False declines — sometimes called “false positives” — happen when a customer’s valid order is declined because the business mistakes it as fraudulent.
Approximately 58% of declined transactions are actually legitimate orders. Unfortunately for customers, they’re pretty common. Our original research shows that 25% of respondents experienced at least one false decline in 2022, and 36% of those customers experienced two or more false declines.
A false decline doesn’t necessarily mean that the transaction doesn’t eventually go through. There are two types of declines:
- Hard declines are the result of an error or issue that cannot be resolved immediately. The decline isn’t temporary, and subsequent attempts with the same payment method will likely not be successful. Customers often walk away from false declines angry and embarrassed.
- Soft declines are due to temporary issues and can be retried. Subsequent transaction attempts with the provided payment method information may process successfully. This is dependent on the customer’s willingness to retry the purchase. Only 22% of customers we surveyed said they definitely would try again.
Related Topics
Related Sources
False Declines Industry Report
Understanding the True Cost of False Declines
The State of False Declines in E-Commerce [Infographic]
New Data: Balancing False Declines and Fraud Prevention
Everything You Need to Know About False Declines
Are High Decline Rates Causing You to Leave Money on the Table?
Why a Zero-Fraud Approach Problem Won’t Work