Gateway Rejected Risk Threshold: False Transactions and Failed Payments

Gateway rejected risk threshold is a crucial setting that can make or break your online business. It determines the likelihood of false transactions and failed payments.

Setting the threshold too low can lead to a high number of false declines, while setting it too high can result in a higher number of false accepts. This delicate balance is key to maintaining a healthy payment flow.

According to research, a gateway rejected risk threshold of 30-40% can lead to a 20-30% increase in false declines. This is because the threshold is too low to accurately identify legitimate transactions.

A gateway rejected risk threshold of 60-70% can lead to a 10-20% increase in false accepts, as the threshold is too high to effectively identify high-risk transactions.

A credit card decline occurs if a payment cannot be processed, and it's a common problem faced by businesses that process recurring payments. An average of 15% of recurring payments are declined, but for some industries, the rate can be double that.

Error codes and error messages are issued by the gateway or processor when a card is declined. An error code is a number that identifies the error, while an error message is a message that identifies the problem.

Error codes differ from gateway to gateway, and there are no standardized error codes that can help customers make sense of what went wrong. For example, Authorize.Net throws up error codes like E00005 and E00027, while Braintree throws up error codes like 2046 and 2048.

Card issuers are reluctant to share information about the cardholder's account status, such as being behind on payments or having a lost card. This is done to protect the cardholder's privacy.

Here are some common error messages that customers might come across:

Most credit card declines can be avoided by implementing strategies to reduce them. Integrating these strategies with your accounts receivable and billing software can help prevent declines and reduce the chance of loss of revenue.

The Luhn algorithm can be used to help understand the validity and authenticity of card details. This can help weed out problem payments at the beginning.

Credit card declines can be frustrating for both you and your customers.

Error codes and messages are recorded for you to review later, but they can be vague and don't always help you understand what went wrong.

Most gateways, like Authorize.Net, have their own unique error codes, such as E00005 and E00027.

Card issuers are reluctant to share specific reasons for declines, like a cardholder being behind on payments or maxed out on credit.

Fraudsters might use detailed decline information to bypass fraud checks, so card issuers keep this info private.

Here are some common error messages you might come across:

While error messages can be vague, understanding the common reasons for declines can help you and your customers.

Decline codes and error messages are two pieces of information that your gateway issues every time a card is declined. They're like a puzzle, and understanding them can help you and your customer make sense of what went wrong.

An error code is typically a number that identifies the error to the system, while an error message is a message that identifies the problem to you and your customer. For example, Authorize.Net throws up error codes like E00005 and E00027, while Braintree throws up error codes like 2046 and 2048.

Card issuers are reluctant to share specific reasons for declines, like if the customer is behind on paying their bill or has lost their card. This is to protect the customer's privacy and prevent fraudsters from learning how to bypass fraud checks.

Here are some common error messages you might come across:

A generic bank response, "Do Not Honor", simply indicates that the bank is not willing to accept the transaction. This could be due to a range of reasons, including high recent activity on the card, a lack of matching AVS information, or the card being over its limit.

52% of orders merchants thought were suspicious transactions turned out to be good orders that were caught in the fraud nets. This highlights the importance of fine-tuning your fraud filters to avoid blocking legitimate transactions.

According to Visa and Mastercard, an average of 15% of recurring payments are declined, but for some industries, the rate can be double that. This shows that credit card declines are a common problem faced by businesses.

False blocks and false declines can be prevented by understanding the mechanics of failed payments and integrating strategies with your accounts receivable and billing software. This can help prevent declines and reduce the chance of loss of revenue.

Here are some common reasons for false blocks and false declines:

To prevent false blocks, you can customize the rules in your gateway to catch suspicious transactions. This can include ignoring block, or flagging payments that fail AVS and CVV checks, or transactions initiated from a suspicious location.