Credit Card Processing

Credit Card Verification: How it Works
Why was my credit card declined?
Authorization Holds
Voided Transactions

Credit Card Verification: How it Works

There are several distinct entities involved in each credit card transaction:  

  1. The customer making the purchase.
  2. The bank that issues the customer’s credit card.
  3. The merchant or business accepting the credit card payment.
  4. And the sponsoring bank that handles consumer credit card transactions on behalf of the business.

Several steps take place within seconds of submitting a credit card transaction:

  1. Authorization:  Whether a credit card is swiped in a brick and mortar store or numbers entered in an online order form, your information is sent immediately to the sponsoring bank to ensure that the credit card transaction may be authorized.  The sponsoring bank then forwards this information to the bank that issued your credit card for verification.
  2. Verification:  In order for this second step to be completed, it is of the utmost importance that the information you enter matches the information that your sponsoring bank has on file for your credit card account.  The issuing bank first verifies that the information provided (billing address, expiration date, CVV number, etc.) matches the information they have on file.  The issuing bank will also check to see if you have enough credit available to cover the amount of the charges.
  3. Approval or Denial:  The issuing bank responds to the sponsoring bank with either an approval or denial.  If your charge is denied, you will be asked to submit an alternate form of payment.  If the charge is approved, the issuing bank will transfer funds to the sponsoring bank in order to cover the amount of the charges.
  4. Final Payment:  Generally, at the end of the day, the merchant will send a request to the sponsoring bank for payment of all credit card transactions for the day.  This is why you may not immediately see a transaction post to your account.  

Why was my credit or debit card declined? 

Incorrect Billing Information

In order to properly authorize and verify your credit card information, requires that you supply the correct billing address information for the credit card provided.  Please ensure that the billing address and zip code used for this purchase matches exactly to the billing address where you receive your credit card statements.  Also, please enter the CVV number exactly as it is listed on the back of your credit card.  

*International credit cards do not provide such verification information, so we require all International Orders to be paid via PayPal.*

It is not uncommon for consumer credit cards to be declined by online merchants because of incorrect billing information.  One of the most common mistakes customers make on check out is entering an incorrect billing address.  It is essential that the billing address entered upon checkout match the address where you receive the billing statements for your credit card. It is very important for credit card users to understand how merchant bank credit card purchases are processed in order to ensure they will have the best customer experience possible.

When using a debit card and the information provided is incorrect (billing address or CVV number) and the order is declined, your bank holds those funds for 3 business days in anticipation that charge is going to be processed.  We do not process credit card information that does not match the billing address.   In 3 business days you should see this “holding” amount released by your bank.  Please check with your credit card provider in regards to the holding amounts, as the card was declined on our end. 

To avoid this in the future, make sure that the billing address and the CVV number match the credit card billing address and do not continue to try and process the debit card.  Please also note that, while we do not process credit cards until the order is shipped, we do authorize the amount for the order to confirm that the funds are available.

Authorization Holds

Customers often try to process an order more than once when it is declined. When this happens, the holding amount remains for 3 days before automatically dropping off of your bank account. We are not in control of the bank’s holding procedure.

Double Holds

If you attempt to process a transaction more than once, you may create what is called a “double hold” on your account. Even if the transaction only completes one time, multiple attempts to process a transaction may cause the authorization hold to display on your bank account more than once. When this happens, your available balance may be lowered, which may result in overdraft fees. We cannot be held responsible for overdraft fees in such an instance. So, it is essential that the customer carefully enter all credit or debit card information correctly to avoid this confusion.

Voided Transactions

While some banks may allow the removal of a hold from an account by the merchant, most banks do not. In most instances, we do not have the capability to remove a hold from your account. While we may be able to void a transaction, if you contact us in a timely manner, you must contact your individual bank if you would like to attempt to immediately remove the associated authorization hold. Otherwise, the authorization hold should automatically fall away from your account within 3 to 10 business days, as long as the merchant does not complete the transaction.

Shop by Category
Featured Sites

Wedding Invitations
by Carlson Craft