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False Declines are the Bane of the Industry of Payments

What are False Declines?

A false decline refers to a situation where a valid credit or debit card transaction is mistakenly rejected. This can happen due to an error by either the merchant or the bank issuing the card. False declines are essentially legitimate transactions that are blocked because they are suspected to be fraudulent, even though there is no actual fraud involved.

Take a look at the possibility of a fake decline, from a buyer’s point of view. They probably have spent time researching their desires and requirements. Most of the time, the purchase process is similar. The buyer is studying different products, reading user reviews, and comparing features. Then, they decide to purchase, and then the purchase is declined.

The Next Question is: What Happens?

Two things can typically happen when a legitimate buyer request is not accepted. They either choose an alternative card to pay using, or they choose to move their business somewhere else and purchase from a different merchant. If a consumer decides to change merchants, there’s a low chance of the customer returning to your service. Merchants must be aware of the negative press they receive on social media when customers post their negative experiences with the world. False negative reviews can cause consumer discontent and can reduce the card issuer and the merchant’s profit.

Merchants and issuers shouldn’t be forced to investigate false declines. But there is an answer to this issue. To identify fraud and decrease the possibility of false decline, it starts by confirming the identity of the person who is making the purchase during the payment process and the use of a 3D Secure solution that is in compliance with EMVCo’s 3D Secure 2 payment authentication protocol. This is an added layer of security that helps to decrease false declines, cut down on fraud, and increase payments from the issuer.

Solutions to assist issuers, merchants, or payment providers are provided by Logibiztech. All of them are EMVCo-approved solutions offering a complete array of integrated authentication solutions built upon 3D Secure 2. 3D Secure 2 protocol, and compatible with all major card schemes.

3D Secure is the latest and most current protocol that is able to authenticate transactions made using cards not present from any device and cut down on false decline with improved security measures based on risk.

More than 100 data elements that are involved in the transaction between the merchant and the cardholder are provided to the issuer to assist in the risk-based authentication of the cardholder, which allows the issuer to authorize transactions with greater certainty.


Due to the quantity of data, regarding the cardholder’s identity, that is obtained during the transaction Utilizing the EMV 3DS will lead to an efficient and smooth authentication process challenges for the cardholder, fewer declined transactions, more approvals, improved customer confidence, and a better and more seamless shopping experience for shoppers.

Are you a retailer looking to increase your margins of profit? We’ve been helping businesses decrease fraudulent declines and fraud for over 20 years. Contact Logibiztech and let us assist reduce false decline while increasing your profits.

What is the impact of false declines?

False declines can have negative consequences for both merchants and card issuers. They can result in lost sales, as well as dissatisfied customers who may choose to shop elsewhere. Ultimately, the false decline can lead to reduced revenue for both parties involved.

How do you prevent false decline?

To prevent false decline, merchants can opt to not automatically decline any orders, or select a fraud protection provider who follows this practice. Instead, they can conduct a thorough manual review of any transactions that are flagged as potentially fraudulent by their fraud prevention system. This expert review can help avoid false positives and reduce the risk of mistakenly declining legitimate transactions.

Why would a merchant reject a payment?

When a customer attempts to make a credit card transaction, sometimes it may fail to process due to an issue, resulting in a declined purchase. Common reasons for credit card declines include insufficient funds, errors during the transaction process, stolen cards, and unusual activity on the card, among others.

How do I resolve a declined payment?

If your credit card transaction gets declined, the typical solution is to contact your bank or credit card company to resolve the issue. To do so, you may need to determine the reason for the decline. Often, your credit card company or bank will inform you of the reason for the declined payment. You can then reach out to them to get the issue fixed.

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