The reasons for payment declination
⦁ Insufficient funds: The cardholder does not have enough money available in their account to cover the payment.
⦁ Incorrect card details: The card number, expiration date, security code, or billing address entered does not match the information on file with the card issuer.
⦁ Fraudulent activity: The card issuer may decline a payment if they suspect fraudulent activity on the card.
⦁ Card expired: The card may have expired, and the cardholder has not updated their information with the issuer.
⦁ Card canceled: The cardholder may have canceled their card or reported it lost or stolen.
⦁ Daily spending limit exceeded: The card issuer may have a daily spending limit that has been reached.
⦁ International transactions: Some card issuers may block international transactions for security reasons.
⦁ System error: A technical error on the payment processor’s or card issuer’s side may cause the payment to be declined.
When a credit card is entered as a payment method in NetSuite, the system uses the credit card number and expiration date to validate the card details before processing the payment. Here are the general steps that NetSuite follows to validate the credit card details:
NetSuite checks that the credit card number is a valid number and that it follows the correct format based on the card type (Visa, Mastercard, American Express, etc.). This check helps to ensure that the card number is not fraudulent or entered incorrectly.
NetSuite checks that the expiration date is not past the current date or beyond the allowed limit for the card issuer. This check ensures that the card is still valid and can be used for the payment.
NetSuite sends the credit card details to the payment processor or gateway for authorization. The payment processor performs additional checks, such as verifying the cardholder’s name, address, and security code, and checks the available credit limit on the card to ensure that the transaction can be authorized.
If the payment processor approves the transaction, NetSuite records the payment and creates a customer deposit record, reducing the customer’s outstanding balance by the deposit amount.
If any of these steps fail, the payment will be declined, and the system will generate a decline message indicating the reason for the decline.