The client has exceeded the established transaction limits
Posted: Sun Jan 19, 2025 6:17 am
Many credit cards have a daily or monthly spending limit, either by dollar amount or by the number of times the card is swiped. A customer may have mistakenly attempted to pay for goods or services at an e-commerce merchant with a card that exceeded the limit. This counter will likely reset on the second or third attempt to charge the card.
4. The purchase is unusual.
A charge that significantly exceeds normal usage - either in dollars or in the form of a purchase - can result in a gradual decline. This is usually considered an indicator of fraud, but it is possible that the cardholder chose to use their card for this purchase.
5. The card is used abroad.
Almost one in five foreign transactions is rejected because the acquiring bank and the issued credit card are not from the same country. E-commerce certainly makes these types of transactions more common, but they are still sometimes blocked out of an abundance of caution.
6. Billing address and IP address do not match.
The online payment solution provider has an effective risk why choose the morocco phone number list? management team that checks the IP address of the computer from which the purchase was made against the billing address associated with the card. If they do not match, the system may reject the credit card payment. (This software can also block the use of a credit card abroad.)
While all of these reasons are fairly easy to resolve, that doesn't make them any less frustrating. What can an online store do to recoup lost revenue?
How to handle declined transactions
Many of the soft rejections described above are due to customer error or ignorance. They are in no way malicious or fraudulent. E-commerce merchants may be happy to know that many of these issues can be corrected by simply contacting the customer.
Here are some ways to minimize the impact of declined transactions and recoup lost revenue:
Request an alternative form of payment from the customer. In cases where there are insufficient funds or the transaction limit has been exceeded, the e-seller can contact the customer directly and speak to them quickly and politely to request an alternative form of payment.
Ask the customer to check the expiration date of the card. In the case of an expired card, these transactions are often approved after the customer confirms the expiration date of their new card with the issuing bank. The customer can also ask the bank to approve the transaction made on the expired or expired card and switch to the new card when it arrives.
Confirm the customer’s location over the phone. A hyper-vigilant risk management team is good for protecting a business from fraudulent transactions, but legitimate transactions can get caught in the mix. By confirming a customer’s travel history or transaction history over the phone, an e-commerce merchant can easily resolve any issues.
Double-check large or unusual purchases with the buyer. If a purchase is rejected due to its unusual size or nature, an e-seller can save a lot of time and headaches by calling the buyer directly and asking for confirmation.
To verify these transactions, the data must be collected before the credit card is processed. If an online store does not do this, it can be resolved by quickly changing the way the information is collected at checkout. A phone number and email address collected and stored before credit card information is processed can prevent headaches in the future.
Opting out of soft transactions is a common but necessary step to protect an e-commerce merchant's revenue from credit card fraud. While the final work to verify these transactions may require some effort, it is worth it if it preserves the revenue generated from these transactions.
Looking for eCommerce software? Check out Platforms' list of the best eCommerce software solutions .
4. The purchase is unusual.
A charge that significantly exceeds normal usage - either in dollars or in the form of a purchase - can result in a gradual decline. This is usually considered an indicator of fraud, but it is possible that the cardholder chose to use their card for this purchase.
5. The card is used abroad.
Almost one in five foreign transactions is rejected because the acquiring bank and the issued credit card are not from the same country. E-commerce certainly makes these types of transactions more common, but they are still sometimes blocked out of an abundance of caution.
6. Billing address and IP address do not match.
The online payment solution provider has an effective risk why choose the morocco phone number list? management team that checks the IP address of the computer from which the purchase was made against the billing address associated with the card. If they do not match, the system may reject the credit card payment. (This software can also block the use of a credit card abroad.)
While all of these reasons are fairly easy to resolve, that doesn't make them any less frustrating. What can an online store do to recoup lost revenue?
How to handle declined transactions
Many of the soft rejections described above are due to customer error or ignorance. They are in no way malicious or fraudulent. E-commerce merchants may be happy to know that many of these issues can be corrected by simply contacting the customer.
Here are some ways to minimize the impact of declined transactions and recoup lost revenue:
Request an alternative form of payment from the customer. In cases where there are insufficient funds or the transaction limit has been exceeded, the e-seller can contact the customer directly and speak to them quickly and politely to request an alternative form of payment.
Ask the customer to check the expiration date of the card. In the case of an expired card, these transactions are often approved after the customer confirms the expiration date of their new card with the issuing bank. The customer can also ask the bank to approve the transaction made on the expired or expired card and switch to the new card when it arrives.
Confirm the customer’s location over the phone. A hyper-vigilant risk management team is good for protecting a business from fraudulent transactions, but legitimate transactions can get caught in the mix. By confirming a customer’s travel history or transaction history over the phone, an e-commerce merchant can easily resolve any issues.
Double-check large or unusual purchases with the buyer. If a purchase is rejected due to its unusual size or nature, an e-seller can save a lot of time and headaches by calling the buyer directly and asking for confirmation.
To verify these transactions, the data must be collected before the credit card is processed. If an online store does not do this, it can be resolved by quickly changing the way the information is collected at checkout. A phone number and email address collected and stored before credit card information is processed can prevent headaches in the future.
Opting out of soft transactions is a common but necessary step to protect an e-commerce merchant's revenue from credit card fraud. While the final work to verify these transactions may require some effort, it is worth it if it preserves the revenue generated from these transactions.
Looking for eCommerce software? Check out Platforms' list of the best eCommerce software solutions .