Have you ever experienced an embarrassing moment at the checkout counter when your credit card gets declined? It happens to the best of us, but understanding the reason behind the decline can save you the hassle and embarrassment in the future. In this article, we'll delve into the world of decline codes, what they mean, and share a realistic example to help you make sense of it all. So, say goodbye to those awkward checkout moments and become a knowledgeable Flik Eco credit card expert!
Decline Codes For Credit Cards Table of Contents
What are Decline Codes?
A decline code is a code provided by the issuing bank when a credit card transaction is rejected. These codes give a clear explanation of why the transaction was declined and are useful for merchants and cardholders to understand the issue and take appropriate action. There are several types of decline codes, each relating to a different reason for the decline.
Common Credit Card Decline Codes and Their Meanings
While each issuing bank may have its own decline codes, there are some common codes used by most. Here are some of the most common decline codes and their meanings:
- 01 - Call Issuer: This decline code indicates that the issuing bank requires the merchant to call for further instructions. It may be due to suspected fraud or other suspicious activity.
- 05 - Do Not Honor: The issuing bank does not recognize the transaction as legitimate and thus, declines the transaction. This can happen due to expired card, insufficient funds, or card security limitations.
- 14 - Invalid Card Number: This code shows that the card number entered is incorrect, or the card doesn't exist. Double-check the card details and try the transaction again.
- 41 - Lost Card: The card has been reported as lost by the cardholder and can no longer be used for transactions. The cardholder should contact their issuing bank for a replacement card.
- 43 - Stolen Card: This code indicates that the card has been reported as stolen and should not be accepted for transactions. The cardholder must contact their bank for further assistance.
- 51 - Insufficient Funds: The cardholder's account does not have enough available funds to complete the transaction. In this case, using an alternative payment method or waiting until funds are available is advised.
- 54 - Expired Card: The transaction cannot be processed as the card has passed its expiration date. The cardholder should obtain a new card from their bank.
- 61 - Withdrawal Limit Exceeded: The transaction cannot be processed because the cardholder has exceeded their daily withdrawal limit. The cardholder may try again the following day or contact their bank to inquire about adjusting the limit.
How to Handle Credit Card Declines
Now that you're familiar with common decline codes, it's essential to know how to handle them:
- Check the decline code and understand the reason for the decline.
- If the issue lies with the card details, such as an incorrect card number or expiration date, ask the cardholder to double-check the information.
- For lost, stolen, or expired cards, the cardholder must contact their bank for assistance.
- If the decline is related to funds or limits, suggest trying an alternative payment method or waiting until funds become available.
- Encourage the cardholder to contact their bank if they're unsure about the reason for a decline, as some issues can only be resolved by the issuing bank.
Decline Codes For Credit Cards Example:
Imagine you're at your favorite clothing store and found the perfect outfit for an upcoming event. You head to the checkout counter, hand over your credit card, and eagerly await the approval. However, the cashier hands the card back, saying, "I'm sorry, but your card has been declined." They provide you with a decline code: 05 - Do Not Honor.
In this scenario, you may decide to call your bank or check your account balance through an app. If it turns out you have insufficient funds, you could opt to use an alternative payment method or hold off on the purchase until your balance can cover it.
Credit card declines can happen to anyone, but they don't have to leave you feeling embarrassed or helpless. Understanding decline codes gives you the knowledge to take control of the situation and find the best solution for both you and the merchant. Share this insightful Flik Eco article with your friends and family, so they too can navigate the world of credit card declines with ease. Ready for more expert advice from Flik Eco? Dive into our extensive library of articles covering all aspects of personal finance, from banking to investing, and everything in between!
