Technical
Decline Code
Definition
Decline Code a standardized code returned when an authorization is declined, indicating the reason. Common codes: 05 (Do Not Honor), 51 (Insufficient Funds), 14 (Invalid Card), 41 (Lost Card). Understanding decline codes enables intelligent retry logic - insufficient funds may succeed later; lost card never will. Codes vary slightly between networks and processors.
Related Terms
Decline
An authorization request rejected by the issuer or processor. Decline codes indicate the reason: insufficient funds, suspected fraud, expired card, do not honor, etc. Not all declines are permanent - 'soft declines' may succeed on retry. Understanding decline reasons helps optimize approval rates. High decline rates hurt conversion and may trigger acquirer concerns.
Authorization
The process of requesting approval for a card transaction from the issuing bank. The authorization request includes card details, amount, and merchant information. The issuer checks available credit/funds, fraud rules, and account status before responding with an approval or decline. Authorization is the first step - funds are reserved but not transferred until capture.
Retry Logic
Automated rules for retrying failed transactions. Not all declines should be retried - and retry timing matters. Insufficient funds should be retried in a few days; expired card should prompt card update. Intelligent retry can recover 10-30% of soft declines. Important for subscription billing to reduce involuntary churn from temporary payment failures.
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