Typical reasons for declined transactions are:
- The wrong PIN has been entered
- First transaction in contactless as you need to perform a Chip & Pin transaction to enable contactless payments
- You’ve reached the limit for contactless transactions
- The transaction value is higher than the balance on the card
- The switch that would allow that transaction is not enabled
- You have exceeded the spending limits of the card
- You set a lower monthly spending limit on the card
- The merchant is trying to charge you in your home currency rather than the local currency
These types of declined transactions are usually visible to us.
When we don’t see any declined transactions, it doesn’t mean the transaction did not happen. But it does imply that the issue was on the merchant’s side. The merchant is the place you’re using your card, such as a shop or restaurant. Sometimes the connection between the merchant and the bank fails and other times it’s just that the merchant or machine is offline.
When a merchant is offline, they are unable to access the account of the card to verify that funds are available. A merchant can only request a pre-authorization to have the funds held and then settle the transaction a few days later.
With a bank issued debit card, the merchant allows the transactions, even though he can’t check the balance on the account. This is because the issuing bank guarantees the funds. With prepaid cards there is no guarantee there will be funds in the account when the merchant attempts to settle the transaction.
The merchant therefore declines or refuses to accept the transaction in the first place. This is the case with all prepaid cards and not just WeSwap.