Declines, Authorization, and Transaction Behavior
What Causes AVS or CVV Mismatches?
AVS mismatches occur when the billing address provided does not match the address on file with the issuing bank. CVV mismatches happen when the card security code does not match the code associated with the card.
Mismatches can be caused by data entry errors, outdated customer information, or fraud attempts. A mismatch does not automatically mean a transaction is fraudulent, but it may increase risk signals.
How mismatches are handled depends on gateway configuration and network rules.
What is the Difference Between Soft and Hard Declines?
Soft declines are temporary and may be resolved by retrying the transaction, correcting information, or using a different payment method. Examples include insufficient funds or temporary issuer restrictions.
Hard declines indicate a more permanent issue, such as an invalid card number or a closed account. Retrying a hard decline typically does not result in approval.
The classification of declines is determined by the issuing bank.
How can Merchants Troubleshoot High Decline Rates?
High decline rates usually mean a higher percentage of transactions are being rejected before they can be approved. Troubleshooting starts with identifying where and why declines are happening, then making targeted adjustments based on the pattern.
Step 1: Separate the two main decline types
- Issuer bank declines: the customer’s bank rejects the transaction (common reasons include insufficient funds, suspected fraud, card restrictions, or verification failures).
- Processor or Gateway-related declines: issues tied to how the transaction is being submitted or validated (for example, incorrect data formatting, configuration issues, or failed security checks).
Step 2: Review decline reasons and look for patterns
Common troubleshooting steps include:
- Review decline codes and responses and group them by reason
- Compare declines by payment method, card type, issuer, country, device, and traffic source
- Check whether declines increased after changes to pricing, checkout flow, subscription logic, or fraud settings
- Validate that required transaction data is being submitted correctly (for example, billing address fields, AVS, CVV, and recurring indicators when applicable)
- Confirm that your billing descriptor and customer support contact details are clear, so customers recognize the charge and complete verification steps
Step 3: Confirm configuration and risk settings
High declines can also be driven by settings that are too strict for your customer base, such as:
- Overly aggressive fraud filters or velocity rules
- Incorrect recurring billing flags
- Mismatched billing address collection requirements
- Authentication and verification rules not aligned to your transaction flow
Step 4: Improve performance through structured optimization
Improving authorization rates often involves combining better data quality with routing, risk tuning, and operational adjustments. Changes are typically evaluated over time to confirm they improve approvals without increasing fraud or Chargebacks.
Our Merchant Success team works with you during payment optimization plans to review decline trends, interpret decline data, identify likely causes, and recommend adjustments to improve authorization performance based on your setup. This can include reviewing Gateway configuration, transaction data quality, and routing strategy where applicable. Final approval decisions are made by the customer’s issuing bank and the acquiring ecosystem supporting your Merchant Account.
What Steps Can Help Improve Authorization Rates?
Steps that may help improve authorization rates include ensuring accurate transaction data, maintaining consistent processing patterns, using appropriate fraud tools, and aligning payment flows with what was approved during Underwriting.
Reducing unnecessary retries, improving customer communication, and monitoring decline trends can also help. No steps can guarantee approval, as final authorization decisions are made by issuing banks.
Easy Pay Direct supports merchants by helping analyze trends and optimize configurations within approved parameters.