“That’s strange, I have plenty of credit…try the card again.”
“Hogwash!” cries Ginger Hollowell author of “Secrets of Credit Card Processing Fees Revealed” and Owner of the Electric Money Company. https://electronicmoneycompany.com/ “When a card is declined at point of sale, it means the card DOES NOT have enough credit for the purchase. That simple. ”
According to Ms. Hollowell, this scenario, where merchants are asked to keep re-trying declined credit cards is actually a scam that takes advantage of a loop hole found in some credit card processing networks. Continually re-trying cards that have already declined, if done enough times, may render a default acceptance. While this “approval” seemingly demonstrates that the customer was right all along regarding their claim of available credit, it is actually the opposite. “A card may have gone through, but in reality there wasn’t enough credit available. This is extremely risky to the merchant because the customer can now request a charge back from the credit card company, leaving the merchant with a loss. Business owners need to understand that credit card processing does not intermittently decline cards for no reason. Either the card is no good or the CV number has been entered incorrectly.”
Hollowell encourages her merchant service clients to train their employees about this potential hustle. “Cashiers need to realize that a customer requesting that their credit card be retried multiple times may be setting them up to be scammed. They should simply ask the customer for another card or to pay with cash. It’s just not worth the risk.”
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