Online transactions are generally smooth, but payment failures can occur due to issues with any of the key players involved: the cardholder, merchant, acquirer, or issuing bank. Here’s a quick overview:

Key Players and Their Roles:

1. Cardholder Errors: Common mistakes like incorrect card number, CVV code, expiration date, or name can cause transactions to fail.
2. Issuing Bank: Banks may decline payments due to insufficient funds, fraud prevention measures, or account restrictions.
3. Merchant: While rarely directly at fault, a merchant’s business type or website could trigger a rejection by the issuing bank.
4. Acquirer: Technical issues or improper account configurations can also lead to failures.

Identifying and Addressing Failures

When a payment fails, merchants receive a response code from the issuing bank, identifying the reason. These codes help pinpoint whether the issue lies with the cardholder, issuing bank, or acquirer, guiding merchants on the steps to resolve the problem. Understanding the roles and responsibilities of each party involved helps minimize disruptions and enhances the overall customer experience, resulting in smoother and more successful transactions.

LSP