Have you ever had a customer's credit card declined with the mysterious code "65?” Understanding decline codes is crucial for managing your business's finances and customer relationships if you accept credit card payments. Studies show that up to 10% of online transactions are declined, and up to 70% of declined transactions are from legitimate customers, leading to lost sales and frustrated customers.

One of the most common and important credit card decline codes is 65. In this article, we'll dive into the details of decline code 65 and strategies for businesses to handle code 65 declines effectively. Let's get started!

What is a Decline Code 65?

When a customer's credit card transaction is declined, it's typically accompanied by a decline code that indicates the reason for the failed payment. Decline code 65 is one of the most common codes encountered by merchants. It signifies that the cardholder has exceeded their credit limit or reached the maximum number of permitted transactions within a given time period.

It's important to distinguish decline code 65 from similar codes, such as decline code 51, indicating insufficient funds. Understanding this distinction is crucial for properly communicating with customers and helping them resolve the issue.

Reasons for Receiving a Decline Code 65

Several factors and credit situations can contribute to a transaction being declined with code 65:

Credit Limit Exceeded

One of the most common reasons for a decline code 65 is that the credit card holder has exceeded their credit limit. Similar to code 51 (insufficient funds), credit management issues on the customer's end can lead to overcharging a card, so this can happen even with a relatively small transaction if the customer's balance is already close to their current credit limit.

Maximum Transactions Reached

Some credit card issuers limit the number of transactions a cardholder can make within a certain period, such as a day or a month, based on a customer's credit history. If a customer exceeds this limit, further transactions may be declined with code 65.

Impact of Outstanding Balance and Pending Transactions

Pending transactions temporarily reduce the available credit on the account, even if they haven't officially posted to the balance yet. Merchants placing holds or authorizations on credit cards for things like rental deposits or hotel stays can contribute to this issue and trigger a decline code 65.

Potential Fraud or Suspicious Activity

Sometimes, a decline code 65 may be triggered by the card issuer's fraud detection systems. If the issuer notices suspicious activity on the account, they may lower the credit limit or place a temporary hold on the card, leading to declines.

Recent Changes to Credit Limit or Score

The issuer can reduce a cardholder's credit limit if their credit score has recently dropped or if they've missed payments. This lower limit can then lead to decline code 65, even for transactions that would have been approved before.

Steps for Cardholders to Resolve a Decline Code 65

If you're a cardholder whose transaction has been declined with code 65, don't panic. You can take several steps to resolve the issue and get your purchasing power back on track.

1. Contact Your Card Issuer

The first step should be to contact your credit card issuer directly. They can verify the specific reason for the decline and discuss your options for resolving it.

2. Pay Down Your Outstanding Balance

If the decline was due to exceeding your credit limit, paying down your existing balance can free up available credit and allow your transactions to be approved again. Consider making a payment larger than the minimum required to bring your balance well below the limit.

3. Request a Credit Limit Increase

For cardholders with good payment history and credit scores, requesting a credit limit increase from the issuer can provide more breathing room and reduce the likelihood of hitting the limit in the future.

4. Monitor Your Credit Report

Sometimes, a lowered credit limit (and subsequent declines) can result from negative information on your credit report, such as late payments or high balances on other accounts.

Regularly reviewing your credit report can help you identify and address any issues that may be impacting your creditworthiness.

5. Consider Alternative Payment Methods

While working to resolve the issue with your credit card, you may need to use alternative payment methods like a debit card, cash, or another credit card (if available) to avoid interruptions to your necessary spending.

Remember, decline code 65 is a temporary setback, but by taking these proactive steps, you can get back on track and avoid future declines.

How Businesses Should Handle Decline Code 65

Dealing with decline code 65 can be challenging as a merchant, but handling it effectively helps maintain positive customer relationships and minimize lost sales. Here are some strategies to consider:

Communicate Clearly with Customers

When a transaction is declined, communicate the reason clearly and empathetically to the customer. Many customers may not be familiar with decline codes, so explaining that the decline is due to exceeding their credit limit can help them understand the situation better.

Offer Alternative Payment Options

To avoid losing the sale entirely, be prepared to offer alternative payment methods to customers facing a decline code 65. These alternatives can help salvage the sale and demonstrate your flexibility and commitment to customer service.

Implement Fraud Prevention Measures

While decline code 65 is often a result of legitimate credit limit issues, it can sometimes be triggered by fraudulent activity on the account. To protect your business and your customers, implement robust fraud prevention measures proactively to reduce the occurrence of declines.

Partner with Your Payment Processor

Your payment processor can be a valuable resource in managing decline code 65 and other payment issues. They can provide detailed insights into the reasons behind declines, help you optimize your fraud prevention settings, and offer guidance on best practices for handling declines.

Maintain an open line of communication with your processor, and don't hesitate to reach out for support when needed. Many processors also offer tools and resources designed to help merchants manage and minimize declines.

Putting Your Decline Code Knowledge into Action With Zen Payments

Understanding and effectively managing decline code 65 is essential for any business that accepts credit card payments. But by staying informed and being prepared, you can turn a potentially negative customer experience into a positive one and keep your business running smoothly.

So, take the time to educate your staff, review your payment processes, and partner with your payment processor to put your decline code knowledge into action. Your customers and your bottom line will thank you for it.

Need a credit card processing partner? Zen Payments is a trusted merchant account and service provider. Our experience in e-commerce, retail, and high-risk merchant accounts allows you to get processing quickly. Contact us today to get started.