![]() To your bank, they'll see this transaction as approved and will temporarily hold ("reserve") this money until the payment processor claims the money (which will never happen as it is a declined transaction), or a specific time elapses with no action from the payment processor which then releases the reserve. This transaction will NOT show up on your credit card statement as it is declined by the payment processor. To conclude, the net result of transaction status is a failure as the payment processor declined the transaction even though your bank approved it. This is the reason why your bank says it's approved, and your merchant says declined - and, they are both right!! Your bank approved the transaction, but the payment processor declined the transaction. If customer entered address, zip code and card code do not match with the credit card billing information provided by the issuing bank, the payment gateway may decline the transaction based upon merchant's fraud security settings. If the transaction is approved by your bank, now the transaction is once again go through a security check by the payment gateway company with billing information sent by the issuing bank. The customer's bank account will show transaction declined and so does the merchant's processor so there is no reason to argue with the merchant or bank.ģ. If transaction is declined by your bank, the transaction stops and there is NO problem. The information is then sent to your bank ("issuing bank"), and your bank will either approve or decline the transaction based on customer's available funds. When a buyer commits an order, the credit card transaction goes to the payment gateway provider such as Authorize.Net and forwards the transaction to Merchant Bank's Processor.Ģ. For full explanation, please read the Credit Card Processing Diagram with explanation below.ġ. To understand why this is happening, you'll have to understand how credit card transactions are processed. ![]() The bank will say "ask the merchant to call in to cancel this transaction", but a merchant CANNOT call in on your behalf as the credit card companies will not share account information with non-account holders such as a merchant. The charge will be on "pending" state, and the money will never be taken out of your credit card account but the reserve will be put aside so it will reduce your credit limit until the transaction clears on it's own within 2-5 business days. The merchant cannot remove the charge since it was never approved, so please do NOT ask merchant to remove this charge. It is the way how the banks operate, so it's not your fault nor merchant's fault. ![]() Merchant's payment gateway may have security settings which may have triggered a decline such as address and zip code verification. Yes, your bank approved the transaction but the merchant's payment gateway declined the transaction so the entire transaction was declined even though your bank approved it. The merchant is telling you the transaction was declined, and your bank is telling you it has been approved. More info on why you see it as a charge here: Your bank marked your attempts as "pending" and hold it for 2-3 days. We didn't receive any orders so you were not charged, out payment gateway declined the card for address or zip code discrepancy.
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