Credit card declines can be frustrating for both you and your customers, but they're a normal part of processing payments. The good news is, most declines can be resolved quickly!
This guide will help you understand the common reasons why credit card transactions are declined and what steps you can take to get your payments processed smoothly.
In this article
How credit card declines work
When a customer uses their credit card, the transaction goes through several parties, including your payment processor (Helcim), the card network (like Visa or Mastercard), and the customer's bank (the issuing bank).
| It’s the issuing bank that ultimately approves or declines the transaction. They do this to protect the cardholder from fraud and to ensure there are sufficient funds or credit available. |
Most banks don't share detailed reasons for declines to prevent fraudsters from "testing" cards. This is why the decline messages you see are usually general.
Viewing decline reasons in Helcim
When a transaction is declined, you can quickly see the reason directly in your Helcim account.
From the All Tools menu, select Payments.
Transactions will open by default.
Select the specific transaction you wish to view.
A transaction details drawer will open from the right, and at the top of the drawer, you’ll see: “Declined - [your decline reason]”.
Common reasons for credit card declines
Here are the most frequent reasons you might encounter a credit card decline, along with what they mean and what you can do.
Declined (ND - normal decline)
What it means: This is a general decline from the customer's bank. It's often due to insufficient funds or a restriction placed on the card. The bank doesn't provide a specific reason.
What to do: Ask the customer for another form of payment. Advise them to contact their bank to understand why the transaction was declined.
Insufficient funds
What it means: The cardholder's bank account does not have enough funds to cover the transaction.
What to do: Ask the customer for another form of payment or have them add funds to their account.
Do not honor
What it means: The cardholder’s bank is unwilling to accept the transaction. This is a definitive decline.
What to do: The customer will need to contact their bank directly for details. You should request an alternative payment method.
Pick up card
What it means: This means the card has been taken out of circulation, either because it was lost and replaced, or was reported stolen. This can be a warning sign that a customer is trying to process a fraudulent transaction using a stolen card.
What to do: In a card-present situation, you should ask for an alternative payment method. You should be cautious, review tips on preventing card-present fraud, and prioritize your safety. In a card-not-present scenario, this response could indicate a stolen or lost card is being used, and you should be cautious about dealing with such customers.
Invalid card number
What it means: The card number entered is incorrect. This will most likely happen if a card is being keyed in. This can also mean the system completed a MOD10 check (a formula used to validate identification numbers) and the formula was unable to validate the card numbers.
What to do: Double-check the card number with your customer and re-enter it carefully.
Expired card
What it means: The expiration date entered is past the expiration.
What to do: Ask the customer for a different card or the updated expiry date if it's a new card being used.
Security violation / invalid CVV / incorrect CVC
What it means: The CVV/CVV2/CID code (the 3 or 4-digit security code on the card) was not entered correctly.
What to do: Ask the customer to re-enter the correct security code.
| This may also show up as a ‘DECLINED 82’ message in some situations. |
Transaction not permitted
What it means: This error occurs if you are attempting a transaction and a merchant’s account isn’t configured properly , or if there are restrictions on the customer's card. For example, some credit cards, especially business and corporate cards, can have restrictions on the type of purchases that can be made. Each merchant account has a SIC (standard industry code) associated with it, and a specific SIC could be prohibited from charging certain types of cards.
What to do: For customer card restrictions, the cardholder would need to contact their issuing bank to unlock the card. If you suspect an issue with your account setup, contact Helcim Support.
Invalid amount
What it means: The transaction amount entered is invalid. This mostly occurs when a transaction is run with a negative amount or an ineligible symbol.
What to do: Correct the transaction amount and try again. Ensure no negative values or special characters are used.
Activity limit exceeded
What it means: The cardholder has a limit attached to the card and the transaction would put them over that limit. This could also be indicated by ‘code 61’ (exceeds withdrawal limit).
What to do: Ask the customer for another payment method, or they can contact their bank to adjust their limit.
Currency not supported
What it means: The cardholder's card doesn’t support the currency the transaction is in. For international transactions, some credit cards can have restrictions by default to decline all international payments.
What to do: The customer would need to call their issuing bank (the number can be found on the back of the card) and let them know they are trying to process an international transaction. The bank will "unlock" the card, and you can try processing it again.
Incorrect PIN
What it means: The PIN number that the customer entered on the card terminal is incorrect.
What to do: Have the customer re-enter their PIN correctly.
AVS failure (address verification system)
What it means: If you receive an AVS decline code, it could indicate a mismatch between the billing address provided by the customer and the address on file with the issuing bank. Payment processors and issuing banks ask for the customer's address to compare it against the one they have on file to protect the cardholder from fraudulent transactions.
AVS A: The street address matches, but the postal code does not.
AVS R: Refers to an indeterminate outcome, retry, and may apply when the format is incompatible, the address information is not verified, or the system is unavailable or has timed out.
AVS U: Means unable to verify.
AVS Z: Refers to a partial match on the postal code only.
What to do: This decline means that the transaction should not be processed, as it may be a warning sign of potential fraudulent activity. Providing additional fields for shipping addresses different from the billing address may help prevent auto declines on AVS checks. Although they can sometimes result in inconvenient declines, AVS systems can also help prevent card attacks and lower your processing rates since you will reduce your risk of fraud.
Suspected fraud (e.g. 200, 201, 203)
What it means: The transaction has been flagged as suspicious by the bank. This doesn't always mean the cardholder is a fraudster. It may mean that the transaction amount is unusual, they've made more transactions than usual that day, or some other change in activity such as traveling. Common codes include 200 (Decline - suspected fraud), 201 (Call issuer - suspected fraud), and 203 (General decline - suspect fraud).
What to do: This is a strong warning sign. You should not process the transaction. You might ask the customer for another payment method. The customer may need to contact their bank to clear the flag. Following best practices for card-present and card-not-present transactions can reduce your risk of processing a fraudulent transaction.
Call for auth
What it means: This is a normal decline, but there is a pathway for a potential approval. In this case, the bank is unsure about the transaction.
What to do: Contact Helcim Support. Helcim will need to reach out to our payment processing partner, Elavon, for further verification. If approved, an approval code will be provided for the transaction.
Tips for handling declined transactions
Don't repeatedly try the same card | If a card declines, especially with a general decline message, avoid trying to process it multiple times. You will continue to receive decline messages, and your merchant account may be flagged for potential fraud or abuse. Instead, ask for an alternative payment method. |
Avoid "testing" with smaller amounts | Processing a transaction for a smaller amount after a decline may be seen as "testing" the card limit, and the transaction may be flagged for fraud. Instead of trying the transaction again at a lower amount, ask for another payment method from the customer. |
Encourage customers to contact their bank | For many decline reasons, the customer's bank is the best source of information. Advise your customer to call the number on the back of their card. |
Be understanding and empathetic | Declines can be embarrassing or frustrating for customers. A calm and helpful approach can de-escalate the situation. |
Address verification system (AVS) | Use services like AVS to help determine the validity of transactions and avoid processing fraudulent transactions. |
International or restricted cards | For international transactions or certain business/corporate cards, customers may need to call their issuing bank (the number is usually on the back of the card) to allow the transaction or "unlock" their card for specific purchase types. |
Next steps
Review your Helcim transaction history: You can always check the details of a transaction in your Helcim account to see the specific decline message.
Update customer information: If the decline was due to incorrect card details, ensure you update your customer's profile with accurate information if they provide it.
Explore other payment options: Helcim offers various ways to accept payments. Consider offering alternative payment methods like ACH payments.
FAQs
Why does the bank not tell me the exact reason for the decline?
Issuing banks typically keep specific decline reasons private to protect cardholders and prevent fraudsters from "testing" card numbers to discover vulnerabilities.
Should I always ask for another payment method after a decline?
Yes, for most general declines, asking for an alternative payment method is the most efficient way to complete the transaction. The only exception is for "call for auth" messages, where Helcim will contact our processing partner to see if the transaction can be approved.
What's the difference between "declined" and "do not honor"?
"Declined" is a general message from the bank. "Do not honor" is a more definitive refusal from the bank, meaning they are unwilling to accept the transaction. In both cases, an alternative payment is recommended.
Can a declined transaction impact my Helcim account?
Repeated attempts to process a card that has been declined can potentially flag your merchant account for suspicious activity. It's best to avoid multiple attempts on the same card after a decline.