Hard Declines KPI

Hard Declines

The Hard Declines KPI tracks the proportion of transaction authorization requests that are definitively rejected by the issuing bank. Common causes include expired cards, closed accounts, suspected fraud, stolen or lost cards, maxed-out credit limits, or invalid transactions. Unlike soft declines, which are temporary, hard declines are final and should not be retried, as repeated attempts may lead to penalties or chargebacks. Associated decline codes include “41” (lost card), “43” (stolen card), or “54” (expired card).

This KPI is critical for merchants as it directly impacts sales and customer experience. Each hard decline represents a lost sale, with 20-40% of subscription business churn attributed to declines, and can frustrate customers, potentially damaging brand reputation.

Monitoring this KPI, supported by detailed decline code analysis, helps merchants identify patterns (e.g., high fraud flags), optimize payment processes, reduce involuntary churn, and implement strategies like account updater services or proactive customer communication to mitigate losses and enhance transaction success rates.