Online Payment Processing | Credit Card Payment Solutions (2024)

FAQs

Why does my credit card payment say processing? ›

Your credit card payment is processed when the transaction is complete and your issuer has received the funds from your bank account. Again, that can be instant or take up to three business days, depending on where the money is coming from for the payment.

Something as simple as a missed digit on your credit card number, expiration date or CVV security code can trigger a failed transaction. Double-checking the information on your payment form and making sure it matches your billing information may do the trick.

Types of credit card payment failures

Soft declines – Card declined due to issues with transaction processing. The bank issuing funds approves the payment, but the transaction breaks down during the processing stages. Hard declines – Card declined by the bank due to lack of funds or outdated card information.

When attempting to make your purchase, especially online or via mobile app, it's easy to incorrectly enter a digit of your credit card number, expiration date or security code. If that's not the issue, maybe your billing address is outdated. These could all be simple explanations for a declined transaction.

Payment processing is the sequence of actions that securely transfer funds between a payer and a payee. Typically, it involves the authorization, verification, and settlement of transactions through electronic payment systems.

A credit card transaction typically takes about 48 hours to settle. In general, your customers' online payments should clear within 1 to 3 days. The exact processing times can vary depending on the card issuer.

When a payment fails, it is likely due to filters the bank applies to certain transactions made online, or amount limitations applied to the card. If your payment is being rejected, please reach out to your bank to get additional information.

How Long Does It Take for a Credit Card Balance To Update? In most cases, online credit card payments will take between one and three business days to post to your account, and your balance should be updated about the same time.

You entered your card information incorrectly. You have an old address or phone number still on file. You reached your credit limit. Your card has expired.

A credit card decline is when a credit card payment isn't authorized or accepted. There are a few reasons why a customer's card might not work – whether their card has expired, they've spent too much on it, or the issuing bank thinks there might be suspicious activity, among other reasons.

Why do my online payments keep failing? ›

Errors like inaccurate card numbers, an incorrectly-entered expiration date, or a wrong billing address can cause issues during payment. Misconfigured Gateway: For payments to process, payment gateways must be implemented and configured correctly.

Some Common Reasons for Payment Failure

The payment gateway does not support the online payment method chosen by the customer. If the bank flags the customer's account. If the account through which the transaction is initiated is closed or suspended.

What Are Payment Processing Errors? Every major card network has a category of chargeback reason codes called payment processing errors. Payment processing error chargebacks occur when a merchant has made a technical error when processing a payment, such as charging the wrong amount or processing a charge twice.

Your card may be declined for a number of reasons: the card has expired; you're over your credit limit; the card issuer sees suspicious activity that could be a sign of fraud; or a hotel, rental car company, or other business placed a block (or hold) on your card for its estimated total of your bill.

You might not have enough funds in your account to make the payment. Check your account balance or contact your bank.

It generally takes one to five business days for a credit card payment to post to your account. Your payment may even be credited to your account before it posts. In other words, your card issuer may acknowledge receipt of the payment before the transaction is fully processed.

The credit card issuer verifies customer identity and available credit, approves or denies the purchase, and responds to the payment network. The payment network relays this information to the credit card processing company. In return, your customer's transaction is approved or denied.

Credit and debit card transactions are often processed instantly, but funds can take a few days to clear. ACH or Direct Debit transactions typically take 1-3 business days, while wire transfers are usually processed the same day.

One common reason for the delay in debit card payment processing is the security checks conducted by the card issuer and payment networks. These checks are designed to protect against fraud and unauthorised transactions by verifying the authenticity of the transaction and the identity of the cardholder.