Recently some of our clients have asked a common question:
“What can I do when I see a decline response from the terminal?”
Unfortunately, it is a common misconception that running the card over and over
is acceptable. Running the card multiple times in order to get an approval is a
bad idea. A decline is final. When a card is declined, the only legitimate
course of action is to ask for another form of payment.
A decline is a response from the cardholder’s bank stating they will not
approve the transaction. If you continue with multiple attempts, you may
eventually get an authorization. However, because that transaction was
initially declined, you are putting yourself at risk of an irreversible
chargeback. Once a bank declines a transaction, it no longer has any obligation
to pay. This leaves you, the merchant, holding the bag.
Often a cardholder will insist that they have the available credit and that the
decline is a mistake. Although as a salesperson the pressure to make a sale can
be great, it is not worth the risk. If a cardholder is having issues with their
credit, it is between them and their bank. If your customer has questions
regarding the issue at the time of the transaction, please direct them to
contact their bank or credit card company.
Although the situation can sometimes be uncomfortable, there are ways to defuse
the embarrassment for your customer. First, instead of using the word
“decline,” you can let the customer know that their bank is “unable to approve
the transaction,” for the cardholder’s protection. There may be issues with
their card that they are unaware of (i.e. identity theft or fraud). Often, when
the matter is approached in this way, a frustrated or embarrassed cardholder
can become a very appreciative customer.
If you would like to learn more about situations like these and how to hand
them, call us. We will be happy to consult you and your staff. Remember, a
decline is final! Once a decline has been received, ask for another form of
payment. It is the only way to truly protect your business.
