account Updater provide merchants with real-time access to updated card details, eliminating the need for manual follow-ups.
Minimize Merchant Errors
Pay close attention to potential mistakes that can lead to declines. Common issues, such as invalid merchant codes or transaction limits, often stem from misconfigured terminals or clerical errors. Regularly check that your systems are running smoothly and that staff are well-trained.
Expand Payment Options
By offering multiple payment methods, you increase the likelihood of successful transactions. Accepting digital wallets, cash, debit cards, and more provides customers with alternatives if one method fails.
