Decline Codes

Decline codes are response messages from a cardholder’s bank explaining why a transaction was not approved. They help identify whether the issue is related to insufficient funds, incorrect information, suspected fraud, or another cause. Each code provides insight into what went wrong so the merchant can determine the next step. Some declines are temporary and can be resolved quickly, while others are considered hard declines and require a different form of payment. Understanding decline codes helps reduce confusion, improve approval rates, and prevent unnecessary retries.

Tips to reduce declines

• For card-present:
  Train your staff to recognize hard declines and handle them consistently. When a hard decline appears, the transaction should not be retried on the same card. Instead, employees should politely inform the customer that the payment was declined and request another form of payment. Avoid manually keying in the card unless absolutely necessary, as this can increase risk. Staying calm and professional helps prevent awkward situations at checkout. Clear procedures ensure your team handles declines confidently and reduces potential fraud exposure.
• For card-not-present:
  Enable Account Updater through your gateway or customer vault whenever possible. This service automatically updates stored card information when a card is replaced, reissued, or otherwise changed by the bank. Running updates regularly, such as weekly, can significantly reduce declines due to expired or closed cards. It is especially important for businesses with recurring billing or subscription models. Keeping card data current improves approval rates and protects long-term customer relationships. Proactive updates help prevent unnecessary disruptions in revenue.

Small fixes like these can make a big difference in approval rates.

Decline Codes

Category 1 Decline Codes
04 - Pick up card (no fraud)
07 - Pick up card, special condition (fraud account)
12 - Invalid transaction
14 - Invalid account number (no such number)
15 - No such issuer (first 8 digits of account number do not relate to an issuing identifier; Credit Only)
41 - Lost card, pick up card (fraud account)
43 - Stolen card, pick up (fraud account)
46 - Closed account
57 - Transaction not permitted to cardholder (* if SIGIS registration issue, wait until cleared)
R0 - Stop this payment
R1 - Stop all future payments
R3 - Stop all merchants

Staying ahead of declines keeps your cash flow predictable and your customers happy. A little prevention now saves a lot of friction later.

Have questions? Let us know!