CREDIT CARD TRANSACTION RISK ENGINE ISO
This is an intriguing question and one that many payment companies, especially smaller start-ups and those operating ISO and PF models, often fail to address properly. So why should payment companies worry about credit risk? Payment companies offering card processing facilities do not extend credit facilities in the traditional sense. For banks and other financial institutions credit risk arises following an initial extension of a credit line (mortgage, loan facility, credit card etc.), and loss occurs when the corporate or individual is unable to repay their facility. Simply pointing out the boat has already hit an iceberg and is sinking is of little use to anyone.īefore looking into the intricacies of credit risk in payments, we need to understand what credit risk actually is.Ĭredit risk is the possibility of financial loss resulting from a corporate or consumer’s inability to fulfil its contractual obligations. While all roles within a payments company are equally important, it’s better to have robust risk management that is able to spot an ‘iceberg’, judge the severity of any impending collision, and recommend a change of course. Of course, by this time it may be too late to avoid disaster.
It’s only when the boat hits an iceberg and is sinking that the value of a spotter is understood. The operations, development and product teams are the engineers, navigators and stokers that make sure the boat continues to travel in the right direction.Īnd the risk teams are the iceberg spotters while sailing conditions are fine and the icebergs are avoided, no one realises their value. The account management and customer support teams are the onboard stewards, making sure everyone is comfortable and ensuring reputation is upheld and repeat custom continued. The sales teams sell tickets and bring in the passengers, without which the endeavour would make no money. If you experience any other errors which are not listed or you are still having difficulties, please contact us at we will do our best to assist you.Consider the analogy of a payments company operating like a cruise ship. Resolve the error by identifying any issues listed above and wait 24 hours before attempting payment again. If you keep attempting payments with the same declined card, the card will become blocked for fraud. This error usually means that the card has another issue listed above.
Resolve the error by contacting your bank to find out why the transaction is being declined. The transaction may be declined due to a high level of recent activity on a card, a lack of matching AVS information, the card is over its limit or a range of other reasons known only to your bank.
2046: Processor DeclinedĪ fairly generic response that many issuing banks will send back when declining a transaction. The response doesn't necessarily indicate that there is a problem with the card however, it does indicate that the bank won't approve this transaction. This response indicates that the card-issuing bank is declining the transaction for unspecified reasons. Resolve the error by adding a new credit card to your Joan Portal account. This message indicates that your credit card has expired and is no longer active. Resolve the error by adding further funds to your account. This may be a temporary situation and the transaction may go through on another date. The credit card doesn't have enough funds to cover the charge.
Some of the most common errors associated with declined cards are listed below, along with an explanation of their meaning.Ī generic bank response which simply indicates that the bank is not willing to accept the transaction. There is a large number of reasons why a credit card may be declined, from there not being enough funds available on the card, to the card being expired, the billing address being incorrect, etc.
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