As we are also shoppers, we have experienced payments being declined for ourselves. It is frustrating and annoying no matter how it is caused or who’s fault it may be. The only good news is that it is relatively easy to find out why. We may not like the answer, but at least it is easy to get it and to apply a fix. With our growth of online business over the last 18 months, we have seen an increase of payment failed notices. This has prompted us to make this blog post to help go over some known causes why a customer may experience this.
About our payment processor:
We use STRIPE INC for our payment gateway. They are a very cutting edge tech oriented gateway that was created to improve security for eCommerce and be as affordable for small businesses as Square and PayPal. Because of the security measure they have instituted into their platform, they are also far more secure for the consumer and the seller. Stripe implements many layers to validate the customer’s identity and authenticity of their payment method and the information they provide.
Lack of Funds/Over Limit:
We have all been there, either we pulled out the wrong card to use; maybe it was because the last payment wasn’t processed yet, or an automatic charge went through that we forgot about. Possibly another person on the account bought a big new gift for you so they haven’t told you about the charge. In any case, this is often the biggest culprit. When this happens it is caught right away and we go to a different card and all is better. If it that other card is also declined there may be another issue.
Here are some of the less common causes which we have learned about:
The account had a hold placed upon it for possible fraud. Often you get notified for this immediately, but in some cases the bank is a little slow and meanwhile you are trying to do some shopping. I have had this happen while on vacation. Went to grab lunch after I flew in to town to have my card declined. Moments later I get a text telling me that there was questionable activity on my account. That activity? trying to use my card to buy lunch while on vacation. Usually a quick call to your bank will fix handle this. If the fraud is legit, it may take a few days to be able to shop again.
The identity validation protocols our payment processor utilizes public data sources as well as credit systems to determine that your name, address, email, phone number, and payment information is in sync. It can even determine if the IP address is legit. When the data is out of sync, it will deny the payment. Sometimes this is easily caused by a typo. Mishit a key, and you added a letter to your name or entered a wrong digit to your zip code. Did you recently move or change your address? The BILLING address you enter is matched to the address the bank has for you. If you changed address, and you updated your address with your bank, it may take a little time for the change to make its way through the system. The bigger the bank, usually the quicker it happens.
Too many declines: Our payment processor will track a customer’s payment usage. If they attempt to put through too many declined payments, they will get blocked and flagged for other Stripe users. Some scammers will try to use a list of credit card details they acquired from the internet and will keep trying them until one works. This security measure prevents a user from continuing their attempts which will protect further fraudulent use.
What to do if you believe this is a why your payment was declined: When entering your billing information if you have very recently changed your address, try the former billing address with your order. Keep the shipping address for where you wish to receive your order, the shipping address is not highly ranked for fraud detection if within the same country. If this works, you should be all set.
What we can do to help:
Honestly, there is nothing we can do to reverse any declined payment. As part of keeping your credit and payment methods safe, there is no ability for us to find out exactly why your payment was rejected. If you payment is rejected, you will need to contact the issuing bank for your card. Once the bank hears from you they can start an investigation if the cause is not immediately known. If necessary, the investigation could lead them to our payment processor to sort out any issues. There is likely no need for either to contact us, but if so we are available to assist in any way necessary.
As a protection policy of ours, we will not take payment by phone or email. Manually entered payments are not secured or backed by our bank if there is any issue with the payment. There is a common fraud scam where people will request payment to be entered manually, knowing they are using someone else’s card details. If we go through with this, we lose out on payment. By the time this is caught, the scammer already received their order and we are out the cost of shipping and the goods. The security protocols on payment processing through our processor only works when a customer enters all the data, not when we do it. The only means we have to receive payment is through our website. In very special situations, for an added fee, we will send an electronic invoice to a customer where they can secure apply their payment details.
We strive to be respectful of all and protect everyone as much as possible. We also must protect ourselves in these situations. By having a strict policy for payment processing we prevent you from being a victim as much as we protect ourselves. If you ever have a concern about your payment method, please contact us at customer support – email@example.com