6 Most Common Credit Card Decline Codes and what they Mean

If you've ever had a transaction declined, you know how frustrating it can be. But did you know that there are different credit card decline codes? From a simple typo to potential credit card fraud, these codes can tell you why your transaction was declined and what you can do about it. In this article, we'll look at some of the most common credit card decline codes and what they mean. We'll also give you tips on how to avoid declined transactions.

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What are credit card decline codes?

When a transaction is processed, it must be approved by the issuing bank and the payment gateway. When a transaction is not approved, the payment processor will return an error message with a two-digit number: the decline code. Credit card decline codes explain why a transaction was declined. Businesses can avoid declined transactions by understanding what these codes mean and taking steps to ensure that all information is correct before processing a transaction.

Hard decline vs. soft decline

Not all credit card declines are equal. A soft decline is usually due to a minor issue, which means you can attempt to run the transaction after the issue has been resolved. With a hard decline, the issuing bank has stopped the transaction or account. The transaction should not be reattempted. These declines are put in place to protect against credit card fraud.

How to troubleshoot common credit card decline codes

Each code has a unique error and solution. In many cases, you will need to instruct the cardholder to contact their bank to resolve the issue, but sometimes you can troubleshoot at point-of-sale. The table below summarizes some of the most common credit card decline codes and how you can troubleshoot them. For a complete list of decline codes, check out Visa’s list.

Credit card decline code	Description	What you can do
05	Do not honor. This code means that the issuing bank has declined the transaction. This can be due to several reasons, including suspected fraud or an incorrect CVV code.	This is a “hard decline.” Ask the customer for another form of payment and have them contact their bank regarding the declined card.
51	Insufficient funds. This code indicates that there are not enough funds in the account to cover the transaction.	Verify that the transaction details and amount charged are correct. If they are, ask the customer for another form of payment.
54	Expired card. This code means that the credit card is expired and can no longer be used	Verify that all the card information is correct. Even one incorrect digit can prevent a transaction.
62	Restricted card. This code means that the issuing bank has restricted the credit card. This can happen for several reasons, including suspected fraud, an unpaid balance, or a geographic restriction.	As a merchant, you have limited options for troubleshooting this code. If you see frequent occurrences from different customers, ensure the Merchant Category Code (MCC) associated with your merchant account is correct. In some cases, payment cards are restricted to certain types of purchases and an incompatible MCC may lead to this error.
63	Security violation. This code indicates that the transaction has been declined due to a security violation. This can be due to several factors, including suspected fraud or an incorrect CVV code.	As a merchant, you have limited options for troubleshooting this code. Consider prompting the customer to use a different payment card or ask them to contact their issuing bank.
65	Activity limit exceeded. This code means that the credit card has been used too many times in a short period of time. This is usually a sign of fraud and the transaction will be declined.	As a merchant, you have limited options for troubleshooting this code. Consider prompting the customer to use a different payment card or ask them to contact their issuing bank.

What to do if a transaction is declined

There are many more potential credit card decline codes you could receive. There’s no single solution that works for every decline code. In many cases, there’s nothing a merchant can do. However, below is a general set of steps you can take that will help you handle credit card decline codes effectively:

Reference the decline code to determine if it has been restricted by the issuing bank (hard decline) or is due to another error (soft decline).
If it is a soft decline, verify that all the card information and transaction details are correct, then try processing the transaction again.
If the code returns a hard decline, do not try to process the transaction again. Ask the customer for another form of payment and direct them to contact their bank to resolve any issues with the declined card.

How to prevent declined transactions

Declined transactions are frustrating for you and your customers. Fortunately, you can take action to avoid declined transactions (and lost sales).

Verify all card information

Before processing a transaction, make sure that all information is correct. This includes the customer's billing information, card number, expiration date, CVV, and purchase amount.

Offer multiple payment options

Another way to avoid declined payments is to accept various payment methods, such as credit cards from different networks and e-payments like PayPal, Apple Pay, and Google Pay.

Protect against fraud

Using a credit card processor that offers fraud protection services is a crucial step in preventing hard declines. These gateways are created with safeguards in place to protect your business and customers from unauthorized transactions. TailoredPay offers secure, affordable payment gateways for high-risk businesses.

Be prepared

Even if you take all of the necessary precautions, there is always a chance that a transaction will be declined. It's important to have a plan in place for these situations. This way, you can avoid losing potential sales and keep your customers happy.

Credit card decline codes: Five key takeaways for merchants

Overall, merchants need to be aware of common credit card decline codes. By understanding what these codes mean, businesses can take steps to avoid declined transactions and provide better customer service. Here are the five key takeaways for merchants when it comes to credit card decline codes:

Be aware of the different types of decline codes and what they mean.
Know the difference between soft declines and hard declines.
Offer multiple payment methods to help customers checkout if there is a problem with one card.
Have a plan in place for when transactions are declined.
Use a payment gateway with fraud protection to limit the risk of chargebacks.

By taking these steps, you can protect yourself and your customers from declined transactions. If you’re a merchant that needs a payment processor with strong fraud detection and chargeback mitigation, contact TailoredPay by completing a simple form and we’ll get back to you within 24 hours!

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