Common Card Decline Reasons and How to Resolve Them
When processing card payments, merchants may encounter various decline reasons. Understanding these reasons and their resolutions can help ensure smoother transactions and better customer service. Below, we explain two common decline reasons and provide actionable steps for merchants to address them.
Decline Reason: "Invalid Account Number (No Such Number)"
This decline occurs when the card issuer cannot validate or recognize the card or account number provided in the authorization request. Common causes include:
Incorrectly Entered Card Number: A mistyped or missing digit during manual entry can lead to this error. Resolution: Verify the card number with the customer and re-enter it carefully.
Corrupted or Unreadable Chip Data: EMV chip cards may send incomplete or incorrect data. Resolution: Try processing the card using another terminal or use swipe/tap methods. If the issue persists, the card may need to be replaced.
Card Expired or Replaced: The card number may belong to a canceled or replaced card. Resolution: Request the customer to use their current card.
Invalid BIN or Unrecognized Card Range: The card's BIN (Bank Identification Number) does not map to a known issuer. Resolution: Confirm that the card type is supported by your payment processor.
Test/Dummy Card Used in Production: Test cards are not valid for live transactions. Resolution: Ensure the customer uses a live, valid card.
Card Data Formatting Error in POS/Gateway: The card number may be sent incorrectly due to integration issues (e.g., truncated or padded data). Resolution: Review device logs and ensure data formatting aligns with processor requirements.
Decline Code 05: "Do Not Honor"
This is a general decline issued by the cardholder’s bank, not by Valpay or the payment processor. It indicates that the bank has refused the transaction without providing a specific reason. Common causes include:
Suspected Fraud or Unusual Activity: The bank may flag the transaction as suspicious. Resolution: Ask the customer to contact their issuing bank to resolve any blocks or suspicions.
Insufficient Funds: The customer’s account may not have enough funds to cover the transaction. Resolution: Suggest the customer use a different payment method or ensure sufficient funds are available.
Flagged or Temporarily Blocked Card: The card may be temporarily disabled by the bank. Resolution: Advise the customer to contact their bank to lift the block.
Transactions Outside Normal Spending Patterns: The transaction may not align with the cardholder’s usual spending habits. Resolution: The customer can request their bank to manually authorize the transaction.
Daily or Transaction Limits Reached: The cardholder may have exceeded their allowable limits. Resolution: Suggest the customer contact their bank to adjust their limits or use another card.
Important Note
Decline code 05 does not indicate an issue with the merchant’s Valpay or payment processor setup. The transaction is stopped by the card issuer.
Conclusion
By understanding these common decline reasons and their resolutions, merchants can better assist customers and minimize disruptions during transactions. For persistent issues, consider reaching out to your payment processor for further support.