Declined transactions are awkward, but they’re a reality in any business, and you need to know what to do when they come about. After all, you’ve got customers who are ready to spend money with you, but suddenly their card is rejected, and that’s going to feel uncomfortable for everyone, but if you handle the situation in the right way, it doesn’t have to be a disaster. With that in mind, here are some tips on how to handle declined transactions without losing customers - read on to find out more.
Stay Calm And Professional
The first rule of handling a declined transaction is so simple: don’t panic. Your customer probably always feels embarrassed or frustrated, and the last thing they’ll need is any added tension or you making a fuss and calling attention to the issue. That’s why you need to keep your tone calm, professional, and, crucially, non-judgmental (it can happen to anyone, even you, so judging is never a good thing to do).
Just say something like “It looks like the payment didn’t go through, let’s try again” and that can immediately diffuse the situation and put things back on track (and hopefully the card will work a second time).
Offer Clear Explanations
When a transaction fails, it’s usually due to a common issue like lack of funds, expired cards, security concerns, and so on. If you can, explain the reason behind the problem to the customer in a simple way, so they can come up with a solution (like calling their bank or using a different card, for example).
If your system gives you credit card declined codes, it’s good to know what they mean because they’ll help you give a clear answer to the customer, and even if that doesn’t solve the problem there and then, at least they’ll have a course of action to take when they get home. And if it’s just a technical issue, letting the customer know will give them a great sense of relief, which is always good.
Provide Alternative Options
Although a lot of the time another try will see the payment go through (especially if it’s a technical problem or a security question), but if it doesn’t, offering alternatives is key - you’ll still make the sale, the customer won’t be so embarrassed, and the situation can be salvaged. You can ask if they’ve got another card, or you can let them know you take cash, or even look into a payment plan - that’s going to depend on a few factors, but it might be worthwhile having the option ready, just in case.
If the transaction is an online one, you could see if they’re able to check their billing information or offer something like PayPal as a good alternative method of payment. If you can give customers a few options, it shows you’re trying to help, and it also means there’s a much bigger chance of them making a purchase rather than walking away disappointed.
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