The Full Guide to Payment Error Codes and What They Mean

Ever had a card payment fail with nothing but some numbers and letters flashing on the POS screen? Don’t worry – those are payment error codes.

They might look like random digits, but these codes can actually tell you a lot, if you know how to read them. Some issues are temporary (a soft decline caused by a system error or insufficient funds), while others are more serious (a hard decline due to an expired card or suspected fraud).

Knowing what these codes mean can save time and reduce frustration at the checkout. That’s why in this blog post, we’ve compiled the most common payment error codes, along with their meanings, possible causes and suggested solutions. You’ll also find tips on how to minimise declines and tools that can help you monitor them.

Understanding Payment Error Codes

When a payment fails, it often triggers a transaction response in the form of an error code, also known as a decline code. These codes usually consist of short alphanumeric combinations, which help identify what went wrong during the transaction.

The specific code you see depends on where in the payment process the error occurred. The relevant party—whether it’s the customer’s issuing bank, the payment network or the payment processor—is responsible for generating the code.

Generally, payment error codes fall into two main categories: soft declines and hard declines.

Soft Declines

A soft decline indicates that a temporary error occurred during the transaction.

In these cases, the issuing bank authorises the transaction, but the payment cannot be completed due to a problem elsewhere in the process. These errors are often resolvable by retrying the payment.

Common examples of soft declines include:

• Temporary technical issues, such as network disruptions or server downtime;

• Insufficient funds in the account (if topped up, the transaction will succeed upon retry);

• The customer entered an incorrect security code or additional customer authentication is required.

Once the issue is resolved, the transaction will typically be processed successfully.

Hard Declines

A hard decline represents a permanent issue that must be addressed before retrying the transaction. In these cases, the bank does not authorise the payment at all.

Examples of hard declines include:

• Using an expired card or one that has been reported lost or stolen;

• Payments from a closed or blocked customer account.

If you receive a hard decline, it’s generally not advisable to retry the transaction using the same card. Doing so may flag the attempt as suspicious or fraudulent. Instead, it’s best to ask your customer to use a different payment method or contact the card issuer for assistance.

Common Payment Error Codes and Their Meanings

Payment error codes are not standardised. Different financial institutions may use different codes for similar issues. Some implement their own coding systems. This means that the error message displayed on your portable card payment machine or stationary POS system may differ from the actual code returned by the bank or processor.

In some cases, banks or providers issue a generic error code that simply indicates that the transaction failed, without providing a specific reason. 

To help you make sense of the numbers and letters shown on POS systems, we’ve compiled a table of the most common debit and credit card decline codes. Whenever you encounter an error code from now on, you can refer to the list below to understand its meaning and what the appropriate action is.

Error code	Description	Reason	Solution
01	Refer to card issuer	The card issuer declined the transaction.	Ask the customer to use a different card or contact their issuing bank.
02	Refer to card issuer (special condition)	The card issuer declined the transaction for a special reason.	Ask the customer to use a different card or contact their issuing bank for more information.
03	Invalid merchant	There’s a problem with your merchant account or ID.	Contact your payment processor for assistance.
04	Pick up card (no fraud)	The card is reported lost or stolen but not flagged for fraud.	Retain the card and request the customer to contact their card issuer.
05	Do not honour	The card issuer declined the transaction due to suspected fraud or insufficient funds.	Ask the customer to use a different card or contact their issuing bank.
07	Pick up card (fraud account)	The card issuer flagged the account for fraud and stopped the transaction.	Retain the card and contact the card issuer.
10	Partial approval	The authorised amount is less than the total amount requested.	Cancel the payment or ask the customer to pay the remaining balance with another method.
12	Invalid transaction	The card issuer flagged the payment as an invalid transaction.	Verify payment information and try again. If the issue persists, contact the card issuer.
13	Invalid amount	The transaction amount is invalid, typically due to a typo, such as a negative value or an ineligible symbol.	Double-check the payment amount and retry the transaction with valid values.
14	Invalid card number	The card number is incorrect or the bank account cannot be found.	Request the customer to re-enter their card details correctly.
15	No such issuer	The card number was entered incorrectly and the issuer cannot be identified.	Verify the card number, especially the first digit, which identifies the card network/issuer, and try again.
19	Re-enter transaction	An unknown error occurred.	Try again, and if the issue persists, contact the acquiring bank or merchant account provider.
28	File temporarily unavailable	A connection issue interrupted the authorisation process.	Wait and retry the transaction. If the issue persists, contact your acquiring bank or provider.
41	Lost card	The card owner has reported their card as lost.	Retain the card and contact the card issuer.
43	Stolen card	The card owner has flagged their card as stolen. Fraud is suspected.	Retain the card and contact the card issuer.
51	Insufficient funds	There are not enough funds in the account or the customer exceeded their credit limit.	Request the customer to use a different card or payment method.
54	Expired card	The card is expired or the expiration date is missing.	Ask the customer to use a different payment method or contact their bank.
55	Incorrect PIN	The customer entered an invalid PIN.	Ask the customer to re-enter their PIN.
57	Transaction not permitted (card)	The card isn’t configured for this type of transaction.	Request the customer to use a different payment method.
58	Transaction not permitted (terminal)	Your POS system or merchant account is not configured for this type of payment.	Contact your payment provider or suggest an alternative payment method.
61	Exceeds withdrawal limit	The transaction exceeds the daily withdrawal limit set by the issuing bank.	Ask the customer to try another credit or debit card, or pay using a different payment method.
62	Invalid service code (restricted)	Your provider does not support the card type used or the customer tried paying online with a card that doesn’t support online transactions.	Ask the customer to use a different payment method or check with your provider about system compatibility.
63	Security violation	The entered security code (CVC/CVV) does not match the card details.	Request the customer to re-enter their card information correctly.
65	Activity limit exceeded	The customer exceeded their credit limit or this payment will put them over the limit.	Request the customer to use another payment method.
85	No reason to decline	An unknown error occurred and the card issuer declined the transaction.	Ask the customer to retry the payment or use a different method.
91	Issuer system unavailable	The issuer couldn’t be reached or a network error occurred during authorisation.	Retry the transaction. If the issue persists, ask the customer to contact their issuing bank.
93	Violation (cannot complete)	The customer account has a violation and the issuing bank requires customer contact.	Request the customer to contact their card issuer. If cleared, retry the transaction or use a different method.
96	System error	A temporary error occurred with the system and prevented transaction processing.	Wait and retry the transaction. If the problem persists, ask the customer to contact their card issuer.
R0 or R1	Customer prohibited recurring payment	The cardholder requested their bank to decline the recurring payment you are trying to process.	Cancel future scheduled transactions to prevent chargebacks and contact your customer to resolve the issue.

Categories of Payment Error Codes

Payment error codes can be grouped into several categories based on the cause of the transaction failure. Understanding these different types of causes can help you quickly identify the specific problem and determine how to resolve it.

Card-Specific Issues

These errors typically occur when there’s a problem with the card itself, such as an invalid account number, an expired card or one that has been reported lost or stolen.

In these cases, the customer should simply double-check the card details they provided (e.g. card number, CVV/CVC code or PIN). If the information is correct, they should try a different payment method and contact their bank for more information on why the card isn’t working.

Insufficient Funds and Limits

These errors indicate that the customer does not have sufficient funds available or has exceeded their credit or withdrawal limits for the day.

Here, the issue can be resolved by topping up the account balance or requesting a credit extension from the bank. Alternatively, the customer can simply use another payment method. 

Fraud Prevention

Card payments are sometimes automatically declined due to suspected fraud or violations of the bank’s security policies. In most cases, these are false alarms, but financial institutions are required to follow strict security protocols and treat every transaction with caution.

To resolve the issue, the cardholder must contact their bank, verify their identity and confirm that the transaction is legitimate.

Network and System Errors

These errors are usually caused by technical issues such as communication failures or temporary downtime in the payment network.

In this case, wait a minute or two and retry the transaction. If the problem persists, contact your payment processor or acquiring bank to find out the cause and how long it may take for the system to be restored.

Resolving Payment Errors

Whether shopping in-store or online, it’s in both the merchant’s and customer’s best interest for transactions to be completed smoothly and without delay. That’s why, when a payment fails, resolving the issue quickly is essential to avoid frustration and lost sales. But in order to do that, you need to know the right steps to take. 

Below are step-by-step guidelines tailored for each party involved.

For Merchants

As the merchant, there are several steps you can take to ensure the issue isn’t on your end and help the customer complete their transaction smoothly.

• Step 1: Verify Transaction Details – Double-check the payment amount, card number, expiration date and billing address. Simple data entry errors are often the cause of failed transactions.

• Step 2: Retry the Card Transaction – If the error appears to be a soft decline, wait a few moments and try processing the payment transaction again. 

• Step 3: Contact Your Payment Processor – If the problem persists or you keep seeing the same decline code repeatedly, reach out to your payment processor or acquiring bank for clarification and assistance.

• Step 4: Offer Alternative Payment Methods – If the issue can’t be resolved immediately, suggest an alternative payment method, such as another card, a mobile wallet, a bank transfer or even cash. 

Situations like these highlight the importance of supporting multiple payment options to give your customers greater flexibility.

For Customers

If you’re on the customer’s side and a transaction fails, here’s what you can do to resolve the issue:

• Step 1: Check Account Status – Ensure your credit account has sufficient funds to cover the transaction or that you haven’t reached your daily spending limit. Also, confirm that your card hasn’t expired or been restricted.

• Step 2: Contact Your Card Issuer – If everything seems in order, contact your bank or card issuer. They can provide details on why the transaction was declined and guide you on how to proceed.

• Step 3: Use a Different Payment Method – If the issue can’t be resolved right away, try using another payment card or an alternative payment method to complete your purchase without further delays.

Staying proactive and informed during a failed transaction can save time and frustration – often, a quick check or call is all it takes to get back on track. Prioritizing flexibility in payment methods also ensures smoother, uninterrupted purchases.

Tools to Monitor Payment Errors

Staying on top of your business finances is essential for maintaining smooth operations and delivering a positive customer experience. And that includes monitoring transaction statuses and payment issues. 

Fortunately, there are several tools available to help businesses analyse and resolve card transaction errors efficiently.

Some of them include the following:

• Online Payment Providers: Modern merchant service providers offer online platforms that let you monitor payment data in real time, including failed transactions. This helps you track issues and stay in control no matter where you are.

• Payment Gateway Dashboards: Most online payment solutions include user-friendly dashboards that display real-time transaction data, including declines and the associated response code.

• Fraud Detection Systems: These systems analyse transaction patterns for signs of suspicious or fraudulent activity. They help flag high-risk transactions, identify recurring decline transactions trends and spot potential system issues.

• Customer Support Systems: Integrated customer support platforms can log payment error codes, customer interactions and resolutions. This streamlines customer service and ensures you have the information needed to respond quickly and effectively.

By incorporating one or a combination of these tools into your business, you can reduce failed transactions, improve customer satisfaction and minimise the risk of lost sales. 

How Can You Prevent Payment Errors

As mentioned earlier, not all card declines are within the merchant’s control. Many are caused by problems with the customer’s issuing bank or card. In these cases, there’s little you can do directly.

However, there are several things you can do to minimise the risk of payment errors and help maintain strong customer relationships. 

Here are some key strategies:

1. Keep Payment Systems Updated: Regularly update your card machines, online payment gateways and sales software to prevent compatibility issues and maintain security.
2. Educate Your Customers: Offer clear instructions on how to complete payments, enter card details correctly and what to do if a transaction is declined.
3. Train Your Staff: Ensure all employees are properly trained to use your POS system and know how to respond when payment error codes appear.
4. Configure Fraud Settings Carefully: Avoid overly strict fraud settings that may trigger false declines regularly and frustrate legitimate clients.
5. Enable Multiple Payment Methods: Provide alternatives like digital wallets, BACS bank transfers or even cash to avoid over-reliance on one payment method.

In any case, preventing payment errors in advance is far better than trying to fix a declined transaction. It will help you streamline the checkout experience and maintain a high level of customer service.

Conclusion

Payment error codes provide valuable insight into the reasons behind failed transactions. They help both merchants and customers identify the problem and respond quickly and appropriately. By understanding what these codes mean and how to resolve them, businesses can deliver smoother payment experiences and reduce frustration at the point of sale.

Keeping your payment system up to date and properly configured minimises the chances of payment errors on your end. In addition, offering more than one payment method can ensure you don’t lose a sale when a card payment does not go through. 

While you can’t always avoid payment errors, by having the right tools and knowledge, you can turn payment challenges into small, easily solvable inconveniences.

Frequently Asked Questions

What is a Merchant Advice Code?

A Merchant Advice Code (MAC) is a special code returned with some payment errors that gives merchants guidance on whether they should retry the transaction. For example, some MACs suggest that retrying will not be successful and that a different payment method should be used instead.

What should I do when online payments fail?

Online payments are more likely to trigger fraud detection systems, which can lead to failed transactions. So, don’t panic if you see multiple failed attempts on your online store—it’s common. Start by checking whether the problem is not with your payment gateway. If the decline code indicates an issue on your end, contact your payment processor for support. If the cause comes from the customer’s side, consider reaching out to inform them and suggest trying a different payment method.

What does the Address Verification Service do?

The Address Verification Service is a fraud-prevention tool used during card-not-present transactions, like online purchases. If the billing address provided by the customer doesn’t match the registered one with the card issuer, the transaction may be declined or flagged for review. This helps reduce fraudulent online payments.

How can I locate the record of a failed transaction?

Most merchant service providers automatically log all transaction attempts, including payment error codes and decline reasons. This means you can easily locate the record of failed transactions by logging into your online account. In your myPOS account, you can find all failed payment attempts, including in-store and online payments, in your transaction history. There, you’ll see the status of each transaction. You can click on a specific payment to view detailed information, such as the customer’s name, the exact time of the attempt and the possible reason for the decline.