Reasons for failed transactions and ways to avoid them 😉

Introduction

Transactions are an integral part of doing business.They involve a buyer and a seller, both of whom need to adhere to certain rules and regulations in order for the transaction to be successful.

Unfortunately, there are times when transactions fail due to various reasons - but with the right strategies in place, you can reduce the chances of this happening and ensure that your transactions go through without any issues.

Learn what the most common causes of failed transactions are, and how you can work around them, in this article!

















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What is a failed transaction?


When a customer attempts to make a purchase using their credit or debit card, but the transaction is declined, this is referred to as a failed transaction. There are a number of reasons why a transaction may be declined, including:


-Insufficient funds in the account

-The account has been frozen by the bank

-The card has been reported lost or stolen

-The card expiration date has passed

-The billing address provided does not match the address on file with the bank


If you are trying to make a purchase and your transaction is declined, first check to see if there are sufficient funds in your account. If there are, then contact your bank or credit card issuer to find out why the transaction was declined. 

In some cases, a failed transaction can result in an overdraft fee or other penalties.


Common reasons for failed transactions?


There are several common reasons for failed transactions, and understanding these can help you avoid them.

One common reason is insufficient funds. This can happen if you don't have enough money in your account to cover the cost of the transaction, or if you're trying to spend more than your daily limit.


Another reason transactions can fail is because of incorrect information. This includes providing an incorrect address or card number. Be sure to double-check your information before submitting it to avoid this issue.


Finally, some transactions fail because of security concerns. If your card is declined for a suspicious transaction, it's likely because the issuer is trying to protect you from fraud. In this case, you'll need to contact your issuer for further assistance.


What can you do to avoid this and make sure your transaction goes through?


There are a few things you can do to avoid having your transaction fail: 

1. Make sure you have enough money in your account to cover the transaction - This seems like a no-brainer, but sometimes people forget to check their account balances before making a purchase.

2. Use a credit or debit card that is authorized for online transactions - Some cards are not enabled for online purchases, so you'll need to make sure yours is before attempting to buy something online.

3. Enter your card information correctly - This includes the card number, expiration date, and CVV code. Sometimes people mistype one of these numbers, which will cause the transaction to fail.

4. Check the website you're buying from to make sure it's legitimate - Unfortunately, there are many scams out there, so you'll want to do your research before inputting your card information on any site. A good way to tell if a site is legitimate is to look for https in the URL (the 's' stands for secure) and/or a padlock icon next to the URL. These signify that the site is using SSL, which means that your personal and financial information will be encrypted and thus more secure.


Conclusion


Failed transactions can be a huge headache for merchants, but they don’t have to be. By implementing the strategies outlined in this article, you can ensure that your customers have a smooth and hassle-free payment experience every time. With effective risk mitigation protocols and monitoring customer activity closely, you can minimize failed payments and maximize successful ones. Ultimately, these steps will help increase customer satisfaction as well as sales for your business. 


For the best PSPs that suits your business aspirations, check out Pay Agency, a matchmaking platform for PSPs and Merchants that help each other to take their business to the next level.

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