Are you an online business owner tired of losing sales due to credit card declines? One of the most common reasons for a payment not going through is decline code 51, which means the customer’s card has insufficient funds. But don’t worry – you can turn these declines into opportunities with the right approach.
In this post, we’ll explain exactly what credit card decline code 51 means and provide actionable steps to handle it effectively. Implement these best practices to save sales, improve your customer experience, and boost your bottom line. We’ll also discuss the key benefits of properly managing code 51 declines for your business’s long-term success.
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What Does Credit Card Decline Code 51 Mean?
Credit card decline code 51 is one of the most common decline codes and indicates that the customer’s payment method has insufficient funds to complete the transaction. This code applies to both credit and debit cards as well as to all credit card networks (Visa, Mastercard, Discover, American Express), but the specific reason for the decline varies slightly between the two types.
Insufficient Funds for Credit Cards
When a credit card transaction receives a response code 51, it means the purchase amount exceeds the card’s available credit limit. This can happen even if the card is not maxed out, as factors such as pending transactions, holds, or recent payments can temporarily reduce the available credit.
Insufficient Funds for Debit Cards
For debit card transactions, decline code 51 signifies that the cardholder’s bank account does not have enough money to cover the purchase. The available balance is lower than the transaction amount, so the payment cannot be processed.
Common reasons for insufficient funds declines include:
- Customer’s account has reached its credit limit or balance
- Recent payments or deposits have not yet cleared in the customer’s bank account
- Holds, pending transactions, or activity limits are reducing available funds
- Unexpected fees or charges have depleted the customer’s credit card balance
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How Online Businesses Should Handle Decline Code 51
When a customer’s payment is declined with error code 51, act quickly to save the sale and maintain a positive customer experience. Implement these strategies to turn declines into successful transactions.
Disable Automatic Retries
Turn off automatic retries from your payment gateway immediately after receiving a decline code 51. Continuing to attempt charges on a card with insufficient funds will only result in additional transaction fees without a successful payment.
Communicate with the Customer
Notify the customer about the declined transaction due to insufficient funds through a clear, friendly message. This can be an on-screen popup, email, or text message. Politely request that they try again with a form of payment. Use helpful phrasing like:
“It looks like the card you entered has insufficient funds at the moment. Would you like to complete your purchase with a different card?”
Offer Payment Plan Options
Present the customer with payment plan options to make the purchase more manageable. You can offer installment plans directly through your business or integrate with a third-party service like Klarna or Affirm. Breaking the total amount into smaller, scheduled payments can help the customer afford the purchase even if they are short on funds.
Provide a One-Time Discount
Consider offering a one-time discount to incentivize the customer to complete their purchase. While this may slightly reduce your profit margin, securing the sale is often better than losing it entirely due to the decline. Frame the discount as a special offer to help them afford the product or service they need.
By implementing these strategies, you demonstrate understanding and flexibility to your customers facing temporary financial challenges. This approach not only saves sales but also puts a positive spin on a negative event.
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Benefits of Properly Handling Decline Code 51
Implementing a smart process to manage payments declined with code 51 offers significant advantages for your online business. By turning these declines into opportunities, you can improve your bottom line while strengthening relationships with customers and payment partners.
Increase Revenue
Properly handling decline code 51 helps you save sales that would otherwise be lost. By offering alternative payment methods, installment plans, and targeted discounts, you encourage customers to complete their purchases despite temporary insufficient funds.
Reduce Chargeback Risk
Preventing repeated attempts on cards with insufficient funds lowers your risk of chargebacks. Customers are less likely to dispute transactions when you communicate clearly about the reason for the decline and provide helpful solutions.
Improve Standing with Payment Processors
Demonstrating proactive fraud prevention measures, like promptly stopping automatic retries on declined cards, enhances your reputation with credit card processing companies. This can lead to better terms, lower fees, and a more collaborative relationship. It also indirectly improves your relationship with card issuers and issuing banks.
Enhance Customer Experience
Properly handling decline code 51 provides a better experience for your customers at checkout. By clearly explaining the reason for the decline and offering useful alternatives to complete the purchase, you show empathy and build trust with your customers.
Foster Long-Term Success
Implementing best practices for managing insufficient funds declines sets your business up for long-term success in online sales. You’ll cultivate loyal customers who appreciate your flexibility and understanding while establishing a track record of responsible online payment processing.
By viewing declines as opportunities rather than lost causes, you can boost your bottom line while strengthening key relationships. Embrace these benefits by implementing a strategic approach to handling credit card decline code 51.