My client's credit card declined!
If you have customers with credit issues, you're going to get some declines. In this article, we’ll share valuable tips on how to handle declined credit cards.
Table of contents:
What to tell a customer whose credit card has declined
Be understanding and calm. Everyone has had a credit card decline, so try to show compassion.
Explain to the customer that their bank has declined their card.
Ask the customer to either try another card or call the number on the back of the card to ask the bank why they're declining the card.
What if the customer says "Try it again, the card is fine. I have money!"
If the card just declined a few minutes ago, the bank has already made that decision. There are many reasons for a card to decline. Many of those reasons have nothing to do with available funds, so again, the choices are simple:
Ask the client to try another card if possible.
Ask them to call the number on the back of the card to ask the bank why they're declining the card. Some cards may have restrictions placed by the bank or the card issuer and they need to be resolved first before the card can be used.
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If you solicit from or service customers outside of the state where you reside, you must comply with the Telemarketing Sales Rule (“TSR”). For more information regarding the TSR, you can visit the FTC's website: https://www.ftc.gov/business-guidance/resources/complying-telemarketing-sales-rule. CRC's statements are not legal advice. You should seek legal advice to ensure compliance.
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Marketing Disclaimer: You, and not CRC, will have sole responsibility to review your marketing and collection efforts relating to the |services you provide. Also, you, and not CRC, must confirm that your marketing and receipt of fees are compliant with applicable state and federal laws.
Common credit card decline messages and what they mean
Decline Code | Type | Reason |
200 | The transaction was declined by the processor. | The customer's bank is unwilling to accept the transaction. The reasons for this response can vary – the customer will need to contact their bank for more details. |
201 | Do not honor. | The customer's bank is unwilling to accept the transaction. The customer will need to contact their bank for more details regarding this decline. |
202 | Insufficient funds.
| The account did not have sufficient funds to cover the transaction amount at the time of the transaction. |
203 | Over limit.
| The attempted transaction exceeds the withdrawal limit of the account. The customer will need to contact their bank to change the account limits or use a different payment method. |
204 | Transaction not allowed. | The customer's bank is declining the transaction for unspecified reasons, possibly due to an issue with the card itself. They will need to contact their bank or use a different payment method. |
Other important tips
When in doubt, remind yourself that you're helping customers with credit issues, and as such, some will have payment issues.
Remember that you're dealing in volume and these clients each take 5 minutes a month, so just stay focused on getting more clients and keeping your paying clients. Also, spend time with them on credit education, so they can learn how better to manage their credit long after your work is done. Here's a great link for that.
The quality clients will come from referrals. Make friends with every mortgage broker, realtor, and CPA in your area. That will bring you a great clientele. People getting ready to buy a house and just want a bump up on their score are the ideal client.