Failed Payment Reasons: Why do some payments fail?

failed payments reasons“Do my customers think I’m running a charity?”

When you get the news that one of your payments has failed, it can be a definite downer to your day. The bank gets back to Ezypay and we are provided with a reason code for the unsuccessful payment from the bank and nothing else. It can leave some people saying, “But what do all these failed payment reasons even mean?”

Here is a list of these failed payment reasons, what they mean and possible subsequent actions that you can take to make sure that you get your due payments.

Failed payment reasons:

  • Insufficient funds
  • Unspecified
  • Incorrect account details
  • Account closed
  • Expired credit card
  • Authority not held
  • Bank reversal

Read: How to avoid failed payments 101

Let’s investigate further into these failed payment reasons, what they mean and how you can rectify it.

Failed payment reasons: Insufficient funds

Meaning: When Ezypay receives the notice that there are insufficient funds, it means that the member did not have the sufficient funds at the time the debit was attempted.

Payment Options:

Failed payment reasons: Unspecified

Meaning: When a member’s payment is rejected and labelled as unspecified in each of these cases, the member’s banks are returning a rejection code stating that the member must contact their bank. This indicates an error or problem from the card issuer (the member’s bank). The problem may be related to one of the following failed payment reasons:

  • Suspected fraud
  • Stolen or lost card
  • Minimum monthly payment not made
  • Bank system error
  • The member’s card is not able to accept transition, e.g. card not present limit
  • The member’s card has not been set up to accept recurring direct debits
  • International transactions are not accepted
  • Any other reason specified by the issuing bank

Payment options:

Failed payment reasons: Incorrect account details, account closed, expired credit card


Incorrect account details: The member has supplied or staff has entered incorrect account details into the system

Account closed: The account is now closed

Expired credit card: The members card has expired

Payment options:

Updating details option:

Failed payment reasons: Authority not held

Meaning: The member has placed a stop on future debits for processed by Ezypay

Payment options:

Future payments:

  • Contact bank to remove the stop on the account
  • Pay club in cash

Failed payment reasons: Bank reversal

Meaning: The member has made a dispute on the debit directly with their bank

Payment options:

Hopefully this clears up any queries regarding failed payments. If you would like more information on your failed payments with Ezypay, please do not hesitate to contact us for further assistance.

The best way to manage failed payments is to avoid them in the first place. Learn more about how to avoid failed payments here.

Download your FREE eBook: 31 tips, 31 days to have a better cash flow. Click here.


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