If you’re using Karta.io for your transactions, it’s helpful to understand decline rates and what they mean. No need to worry if it sounds complex; this guide will simplify everything for you!
What are Decline Rates and Karta Policy Regarding Them?
Decline rates tell you the percentage of transactions that got declined out of all the transactions you made. To ensure smooth operations, we require decline rates to remain under 10%-12%. If your decline rate exceeds this threshold, your account may be subject to investigation by us and our provider.
How do I check my decline rate?
You can view your decline rate in the "Overview" tab in the bottom-right corner under "Transactions by Statuses."
Why Decline Rates Matter?
Keeping an eye on decline rates is important because:
Bank and merchants' trust: Declined transactions, whether due to exceeded limits, insufficient funds, or other reasons, pose financial risks to both banks and payment systems. Furthermore, the high number of declined payments is causing merchants to lose trust in the bank identification numbers (BINs), making it harder to securely link cards to different services.
Measures from our end: If your decline rate goes over 10%, there may be consequences for your account.
Tips to Reduce Decline Rates
Now, how can you keep those decline rates low? Here are some helpful tips along with an overview of decline statuses and the various reasons behind them:
Ensure Sufficient Balance: Make sure there are enough funds in your account to cover planned transactions.
Image or attachment is not accessible.
Adjust Spending Limits: Increase card spending limits as necessary to prevent declines.
Image or attachment is not accessible.
Remove Unnecessary Cards: Detach any cards you no longer need from merchant services to avoid unnecessary charges.
Transaction was declined due to prohibited merchant category: Payment was unsuccessful because the merchant falls under a category that is restricted by our provider. Certain types of transactions or merchant categories may be blocked as they do not align with the permitted uses of our card services. We recommend reaching out to our support team via live chat for assistance. Our team can investigate the case, and perhaps enable the category to allow future transactions.
Declined "status with the description: "Transaction was declined due to prohibited merchant category" If you’re encountering a decline with this reason, it may be due to several factors. We recommend reaching out to our support team via live chat for assistance. Our team can investigate the cause of the decline—whether it’s a merchant category block by our provider or a potentially resolvable issue. If possible, we’ll work on enabling the category to allow future transactions.
Please keep these tips in mind, and you'll be on your way to smoother transactions with Karta!