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Late Authorisations And Failed Payments Credit Card: Know It All

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Making payments through a credit card app online or through a Point of Sale offline is easy, but have you ever experienced payment failures or late authorisations? This can put you in a really tough bind. 

And if you are wondering why this happens, there can be a number of reasons behind these instances. Get some insight on this and how to reduce such instances to pay without any disruptions.

Guide to Credit Card Authorisation

Authorisation for your card refers to the process of getting approval from your credit card company regarding whether you have sufficient funds or the required credit limit to cover a transaction. 

In simple terms, it’s a green light to the merchant about the validation of a cardholder’s account and that the bank or issuer approves the transaction. 

It works on this basis:

  • A user makes a purchase by entering credit card details online or by swiping, inserting, or tapping the card at a POS
  • Then, your payment processor sends a request of authorisation to the acquiring bank via a credit card network, like Mastercard, American Express or Visa
  • This request includes the transaction’s details, such as the amount, the card number, and the merchant’s details
  • The acquiring bank routes the request back through the network, which then forwards it to the issuing bank
  • The issuing bank checks the validity and authenticity of the account, evaluates the transaction for fraud, and checks that the account for the available funds
  • The issuing bank shares the outcome of the authorisation back through the same channels to you
  • If the request is approved, your payment goes through, and if the request is declined, your payment is cancelled

Common Reasons for Failure of an Authorisation Request

Here are some reasons why these requests can sometimes fail:

Credit Limit Reached or Insufficient Funds

If the cardholder’s account doesn’t have sufficient funds or has reached its credit limit, the issuer will decline the authorisation request. To prevent this scenario, you must regularly check your credit limit to ensure you have adequate funds for your purchases. 

Doing this is easy if your card is linked to a credit card app online, as this provides a convenient way to get instant updates about your limit. 

Suspicious Request

If the credit card company identifies any suspicious activity or a pattern that points to the possibility of fraud, it may reject the authorisation request. For example, if a card is utilised at various locations in a brief time period, the issuer may view it as a red flag and decline the transaction as a safety measure. 

Technical Problems

At times, authorisation requests may fail due to technical issues or glitches in the system that you have no control over. These may arise due to:

  • Problems in the system of the card issuer
  • Problems in the payment processor of the merchant
  • Weak internet connection during online transactions

In such cases, it’s best to attempt the transaction again later or reach out to the issuing bank or the merchant for help.

Blocked Account

Occasionally, the issuer blocks your account due to several reasons, such as:

  • Suspicious activity
  • Outstanding fees
  • Violation of the agreement

In such instances, the card issuer may reject the authorisation request until the matter is resolved. You should reach out to your issuing bank for the following:

  • To check if your account is blocked
  • To know the reason why it’s blocked
  • Necessary steps you need to take to resolve the issue

Expired Credit Card

Your card has an expiry date, which means you will not be able to make transactions through it once it has reached that date. To avoid this, ensure that you pay attention to the expiry date of your card. Here too, having access to a credit card app online can help you keep up to date about this information. 

Incorrect Information

Another reason for failed authorisation requests is adding incorrect information about your credit card. This may include:

  • Incorrect credit card number
  • Incorrect expiration date
  • Incorrect CVV code

Remember to double-check the information you enter to avoid such instances.

Tips to Improve Credit Card Authorisation Rates

Here are some tips that merchants employ to reduce their authorisation failures:

  • Merchants must ensure that the customer information that they have in their records is accurate
  • They run AVS and CVV checks to confirm the identity of the cardholder and reduce the risk of fraud
  • They collaborate with payment processors to improve transaction settings
  • They tokenise and encrypt customer data to safeguard it and prevent breaches and declined transactions
  • They work towards improving their understanding of what causes the failures and work on improving authorisation rates

Now that you know why they occur, you can manage your payments better and reduce the chances of failure. In addition to these points, choosing a good credit card is also essential. A great option to consider is the One Credit Card. 

Through the powerful One Credit Card app, you can manage your payments confidently. What’s more, with this card, you can get exciting deals and discounts on shopping and dining and up to 5X rewards on top spends. In addition, this is a lifetime free credit card and allows you to convert your large purchases into budget-friendly EMIs. Apply online to get this premium metal card today!

nancy Ahuja
nancy Ahujahttps://finance-plus-investments.blogspot.com
I am an independent girl and running my business for the last 5 years and also a blogger.I love to explore new ideas for business and self-development. I love to write on business and finance.

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