A decline message can also include a rejection reason received directly from the issuing bank. The most common ones associated with online crypto transactions are the following:
Suspected Fraud
Cause: This decline occurs when a financial institution or payment processor suspects that the transaction might be fraudulent. Triggers can include unusual spending patterns, high-value transactions, or transactions from uncommon locations.
Resolution: The customer should contact their bank or card issuer immediately to verify the transaction and confirm their identity. The bank may request additional information or confirm recent transactions. Ensuring that contact information with the bank is up to date can help avoid delays in communication.
Insufficient Funds
Cause: This decline happens when there isn't enough money in the account to cover the transaction amount.
Resolution: The customer should check their account balance to ensure sufficient funds are available. If the account balance is low, depositing more money or using a different payment method may be necessary. Setting up alerts to monitor the balance regularly can help avoid such issues in the future.
Do Not Honor
Cause: This is a general decline code indicating that the bank or card issuer has declined the transaction for unspecified reasons.
Resolution: The customer should contact their card issuer for more details about why the transaction was declined. The issuer can provide specific information and guidance on how to resolve the issue. Sometimes, using an alternative payment method can circumvent this problem.
Transaction Not Permitted to Cardholder
Cause: This decline occurs when the transaction is not allowed based on the cardholder's account settings or card type restrictions.
Resolution: The customer should check with their card issuer to confirm the types of transactions permitted on their card. Updating card settings or using a different payment method may be required. Ensuring that the transaction aligns with the card's usage policy is important.
Policy
Cause: A transaction may be declined due to specific policies set by the card issuer or payment processor, which could relate to transaction limits, merchant categories, or geographic restrictions.
Resolution: The customer should review the card issuer's policies or contact customer service for clarification. Understanding these policies can help adjust spending habits or encourage the use of alternative payment methods compliant with the policy.
Limit Exceeded
Cause: This occurs when the transaction amount exceeds the card's available credit limit or spending limit set by the issuer.
Resolution: The customer should review their credit or spending limits with the card issuer. If necessary, requesting a limit increase or reducing the transaction amount to fit within current limits may resolve the issue. Regularly monitoring spending helps in staying within established limits.
Invalid Transaction
Cause: This decline happens when the transaction details are incorrect or invalid, such as an incorrect card number or an expired card.
Resolution: The customer should double-check the transaction details for accuracy. Ensuring that the card information entered is correct—including the card number, expiration date, and CVV code—is crucial. If the card is expired, requesting a new one from the issuer is necessary.
Blocked, First Used - New Cardholder
Cause: This decline can occur when a new cardholder attempts their first transaction and the card issuer has not yet fully activated or verified the card.
Resolution: The customer should contact their card issuer to activate the card or verify their identity. Completing all required activation steps is important. Making a small transaction first to confirm that the card is active may also be helpful.
Transaction Denied: The Card Has Not Been Authenticated
Cause: This decline indicates that the transaction could not be completed because the cardholder's identity has not been authenticated, possibly due to issues with 3D Secure or similar authentication processes.
Resolution: The customer should follow the authentication process outlined by the card issuer or payment processor. If issues persist, contacting the issuer's customer service to resolve any authentication problems is advisable. Ensuring that all verification steps—such as entering one-time passwords (OTPs) or security codes during the transaction process—are followed is essential.
By understanding these common declines and how to address them, customers can minimize disruptions to their crypto purchase or sale experience and ensure a smoother checkout process.