When a payment fails, first check your details and funds, then try a different method or retry later; if it persists, contact your bank to understand the decline reason (like fraud flags or limits) or the merchant for specific instructions on updating info or an unpaid order, ensuring you don't retry rapidly without changes.
To fix these errors, try the following steps:
If your payment failed and you were still charged it may be that your bank has taken a pending transaction. This will appear until the transaction is cleared and the money should bounce back to your account. We recommend contacting your bank as they will have further visibility on your pending funds.
What does the retry process look like? Transactions returned for Insufficient or Uncollected Funds will attempt to retry up to two times over the course of 180 days in an automatic process.
To fix a failed transaction, start by checking the payment details to ensure they are correct, such as the card number and billing address. Make sure there are enough funds in the account or card for the payment.
Payments can either be automatically rejected (e.g. where an account has been closed) or returned following a manual review by the payee's bank (who may not be able to accept the payment). In both cases, the money will be sent back to your account immediately and will show as a contra entry on their statement.
Common Causes of Payment Failures
Soft declines are temporary issues like insufficient funds or authentication required. They can usually be retried successfully. Hard declines are permanent failures, such as a stolen card or invalid account, and should not be retried without changes from the customer.
According to the RBI, if a transaction fails but the amount is debited from your account, the funds should be credited back to your account within 48 hours (T+1 day). Keep an eye on your bank statement for entries such as “UPI-REV” or “UPI-RET.” Ensure your account details are correct to avoid delays.
This could happen due to low network connectivity or no response from the receiver's bank. If the Transaction is unsuccessful and the amount is debited, you will receive a refund within 5 working days.
If this occurs, all scheduled payments, except those in “Pending” status, will be cancelled. If your bank rejects a payment, you are still obligated to make your payment on time and in the specified amount.
A Failed Transaction is when a payment doesn't go through due to reasons like poor internet, technical error, wrong details, or insufficient funds.
The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule).
What should I do if my card is declined? First, and obviously, check that you entered your information accurately. If there's still a problem, contact the customer service number for the bank or credit union that gave you the card. They may be able to tell you what the issue is and how to fix it.
Bank transfers can bounce back if there's an error with the account details or if there's insufficient funds. Sometimes, banks will not allow you to make the transfer in the first place but other times, the money might move out of your account and then return within a few working days.
Three actionable payment retry strategies
Try the following:
Declined payments
Insufficient Funds: Usually, payments fail simply because the customer does not have the required funds available in their account to cover the transaction – or because they have exceeded their credit limit. In either case, their bank will typically reject the payment.
Cross-check the details of the beneficiary's UPI ID and account. Make sure you enter your PIN correctly. Make sure you have a good internet connection so that you can transact effortlessly. Wait and retry if the transaction fails due to a temporary issue.
To solve a "payment declined by bank" error, first double-check your card details and billing address, then ensure sufficient funds, and if it still fails, immediately call the bank's customer service number on the back of your card to ask why it was blocked (often a security flag or daily limit) and request they lift the hold. If urgent, try an alternate payment method, but always follow up with the bank to fix the original issue for future transactions.
If your UPI transaction failed but the amount was debited from your account, don't panic. The money will be automatically refunded to your account within 5-7 working days. You can also raise a dispute with your bank if the funds don't reflect after this period.
Incorrectly entered card details are one of the most common reasons card transactions fail. When making a purchase online using a browser or mobile app, it's easy to add an extra digit, incorrect security code or expiry date. If there isn't an obvious numerical error, the billing address may be outdated.