Why Does Your Online Payment Fail?

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An online payment is a payment made for a product or service purchased both online through online payment gateway and offline via the internet.

When conducting an online transaction, there are numerous factors that can lead to a failed transaction. When an online transaction fails in India, a pop-up message appears that says-

1. "Payment was declined: please try another bank account or contact your bank."
2. "Could not connect to server."
3. "It appears that your bank is temporarily unable to accept payment requests." Please try once more."
4. "Bank server unavailable - it appears that your UPI ID provider is not currently accepting payment requests."
5. "Your bank's server failed to respond. Please try once more."
6. “Oops! Something went terribly wrong. (U09), any deducted amount will be refunded within 3-5 working days."
7. "You have exceeded your bank's daily transaction limit."
8. "Your bank's servers did not respond, so we were unable to locate your bank account." Please retry later."
9. "Couldn't get account balance because I entered the wrong UPI PIN too ...
... many times." "Reset your PIN and try again; you may have to wait up to 24 hours."
10. "Uh oh, there was an issue. We were unable to complete this action. Try a different verification or payment method, or get in touch with us."

Why do online payment fail and how to avoid it?
Nothing is more exhausting than seeing a screen that says, 'Payment failed, please try again?' The agony of going through the entire online payment process (even though it only takes a few minutes) is excruciating. Furthermore, many customers give up after experiencing this issue multiple times and simply move on to the next web store.

According to studies, 40% of people do not complete the payment if the failure message appears, resulting in a significant loss for online shops or ecommerce platforms. Consider how bad that is for business.

It is critical not to overlook this issue; online payments are quickly becoming the standard method of receiving payments, so don't ignore it. It may result in cart abandonment and a loss of customers.

Despite the fact that online payments fail for a variety of reasons, any flaw in any of these entities can cause a transaction to fail. Because each payment gateway has its own security measures, data from a single transaction had to pass through several hoops before reaching its destination.

All About Payment Processing
Consider the following as an example of a basic flow data in an online payment transaction procedure:

You most likely have no idea what steps are being taken to ensure payment security. OTPs are one of these measures. They enable authentication and confirm that the person initiating the payment is the rightful owner of the card. When you apply coupons or discounts related to cards, you may need to add some extra steps to the data flow.

Tokenization is one of the examples used by the Reserve Bank of India (RBI) to ensure secure card transactions because it prevents the merchant from accessing actual card details during transaction processing. In order to track transactions and reconcile records, an entity can save the last four digits of the card number as well as the name of the card issuer.

What are the various Types of Online Payment Fail?
Payment failures are classified differently depending on the category.

Failure of online payments by consumers – Incorrect card details, faulty one-time passwords (OTP), or insufficient funds in an account can all lead to incomplete payments through the best online payment gateway.

Failure of the merchant to process an online payment – When there is a technical error or a security problem, a seller can be held liable for these types of failures.

Failure to complete an online payment when a data transfer error occurs – The customer receives a payment failure message, but the payment is processed and the cardholder's account is debited.

Failure to charge an online payment – The payment failed, and there was no debit to the customer's account.

What are the reasons for Online Payment Fail?

Compromised Security
Banks, including issuers, are outfitted with sophisticated technology for detecting and analysing fraud. Almost every party involved in online payment processing must follow security guidelines.

Based on previous spending patterns, fraud detection tools determine whether online transactions are genuine and block or decline transactions if something does not appear to be correct.

Transactions can be declined or blocked for a number of reasons:
The Bank Identification Number (BIN) has been blacklisted – If any red flags are raised on a customer's BIN on the card, the system verifies his identity. When the card's BIN is blacklisted, the transaction can be cancelled. Cardholders who exhibit inconsistent activity are blacklisted and recorded.

A transaction has exceeded the maximum limit – If the merchant specifies a maximum transaction amount, payment gateways may decline the transaction.
Security Threats Exist – If suspicious activity threatens security, the issuing bank may block or decline a transaction.

2. Failures of online payments are caused by additional factors
There are a few more reasons to be aware of when it comes to online payment failure; here are a few that seem to occur frequently:

* The merchant account blocks payments.
* Credit or debit card expiration or cancellation
* An incorrect billing address was entered.
* The bank flagged the cardholder's account.
* The customer's credit card debt has reached the card's limit.
* Payment gateway not configured
* The payment gateway does not support the online payment method chosen by the consumer.
* The consumer's account has been suspended or closed.

3. The Downtime of the system
Payment gateways, payment processors, acquiring banks, and issuing banks are all involved in the online payment process. Every one of them has downtime, no matter how planned it is.

When any of the key players in the transaction experiences downtime, the online payment process fails. When this happens, the transaction cannot be completed, and the online payment process fails.

Considerations for choosing a Secure Payment Gateway
Some online payments will undoubtedly fail. However, you can reduce the number of failed online payments by selecting a payment service provider (PSP) that is secure and offers advanced features, as well as the ability to accept different payment types.

During the payment process, online payments are routed to various parties, including payment processors. Payment Gateways that limit payments to a single processor may result in system outages and failed payments.

Rezorpay uses several payment processors, so you won't get a payment failure notice too soon. You will get more approvals and provide better service to your customers if you route your payments to a different processor.

The following factors should be considered before selecting an online payment gateway provider:

Steps to follow
* A payment flow that is Appropriate
* Selecting the Right Product
* Ensure the safety and security of customers
* Ensure that fees and contract requirements of the service agreement
* Maintain Effective transactional processes
* Ensure that all devices can be used to check out
* The integration process is easy
* Payments on a recurring basis
* Accepting Payments via mobile devices
* A customer service team available 24×7

Tips to help reduce online payment failure
When a payment was previously deemed "failed" by an acquiring bank, the SifiPay payment gateway polls that bank on a regular basis to see if it has been redeemed as a success. If this is the case, the gateway notifies the location where the transaction was completed and where the funds can be collected. There are two possibilities here.

A change in payment status is accepted, payments are collected, and the customer receives the good/service as promised.

In some cases, the online business may be unable to collect the payment because it is unable to provide the agreed-upon service at the agreed-upon time (could be due to delays in shipping, cost of purchase, or inventory issues). Customers receive their money back in their accounts within 5-10 days of receiving the refund.

The most common cause of online payment failures is a lack of security compliance. Although banks and providers bear the majority of the responsibility, merchants can help create a secure payment environment by following these steps.

A number of PSPs and merchants are expected to be required to comply with strong customer authentications (SCA), and in order to accept payments, your website must be SSL certified. SSL certificates protect customer information as it travels between players.

Nothing is more frustrating for a merchant than payment failures caused by their service providers. As a result, choosing a payment processor who can safely process your payment will help prevent payment failures. A small profit is preferable to no profit at all.

Check that the payment service provider complies with PCI DSS level 1. If the service provider meets these standards, it will ensure a high level of payment data security.

Payments failing due to technological errors are less common than security issues. Merchants should select a PSP with a technologically reliable system. Consider the level of support as well. Payments may fail at some point, so selecting a PSP with quick and responsive customer service is critical.

However, as a merchant, you can ask your customers to suggest an alternative payment method if their online payment fails. You can avoid such losses by integrating another online payment service.