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Handling card declines
Updated over a week ago

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. Make sure they are using a credit card. Debit cards are not allowed.

  • Ask them to call the number on the back of the card to ask the bank why they're declining the card.

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.

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.

Credit Repair Cloud requires that all customers comply with the TSR and any other applicable laws and regulations to continue using its software.

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.

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.

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