Common Credit Card Decline Codes: How to Fix, Prevent, and Optimize Your Payment Success

Declined payments can cause problems for both businesses and customers. Whether it's in a store, online, or a recurring setup, declines lead to lost sales and customer frustration. Credit card declines happen for various reasons, such as fraud concerns or insufficient funds. Understanding these decline codes helps businesses solve the problem quickly and possibly save the sale.

What Are Credit Card Decline Codes?

Decline codes are numerical responses provided by payment processors and issuing banks when a transaction can't be completed. They’re designed to inform businesses and customers why the transaction was declined. Although these codes aren't entirely uniform across all networks, most follow a standardized system. These codes are issued during the transaction's authorization process, which checks factors like available funds, card validity, and fraud risk. Additionally, many payment processors and gateways, such as ACI, use their own internal codes to provide more detailed insights. These internal codes are often linked to standard issuer codes, offering merchants a deeper understanding of the specific issue at hand.

Why It’s Important to Know Decline Codes

Understanding decline codes is essential for both resolving issues quickly and improving the overall payment process. These codes help merchants identify why a payment was rejected, allowing them to suggest appropriate solutions to customers. Additionally, declines typically occur during the authorization process, where the issuing bank checks available funds, security measures, and the cardholder’s limits.

“We constantly monitor decline codes to better understand the challenges our merchants face. For example, when we see a surge in ‘Insufficient Funds’ or ‘Do Not Honor’ codes, it allows us to advise our clients on proactive measures, like adjusting retry intervals or alternative payment methods. Knowing these codes helps prevent unnecessary revenue loss and ensures our merchants can recover transactions more efficiently.” – Stefan Zisov, COO at CatalystPay

This knowledge not only helps recover potential revenue but also improves communication with customers, fostering better relationships and long-term trust.

Common Credit Card Decline Codes

Here is a list of the most frequent credit card decline codes merchants may encounter:

Code	Description	Explanation
00	Approved	Transaction approved by the issuer.
01	Refer to Card Issuer	Issuer requests further action; customer must contact their bank.
04	Pick Up Card (Lost/Stolen)	The card has been reported lost or stolen; the card should not be accepted.
05	Do Not Honor	The issuing bank refused the transaction.
12	Invalid Transaction	The transaction is not allowed on the card.
14	Invalid Card Number	The card number entered is incorrect or invalid.
28	File is Temporarily Unavailable	The card issuer’s system is temporarily down.
51	Insufficient Funds	The cardholder has insufficient funds to complete the transaction.
54	Expired Card	The card has expired.
57	Transaction Not Permitted	The cardholder's bank restricts this type of transaction.
62	Restricted Card	The card is blocked due to security or fraud concerns.
65	Exceeds Withdrawal Limit	The cardholder has exceeded their withdrawal or transaction limit.
85	CVV Verification Failed	The CVV code entered does not match the bank's records.
91	Issuer Unavailable	The issuing bank’s system is temporarily unavailable.
93	Transaction Cannot Be Completed	The issuer has declined the transaction for an unspecified reason.
R0/R1	Suspected Fraud	The transaction is suspected to be fraudulent and requires further verification.

Addressing Common Credit Card Decline Codes

When a transaction is declined, understanding the specific reason behind it is essential for recovering lost sales. Each decline code points to a unique issue, and knowing how to respond effectively—whether it’s guiding the customer, retrying payments, or adjusting internal processes—can help resolve the problem quickly. Here’s how to address some of the most common decline codes.

1. Do Not Honor (Code 05): Recommend the customer contact their bank for approval or use an alternative payment method.
2. Insufficient Funds (Code 51): Suggest that the customer use a different card or another payment option.
3. Invalid Card Number (Code 14): Ask the customer to double-check the card details and re-enter them.
4. Expired Card (Code 54): Prompt the customer to update their payment details or use another card.
5. Transaction Not Permitted (Code 57): Encourage the customer to contact their bank or use a different payment method.
6. Issuer Unavailable (Code 91): Retry the transaction later or use a different payment method.

Hard vs. Soft Declines: What is the difference

Declines generally fall into two categories: hard and soft.

• Hard Declines are permanent and can't be resolved by retrying the transaction. Examples include expired cards (Code 54) or lost/stolen cards (Code 04). These declines require new or updated payment methods.
• Soft Declines are temporary and may be resolved with retries. Common examples include insufficient funds (Code 51) or issuer being temporarily unavailable (Code 91). Businesses can resolve these issues by retrying the payment later or using different cards.

How Payment Service Providers (PSPs) Help Address Declines

Partnering with a Payment Service Provider (PSP) can significantly reduce credit card declines by offering several key features. PSPs provide advanced fraud detection tools, which help decrease declines related to fraud. They also optimize payment processes through smart transaction routing, ensuring that payments are sent through the most appropriate acquiring bank for approval. Automatic retry systems allow failed transactions to be attempted again, increasing the likelihood of success. PSPs also help businesses monitor their decline rates and other key metrics. Regularly tracking these KPIs can improve business performance by identifying patterns and optimizing payment processes.

“As a PSP, CatalystPay has the tools to respond quickly when declines happen. For instance, when one of our clients saw a high number of declines due to CVV mismatches, we adjusted the checkout flow and verification settings. This reduced the error rate dramatically. We also use smart routing and automated retry systems, allowing us to manage and mitigate declines in real-time, improving transaction success rates for our clients.” – Deyan Bochev, Risk Manager at CatalystPay

Multi-Acquirer Strategy: Reducing Declines Through Smart Routing

A multi-acquirer strategy, which involves working with multiple acquiring banks, can further reduce declines by routing transactions through different banks. If one acquirer declines a transaction, it can be routed to another with a higher approval rate. This strategy is particularly effective for handling soft declines like Issuer Unavailable (Code 91) or Do Not Honor (Code 05). Routing is also beneficial for cross-border payments, where different acquirers may have better success rates based on the region or type of transaction.

Conclusion

Credit card declines are an unavoidable part of processing payments, but understanding decline codes and how to address them can help recover lost sales. By working closely with PSPs like CatalystPay, businesses can significantly reduce declines through advanced fraud detection, smart transaction routing, and automated retry systems. Our multi-acquirer strategy ensures that transactions are routed to the most appropriate bank, further boosting approval rates, particularly in cross-border and high-risk transactions.

Want to reduce payment declines? Contact us today to optimize your payments and increase revenue.