Credit card declines can have considerable negative impact on an online business. Credit cards may be declined for several reasons aside from the obvious one of insufficient funds.
Sometimes the decline may be caused by a simple mistake – the card holder may have keyed in the wrong card number or CVV. Declines can also be the result of processing downtimes. This is more likely to happen when you fail to optimize local third-party service providers in various global markets.
However, declines may also occur due to false fraud flagging. This means that a transaction was identified as fraudulent even though it was legitimate. This may occur when you fail to adjust fraud screening according to risk levels in various markets. The result of declines is a disgruntled customer who will most likely never return to your website.