Friday, December 23, 2011

Mastercard Problems over the Last six months

We had a terrible problem over the last six months with Master Cards being declined for no apparent reason. I"m writing about it here for two reasons.

1. I haven't been able to find any coverage of this anywhere online. In fact, I can't find a decent news source that covers payment processing issues. If you know of one, please tell me (by comment).

2. To help others that might have the same problem.

The problem is that we get customers calling up saying that there card is fine but we get it declined. When we asked, we were told by our ISO:

MasterCard says their cards have been getting converted at several million cards per day and that they
expect all of them to be fully converted by the end of Jan 2012. Their number on the cards
still not converted is less then 1%.

The conversion is to what they call "Secure Code" and cards that don't have it need to have it
or it cannot be used online.

There's nothing that can be done on the merchant, gateway or processor end and
it's all up to the card issuing Banks or Credit Unions to make the change. In the meantime they
said to ask customers who get a decline to call their issuer and ask them to add
the "Secure Code" to their card. This will allow them to use the card online without any problems.
Visa says their cards are pretty much all converted and there are very few getting declines
that shouldn't be. The few that are getting declined will have to be updated by the
customer's Bank and they're done with it.