A Comprehensive Guide to Understanding Credit Card Decline Codes

If you’ve ever attempted a transaction and found that your credit card was unexpectedly declined, you know firsthand how frustrating—and sometimes embarrassing—it can be. On the merchant side, these declines can be just as perplexing. Payments that fail to go through can create friction in the checkout process, resulting in lost revenue and unhappy customers. One key to mitigating these issues is understanding credit card decline codes. By decoding these messages, merchants can take proactive steps to smooth out payment hiccups and potentially recover a sale before the customer moves on.

In this guide, we’ll break down what credit card decline codes are, why they occur, and what both merchants and customers can do to address them. Armed with this knowledge, you’ll be better equipped to optimize your payment process, improve transaction success rates, and keep customers satisfied.

What Are Credit Card Decline Codes?

Credit card decline codes are numeric or alphanumeric messages transmitted by the issuing bank or payment processor to indicate why a particular card transaction cannot be authorized. Each code corresponds to a specific issue—ranging from insufficient funds to suspected fraud. When a merchant runs a card, the card’s issuing bank evaluates the transaction in real-time. If everything checks out, the payment is approved. If not, the system sends a decline code explaining the reason.

Common Reasons for Declined Transactions

• Insufficient Funds:

One of the most straightforward declines occurs when a cardholder doesn’t have enough money or credit available to cover the purchase. This often triggers a code such as “51” (Insufficient Funds).

• Card Information Errors:

Inputting incorrect card details (such as the CVV code or expiration date) can lead to declines. Typographical errors, outdated card numbers, or expired cards will cause the transaction to fail.

• Suspicious Activity or Fraud Alerts:

If the issuing bank suspects that a transaction isn’t in line with the cardholder’s typical spending patterns—perhaps due to unusual geographic location or a very large purchase—it may block the sale. These declines are often tied to codes that indicate suspected fraud or restricted card usage.

• Technical or Connectivity Issues:

Sometimes, the problem isn’t with the cardholder’s account at all. Network errors, processor downtime, or terminal malfunctions can all result in declined transactions. These codes typically encourage a retry or request an alternative payment method.

• Merchant Account Setup Issues:

If a merchant’s payment gateway or processor settings aren’t configured correctly—or if the merchant account is on hold—transactions may fail. These errors often point the merchant toward contacting their processor or support team.

Decoding the Most Common Credit Card Decline Codes

While each card network and issuing bank has its own list of decline codes, many are standardized. Here are some frequently encountered codes and their general meanings:

• Code 14 – Invalid Card Number:

This indicates the card number entered doesn’t match what’s on file at the issuing bank. Double-check the number and try again.

• Code 51 – Insufficient Funds:

The account doesn’t have enough balance or available credit. The cardholder may need to use another payment method or deposit additional funds.

• Code 57 – Transaction Not Permitted to Cardholder:

The issuer has restricted this type of transaction. The cardholder should contact their bank to learn why.

• Code 62 – Restricted Card:

The card can’t be used for the transaction in question. It may be closed, reported lost/stolen, or have other usage limits imposed.

• Code 91 – Issuer or Switch Inoperative:

A technical issue is preventing authorization. The merchant might try again later or ask the customer to use another form of payment.

How Merchants Can Reduce Decline Rates

1. Keep Information Up-To-Date:

Make sure your payment gateway and merchant account settings are properly configured. Update expiration dates, regularly test your checkout process, and keep all integration software current.

2. Communicate with Customers:

When a customer’s transaction is declined, consider displaying a friendly message encouraging them to verify their card details or try another payment method. Offering immediate support can turn a frustrating experience into a quick resolution.

3. Have a Contingency Plan:

If technical issues arise, it’s helpful to have backup payment methods or terminals ready. Offering alternative payment options like digital wallets or ACH transfers can help preserve the sale.

4. Monitor Transactions and Trends:

Keep track of decline codes and watch for patterns. If a particular code appears frequently, it may indicate a recurring issue that you can address—whether that’s updating terminal software or tightening fraud controls.

5. Regularly Review Fraud Prevention Measures:

Too-stringent fraud filters can cause legitimate transactions to fail. Conversely, too-lenient measures may let suspicious charges slip through. Finding the right balance can improve your approval rates and reduce overall declines.

Empowering Your Business with Payment Insight

While credit card decline codes might seem like a minor detail, they can have a major impact on the customer experience and your bottom line. By understanding what these codes mean and taking proactive steps to address their underlying causes, merchants can streamline their checkout processes, reduce abandoned carts, and maintain positive relationships with their customers.

At PayKings, we’re committed to helping you navigate the complexities of payment processing—from understanding decline codes to optimizing your merchant account for maximum efficiency. With the right strategies and partners on your side, you can transform confusing error messages into opportunities for growth, trust, and streamlined sales.