Resolving Declined Payments and Troubleshooting Card Payment Issues
When handling card payment issues, understanding the reasons behind declined transactions, processing delays, and system errors is crucial. This guide will walk through common scenarios and their solutions.
Resolving Declined Payments
Updating Payment Information
Declined payments may occur due to outdated or invalid card details. To address this:
Send customers a card update link so they can provide updated card information. Once done, the system will reattempt the payment.
Alternatively, you can retry the transaction manually via Reports > Past Due Memberships.
For credit card payments, navigate to the student’s profile, go to "Invoices/Payments," and select "View Invoice" to process the payment. If the issue persists, suggest the cardholder contact their bank.
For declined EFT/ACH transactions, access the "Returned EFT Stats" on the dashboard and resubmit the payment for approval.
If the decline is due to insufficient funds, notify the customer to provide a new payment method or deposit sufficient funds for the payment to process.
Using Notifications for Failed Transactions
To keep customers informed, enable SMS and email notifications for declined transactions by navigating to Settings > Membership Settings > Settings and turning on the "CC Decline Email and SMS" feature. This will notify clients via SMS and email about failed payments.
General Decline Messages
A "Your card was declined" message is a general bank response, meaning the charge could not be authorized. The cardholder should reach out to their bank to understand and resolve issues such as security blocks, insufficient funds, or card-specific restrictions.
Addressing Card and Bank-Specific Issues
Certain declines occur due to bank restrictions or security measures. For example:
The issuing bank may flag transactions as suspected fraud.
The card's service code may restrict the type of payment being attempted.
Specific decline codes like "do not honor" indicate a bank restriction, requiring the cardholder to contact their bank.
Payments may fail if there are changes to the card details between transactions. The cardholder should verify the card details with their bank.
In such cases, customers should contact their bank to remove restrictions or resolve flagged transactions.
Payment Method Configurations
For Family Memberships
If payments aren’t processed for family memberships, ensure the payment method is set to auto charge. Payments will not process automatically unless this step is completed.
Understanding Automated Payment Delays
On busy days, such as the 1st of the month, automated payment processing may take longer due to high volumes. Payments usually process within the day, but delays can extend to early afternoon. Manual payments during this time will not disrupt automated transactions. However, patience is advised as all queued payments will process sequentially.
Testing Payment Systems
When testing payments:
Perform a small transaction, such as $1, through the POS to ensure funds transfer to your bank account properly.
Verify your payment gateway connection by processing a test transaction. Successful processing confirms the gateway is correctly set up.
Key Limitations
Transactions cannot be forced to process if declined due to insufficient funds. Payments in such cases will fail without overdrawing the customer's account.
Accept alternative payment methods such as wire transfers, checks, or cash to handle high-volume declines.
Use pre-authorization holds to confirm fund availability before processing payments.
Encourage customers to provide at least two forms of payment to reduce the risk of declines.
FAQs
What should I do if an EFT/ACH payment fails?
Contact VeriCheck, the service provider for EFT/ACH transactions, for assistance. Visit their website at www.VeriCheck.com or email them at support@vericheck.com.
Why was my credit card declined?
There might have been an error in the credit card processing setup. Ensure the setup is correct to allow transactions to process normally.
Resolve payment issues by addressing insufficient funds, correcting configurations, and ensuring customers are informed about transaction statuses. By following these steps, common payment discrepancies can be minimized.