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Why do Online Payments Fail?
Why do Online Payments Fail?

This article is iterative and lists the types of payment failure, the reasons why they fail, and how to troubleshoot it

Updated over a week ago

Audience

Internal and External - Operators, Support Team, Account Managers, Engineers, & Product Teams

Description

This article is iterative and lists the types of payment failure, the reasons why they fail, and how to troubleshoot it

What are the reasons for a payment error message?

When the consumer starts an online transaction, the payment gateway facilitates the route to and from the payment processor. After running fraud checks and 3D Secure confirmation, the card data gets sent to the acquiring bank (also known as the merchant acquirer). Then, the acquiring bank securely sends the payment information to the card schemes. Also known as card networks (i.e., Visa, Mastercard UnionPay, JCB, and American Express). After another round of security checks, the payment is sent to the issuing bank, where it is then either approved or declined. Then, a message is sent back to the acquirer, and finally, the approved or declined payment message is sent to the merchant. All these steps happen in a matter of milliseconds.

What are the different types of payment failures?

Payment failures can be categorized into different types depending on the situation.

Here are a few types of online payment failures:

  1. Online payment failure from the consumer’s side. These errors can happen when a customer provides incorrect card details, the wrong one-time password (OTP), or insufficient funds in their account. It’s also referred to as an incomplete payment.

  2. Online payment failure from the merchant’s side. These types of failures can happen when there is a technology or security error that the seller is responsible for.

  3. Online payment failure when there is a data transfer error. This happens when the customer receives a payment failure message, but the payment eventually goes through, so the cardholder’s account gets debited.

  4. Online payment failure when the amount is not charged. This means the payment failed, and the customer’s account was not debited.

Steps to help troubleshoot payment errors

  • Insufficient funds - check bank statement. If funds are available, contact the bank institution for assistance on what steps to take.

  • Invalid card number - Refresh the page and try to retype the credit card number. If it still doesn't work, please reach out to the credit card issuer for assistance

  • Invalid expiry date - Refresh the page and try to retype the expiration date again. If it still doesn't work, please reach out to the credit card issuer for assistance

  • Invalid CVV - Refresh the page and try to retype the CVV. If it still doesn't work, please reach out to the credit card issuer for assistance

  • Debit blocks placed on the card - talk to the issuing bank

  • Worn-out chip or magstripe on the card - (in-store only) - Try to swipe again after cleaning the magstripe. If it still doesn't work, please get in touch with the credit card issuer for assistance.

  • Suspected fraud (SIFT)

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