What does a declined response signify in a transaction?

A declined response in a transaction indicates that the card cannot be honored for the transaction. This typically happens when the card issuer determines that the transaction should not be approved. Reasons for a decline can include insufficient funds, the card being reported as lost or stolen, or exceedance of credit limits, among others.

Understanding that a declined response serves as a signal that the payment will not go through is crucial for both consumers and merchants to address the issue, whether by using a different payment method or contacting the card issuer for more details. This is a key aspect of the transaction process, as it helps ensure that the funds are available and secure, maintaining the integrity of payment systems.