Top 5 reasons a credit card payment fails

credit card payments failIf you are sick of so many credit card transactions that have failed and subsequently wasting your time with having to chase customers up and get your payment back, then you need to know these top 5 reasons a credit card payment fails. And as a bonus, we have even included one simple and easy way to reduce the number of failed card transactions, but we will get to that later.

First up, the top 5 reasons a credit card payment fails

Wrong account details

It can be really frustrating when you have a failed payment and it is because of something as simple and preventable as wrong account details, but it is also a good thing to. This means that when a credit card payment fails because of this, it is something easily fixed and can be prevented for future card payments. You should call the customer and inform them of the wrong account details that they have entered so that they can rectify it. Once it is fixed with the accurate details and this is the only issue, credit card payments should be successful from here on out.

Expired card

An expired card is one of the more popular reasons why a credit card payment fails. While it is annoying, it is also something that can easily be fixed. If your customer’s card has expired, you should inform them asap so that he or she can get on the process of ordering a new card pronto. Once the new card arrives and they update the information accurately (to avoid problem #1), then everything should be good to go.

Reached withdrawal limit

There is a daily credit and withdrawal limit that is placed on credit cards and once this is reached, this blocks the card and any card transactions that they are attempting to process. If this is why their credit card payment fails, then you can attempt to withdrawn from your customer’s account the following day and it should be successful.


Missed credit payments

As your customer’s life gets busier and busier, they may fall behind on paying their bills, and this includes credit card payments. If your customer has missed credit payments, then their bank or provider may block their card until they pay all outstanding debits. If a missed credit payment is why their credit card payment fails, then you may be waiting to get your debt while they catch up on all prior outstanding payments.

International – Blocked by payment gateway or bank

If your customer is trying to make a payment that is international, then a potential reason why a credit card payment fails is because their bank or your payment gateway may see this as unusual and strange and block the transaction just in case. If this is the situation that you and your customer find yourselves in, then it may be beneficial to slightly relax the settings on the payment gateway to allow international transactions for this customer. This is particularly important if your customer is going to stay on as a long-term client so that you don’t come up with this problem every single time. However, do be careful that you don’t loosen the settings too much and risk opening up the space for fraudulent transactions.

Now that you have the top 5 reasons a credit card payment fails, here is your one bonus solution: enlist in a great direct debit billing system such as Ezypay.

Ezypay is one of Australia’s best direct debit billing system with an amazing collection rate of 99.5% We can help you collect credit card transactions without the extra hassle or trouble of dealing with failed payments. With our automatic failed payment process, that you can tailor to suit your preferences, you get your payments, outstanding and all! Are you ready to relax and let Ezypay take care of all the hard work for you? Contact us here if you are and one of our friendly team members will be happy to get you started!

Too many declined credit card transactions holding up your cash flow? Then you need this guide: 31 Tips to Improve Your Business Cash Flow


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