What Does EMV Decline Mean & What to Do Next?
Understand EMV declines: learn why your chip card transactions are rejected and how to effectively resolve common payment issues.
An EMV decline occurs when a transaction involving a chip-enabled payment card is rejected by the card issuer or the payment system. An EMV card, often called a chip card or smart card, contains an embedded microchip that enhances security by generating a unique, encrypted code for each transaction. This process makes it significantly more difficult for fraudsters to replicate card information compared to older magnetic stripe technology. Understanding the reasons behind an EMV decline is a first step in resolving the issue.
Common Causes of EMV Declines
Numerous factors can lead to an EMV card being declined during a transaction. One frequent reason is insufficient funds, meaning the account linked to the card does not have enough money or available credit to cover the purchase. Another common issue involves incorrect personal identification number (PIN) entry, where multiple failed attempts to enter the correct PIN can result in a transaction rejection.
Card expiration dates also play a role in declines, as transactions attempted with an expired card will not be processed. Cardholders still need to ensure their card is current. Card issuers actively monitor for suspected fraudulent activity, and any transaction deemed unusual or out of the cardholder’s typical spending patterns can trigger a decline. This can manifest as a “Do Not Honor” message from the bank, indicating a general refusal without a specific reason.
Technical problems, either with the card, the payment terminal, or the network connecting them, can also cause declines. This includes instances where the card’s chip is physically damaged or dirty, preventing the terminal from reading it properly. Similarly, issues like a faulty card reader, misconfigured terminal software, or temporary network outages between the terminal and the bank can interrupt the transaction process. Lastly, cards often have pre-set daily spending or withdrawal limits, and attempting a transaction that exceeds these thresholds will result in a decline.
Immediate Actions After a Decline
When an EMV card is declined at the point of sale, there are several immediate steps a cardholder can take. Initially, it can be helpful to try the card again, as some declines are temporary due to minor network glitches or communication errors. If the transaction still fails, inspect the physical card for any visible damage to the chip, such as scratches or cracks, or check if the chip appears dirty. Gently cleaning the chip with a soft, dry cloth might resolve issues related to dirt or debris preventing a proper read.
It is also prudent to confirm the transaction amount being processed to ensure it aligns with the intended purchase. If the chip transaction continues to fail, and the card has a magnetic stripe, attempting to swipe the card can sometimes work as a “fallback” option. This allows the transaction to proceed using the magnetic stripe data, though it is generally less secure than a chip transaction. If these steps do not resolve the issue, having an alternative payment method, such as another card or cash, can ensure the purchase is completed.
Resolving Persistent Declines
If immediate actions at the point of sale do not resolve an EMV decline, or if declines become a recurring problem, further steps are necessary. The most direct course of action is to contact the card issuer’s customer service department immediately. Card issuers can access specific decline codes and provide the precise reason for the transaction failure, which is information not typically displayed to the cardholder at the terminal. This direct communication helps in understanding whether the issue stems from an account-specific problem, such as a hold, or a technical error.
Many banks have sophisticated fraud detection systems that monitor spending patterns and may flag unusual activity, leading to a decline. If a transaction is suspected of fraud, the card issuer might require verification from the cardholder to unblock the account. Informing your bank about international travel or significant out-of-state purchases can still prevent potential declines due to suspected unusual activity. Such notifications can often be set up through the bank’s online banking portal or mobile application.
Regularly checking online banking or mobile app for account activity, available balances, and any alerts can provide early indications of potential issues. If the card’s chip is consistently malfunctioning despite cleaning or repeated attempts, it may indicate physical damage or a manufacturing defect. In such cases, requesting a replacement card from the issuer is advisable. Banks also have dedicated fraud departments that investigate unauthorized transactions and can assist in resolving issues once reported.