Credit Card Authorization Response Codes

Understanding Credit Card Authorization Response Codes

Credit card authorization response codes are a crucial part of the payment processing landscape. They provide merchants with valuable insights into the status of their transactions, enabling them to make informed decisions about whether to proceed or decline a purchase. In this article, we will delve into the world of credit card authorization response codes, exploring what they mean and how they can impact your business.

Introduction

When you initiate a payment transaction using a credit card, the merchant’s bank sends an authorization request to the credit card network (such as Visa or Mastercard) to verify the cardholder’s account information. The credit card network then responds with an authorization response code, which indicates whether the transaction has been approved or declined. In this article, we will explore the different types of credit card authorization response codes, their meanings, and how they can affect your business.

Key Points

1. Credit Card Authorization Response Codes: What You Need to Know Credit card authorization response codes are a set of standardized codes used by the credit card network to communicate the status of a transaction. 2. Purpose of Credit Card Authorization Response Codes The primary purpose of these codes is to provide merchants with clear and concise information about whether a transaction has been approved or declined, enabling them to make informed decisions about whether to proceed with the sale. 3. Types of Credit Card Authorization Response Codes Credit card authorization response codes are categorized into two main groups: successful and unsuccessful responses.

Successful Response Codes

1. 00**: This code indicates that the transaction has been approved, and the merchant can proceed with the sale. 2. 01**: This code is used when the cardholder’s PIN is required for verification purposes. 3. 02-99**: These codes indicate a successful transaction, but the amount exceeds the available credit or there are other issues.

1. 40XX**: This code indicates that the account has been suspended due to high-risk activity. 2. 50XX**: This code is used when the cardholder’s account is closed or has expired. 3. 61-64**: These codes indicate a declined transaction due to insufficient funds, expiration date issues, or other payment-related problems. 4. 65 XX**: This code indicates a declined transaction due to high-risk activity, such as identity theft or suspicious patterns. 5. 80XX**: This code is used when the merchant’s bank requires additional verification information before processing the transaction.