Guide To Fixing Payment Gateway Rejected Of User Requests

Has your customer ever experienced frustration due to a payment gateway being rejected? No one enjoys encountering an online payment failure notification after meticulously entering all payment information during checkout.

Although revisiting the payment process may not be time-consuming, a failed transaction can cast doubt on the dependability of the e-commerce store for your business and lead to significant lost sales.

According to statistics from Finance Magnates, 62% of online shoppers abandon their carts due to declined by payment gateway.

The reasons for payment gateway rejection and a guide to fix them.

When it comes to digital transactions, which continue to dominate the way we make and receive payments, online payment failures pose a significant challenge for e-commerce business owners. Ignoring this issue can result in a subpar customer experience, increased instances of abandoned carts, and a decline in sales revenue.

Let us look into this topic to discover how to resolve a payment gateway decline and investigate the reasons behind it. Understanding why it occurs can provide valuable support for your business, contributing to an enhanced customer satisfaction experience.

Why was your transaction declined by the payment gateway?

In order to better resolve the problem as well as prevent potential rejections in online payments, we need to understand why and how our transactions are being rejected. So, let's take a closer look at the online payment process to understand in what scenarios the payment gateway may decline your transactions.

When a consumer makes a transaction, the payment gateway acts as a conduit between the consumer and the payment processor. The card data is forwarded to the acquiring bank, as well as the merchant acquirer, after fraud checks and 3D Secure validation. Following that, the acquiring bank securely transmits payment information to card schemes, also known as card networks (such as Visa, Mastercard, UnionPay, JCB, and American Express).

Payment gateway declined can significantly diminish customer satisfaction during the shopping process.

The money is forwarded to the issuing bank for approval or rejection after passing additional security checks. The acquirer is notified, and the merchant is informed whether the payment was approved or rejected. All of these steps take place in milliseconds.

To go deeper, let's analyze and expound on each stage or provide instances for more clarity.

What are the various types of payment gateway being rejected?

The payment gateway may reject your transaction under any circumstances, and these rejections can be classified into several sorts depending on the circumstances. Here are some reasons why the payment gateway declined your transactions:

Inaccurate information

The payment gateway may be rejected from the consumer’s side due to various errors, leading to an incomplete payment. One common scenario is when a customer provides incorrect card details, such as entering an expired card, an inaccurate card number, or mismatched cardholder information. In these cases, the payment gateway detects the errors and will reject your transaction.

One important way to reduce payment gateway declined is to confirm and correct your information to complete your transaction.

Another situation involving incorrect input is the wrong submission of one-time password (OTP). For instance, if a customer fails to input the correct OTP sent to their registered mobile number, the payment gateway will reject the purchase. This security measure ensures that only the rightful cardholder can complete the payment.

In addition, insufficient funds in the customer's account or credit card also contribute to payment gateway rejections. For example, attempting a transaction without having enough funds in the linked bank account or credit card will result in the payment gateway declining the transaction.

Seller's error

Payment gateway rejections on the merchant's side can result from any issues, particularly those connected to technology or security errors that are the seller's responsibility. These difficulties may impede the regular flow of transactions and lead to payment declines.

Technical issues with the merchant's payment processing system are a typical occurrence. For example, system faults or software issues may result in transaction rejections.

Moreover, if the seller's security measures are inadequate, the payment will be declined by the payment gateway. An example of this occurs when the SSL certificate, responsible for ensuring secure data transmission between the customer's browser and the merchant's server, expires. Such an occurrence can lead to rejections as the payment gateway denies the transaction.

Data transfer error

The payment gateway rejects your transaction if there is a data transmission issue. This situation occurs when a consumer receives a payment failure notice, but the payment is eventually processed, leading to a debit to the cardholder's account.

The inability to connect to data is one of the main reasons for payment gateway rejection of your transaction.

For example, a scenario could occur in which the payment gateway has a brief data transfer issue. Despite the initial denial notification, the payment transaction proceeds in the background and is completed. This can confuse the cardholder because the seeming refusal contradicts the subsequent debit from their account.

There has been no charge

The payment gateway rejects the transaction if the amount is not charged. In other words, the payment gateway declines the transaction, and the customer's account will not be debited.

If there are sufficient funds in the customer's account, the payment gateway will accept the transaction and prevent the amount from being charged to the customer's account. That is the reason why the payment gateway rejected your transaction.

Many other reasons make the payment gateway reject your payment transactions. However, the above are the most common issues that have happened in the online payment process that people should get to know and learn how to resolve for the healthy growth of their businesses.

Causes of payment gateway being rejected and subsequent consequences for users

Causes of payment gateway being rejected

Various factors can contribute to payment gateway being rejected. As mentioned earlier, rejections from the customer's side may occur due to providing incorrect details or a lack of funds.

On the merchant’s side, the reasons for the payment gateway being rejected are more complex, necessitating a more detailed understanding of the causes.

Here are the main reasons for payment gateway rejection from the merchant’s side for the user:

• System downtime

The entities involved in online payment processing include the payment gateway, payment processor, acquiring bank, and issuing bank. Each of these entities may experience downtime, whether it is planned or unplanned.

If any of the participants in the online payment process is unavailable during a transaction, the server is unable to get authorization. When this occurs, the payment gateway will reject your transaction. Consequently, the smooth execution of the payment request is impeded.

• Payment technology decline

Let's review the online payment flow infographic. Payment processing comprises a series of procedures designed to debit the customer's account and credit the merchant's account. When a consumer initiates the payment process, they must select a payment method (such as credit card, Apple Pay, Google Pay, Samsung Pay, installment payments, etc.).

An overload in technology connections during payment is also one of the common causes of payment refusal.

Subsequently, after choosing a payment method, users are required to provide payment information, including their name, credit card number, and CVV (credit card security code), for example. The payment data is then sent to the payment gateway, which transfers it to the card network.

After verifying the details and authorizing the transaction, the amount is transmitted to the acquirer and transferred to the merchant's account. If a minor fault occurs during any of these steps in the payment process, the payment gateway is likely to reject your transaction.

• Security measures in jeopardy

Every participant in online payment processing must adhere to security standards to identify and prevent payment gateway from being declined. Banks and financial institutions, including issuers, leverage advanced technology designed to detect and analyze fraud.

These fraud-detection tools scrutinize and assess whether online transactions align with authenticated patterns based on prior spending behavior. If any irregularities are detected, the transaction is blocked and subsequently declined.

In addition to the main reasons mentioned above, payment rejected by gateway can also occur due to various mistakes, such as the merchant account blocking the transaction, the credit or debit card being expired or canceled, an invalid billing address, the bank flagging the cardholder’s account, the customer’s credit card being maxed out, improper configuration of the payment gateway, the consumer’s account being suspended or closed, or the payment gateway not supporting the online payment method chosen by the consumer.

Consequences of payment being rejected by the gateway

The decline of payment by the gateway has significant consequences for both the buyer and the seller. Below are some common resulting consequences of a payment gateway declined.

• Impacts on revenue, workflow, and cash flow:

These disturbances permeate the core fabric of a company's operation, diverting attention and resources away from critical tasks and reducing overall productivity. The once-smooth cash flow experiences turbulence as the ripples expand, potentially impeding the smooth functioning of day-to-day activities.

• Word of mouth and negative reviews can diminish a business's reputation:

When the payment gateway declines a payment, it initiates a chain of consequences that can impact both the buyer and the seller. For the buyer, this can lead to frustration, inconvenience, and a potential loss of trust in the reliability of the online transaction process. Repeated payment rejections may prompt the buyer to seek alternative platforms, affecting long-term customer loyalty.

On the seller's side, frequent payment declines can result in lost revenue, damage to reputation, and increased operational efforts to handle customer inquiries and provide support. Trust and confidence in the payment system are pivotal for maintaining a positive customer experience and ensuring the seamless flow of transactions.

So, a declined payment by the payment gateway goes beyond a mere transaction hiccup; it influences the dynamics of trust, loyalty, and overall satisfaction for both buyers and sellers in online transactions.

Guide to resolving rejected payment gateway transactions

Payment rejections by the gateway are inevitable in e-commerce. However, using a secure payment service provider (PSP) such as the PayCEC payment gateway, with advanced functionalities and the capability to accept various payment methods, can aid in reducing failed online payments.

Here are some common ways to resolve and minimize this issue.

Utilize a payment gateway that directs transactions to multiple payment processors

Transactions are routed to a variety of businesses, including the payment processor. If your payment gateway only allows you to route payments through one vendor, the likelihood of system disruptions and payment gateway being rejected rises.

Ways to resolve problems when a payment gateway accepts multiple payment processors.

As a result, if one of the processors fails, your clients may not receive a payment rejection notification. You can instead schedule payments to numerous merchants. This strategy allows you to approve more payments, improve the customer experience, and boost conversion rates.

This strategic application of payment orchestration decreases the likelihood of system rejection and provides a seamless and resilient payment processing system. It provides a more consistent and good customer experience, ultimately improving corporate profitability.

Discover an e-commerce payment platform with advanced functionalities

Begin your search for an innovative e-commerce payment platform, a digital beacon that promises more than just transactions but solutions. Its user interface draws merchants and customers into a realm of frictionless transactions that gracefully handle obstacles. With security measures acting as watchdogs, this platform not only enables transactions but also ensures a smooth transaction and decreases payment rejected by gateway.

Make online payment security a priority

Starting the journey toward online payment security compliance is more than just a shield for your valued consumers; it's a fortress protecting your organization from the ever-watchful eyes of fraudsters and looming security concerns. Navigating the numerous procedures toward compliance can be difficult, particularly in the early phases of brand development.

But don't worry, PayCEC – the leading global payment gateway solution is here as a ray of hope that will assist you in enhancing your security priority. This steadfast option protects your money and acts as a guiding ally, delivering support and resolution when confronted with the turbulent waters of a payment gateway rejected. Choosing PayCEC means establishing a route toward security, trust, and a frictionless payment experience in the volatile world of e-commerce.

Accept a broad spectrum of online payment methods

In the dynamic realm of e-commerce, a payment gateway can be a game-changer, and opting for one that facilitates a diverse array of online payment methods is like unlocking a treasure trove of possibilities.

The PayCEC payment gateway emerges as a beacon in this regard, not merely as a conduit for transactions but as a key to expanding your reach across the global marketplace.

The PayCEC payment gateway accepts a variety of payments, including Mastercard, Visa card, Apple Pay, Samsung Pay, AMEX, etc.

Consider this: Samsung Pay, Apple Pay, Visa Card, Mastercard, and more—all seamlessly integrated into a user-friendly payment experience. It's not just about convenience; it's about reducing the likelihood of payment gateway rejected, ensuring that transactions unfold smoothly. By embracing this breadth of payment methods, businesses cater to varied customer preferences and carve a niche for themselves.

In conclusion

While it is impossible to eliminate payment gateway declines, understanding why they occur can help you handle the challenges more successfully. This understanding not only helps with problem-solving but also helps to simplify and clarify the process for your consumers. You can avoid rejected transactions caused by consumer faults by doing so. When online payment issues occur, having a well-informed strategy allows you to manage them effectively.

Go live with the PayCEC payment gateway now to avoid a lot of problems during online payments.

Furthermore, researching the PayCEC payment gateway provides a proactive technique for improving the simplicity of online payments and eliminating various payment gateway refusal concerns.

This in-depth investigation seeks to provide you with significant insights into the why, what, and how of addressing payment gateway rejections, providing a wealth of information to help you better understand and optimize your online payment operations.

About PayCEC

PayCEC was established in response to the growing need of businesses to accept online payments more quickly and easily. In the new media era, our payment flow has evolved to work seamlessly and effectively across all platforms and devices. We pride ourselves on combining superior technology with first-class customer service.

PayCEC is a truly global payments platform that not only allows customers to get paid but also withdraws funds to their business accounts in various currencies.

We have created an open and secure payments ecosystem that people and businesses choose to securely transact with each other online and on mobile devices.

PayCEC Team

• [email protected]
• +65 6631 8332
• www.paycec.com