Introduction
The cashless economy thrives on card payments and Point of Sale (POS) terminals, making them essential tools for both businesses and customers. Whether it’s a street vendor accepting card payments or a large mall processing hundreds of transactions daily, the reliability of these systems can make or break the customer experience.
Yet, despite how seamless they often appear, card and POS transactions can sometimes fail. This typically leads to confusion, frustration, and even loss of sales. From “Card Declined” messages to unexpected “Transaction Timeout” errors, these issues can disrupt business operations and sow doubts in customers. Thankfully, with reliable solutions like the Remita POS, a part of Remita agency banking, these issues can be quickly resolved or avoided altogether.
The good news is that most of these problems have straightforward explanations and practical solutions. In this article, we explore some common card and POS errors, why they happen, and what both merchants and customers can do to resolve them quickly and efficiently.
Whether you’re a business owner looking to keep transactions smooth or a customer who wants to better understand what’s going on when a payment fails, this article has got you covered.
How Card Payments Work
Before exploring errors and their solutions, it helps to understand what happens behind the scenes when a card payment is made. A card transaction might take only a few seconds, but in that brief moment, a lot of communication occurs between multiple systems to authorize and complete the payment.
Here’s a breakdown of the process:
- The cardholder initiates the transaction
The process starts when a customer, also known as the cardholder, presents their card physically or digitally at a merchant’s POS terminal. The card can be inserted (chip), or the card details entered manually.
- POS terminal captures and sends the data
The POS device reads the card information and sends the transaction details (amount, merchant ID, card number, etc.) to the payment processor.
- Payment processor routes the transaction
The processor acts as the middleman, forwarding the transaction request to the customer’s bank, also known as the issuing bank.
- The issuer validates and authorizes
The issuing bank checks if the transaction is valid, and if everything checks out, the issuer authorizes the payment and sends a response back through the chain.
- Response travels back to the POS
The authorization (or decline) response travels back to the payment processor, then to the POS terminal. If approved, the terminal prints or displays a confirmation. Otherwise, it shows an error message.
- Settlement happens later
Although the transaction is approved instantly, the actual movement of funds settlement typically occurs in batches at the end of the business day or the next day.
Common Card Errors and How to Fix Them
When a card transaction fails, it’s often due to reasons tied directly to the cardholder’s account or card settings. These errors usually originate from the issuing bank and are communicated back to the POS terminal with a brief message or code. Here are some of the most common card-related errors and how to resolve them:
- Insufficient Funds
This means that the customer’s account does not have enough money to cover the transaction. This may occur due to a low account balance, pending transactions.
Solution:
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- The customer can try another card or payment method.
- Encourage them to top up their account balance.
- Merchants can offer split payment options if supported.
- Card Declined
This occurs when the payment service provider has declined the transaction without specifying a detailed reason. This may happen if the transaction is flagged as suspicious by the fraud detection system or if the card is not authorized for certain types of transactions (e.g., international purchases). In some cases, there may be temporary restrictions placed on the account.
Solution:
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- Ask the customer to contact their bank immediately for clarification.
- Suggest using a different card.
- For recurring issues, the cardholder may need to update card settings or limits via their mobile app.
- Card Expired
This means the card’s expiration date has passed, so it is no longer valid for transactions. Every card has a lifespan (usually 3–5 years) after which a new one is needed to continue carrying out transactions.
Solution:
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- Suggest an alternative method of payment (USSD, transfer).
- Advise them to check for a replacement card or request one from their bank.
- Incorrect PIN
The Personal Identification Number (PIN) entered doesn’t match the one linked to the card. This happens when the customer enters the wrong PIN.
Solution:
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- Allow the customer to retry (but beware of card lockout after 3 failed attempts).
- Suggest an alternative method of payment (USSD, transfer).
Common POS Terminal Errors and Fixes
Sometimes, it’s not the card that’s the issue—it’s the Point of Sale (POS) terminal. While card-related errors are usually tied to the customer’s bank or account, POS errors are more technical and usually from the device itself, the network, or communication failures between systems.
Here are some common POS-related errors and how merchants can address them quickly and effectively:
- POS Terminal Offline
The terminal is not connected to the network and can’t process transactions. This may occur if there is poor or no internet connectivity, or if the terminal software or firmware of the POS is not updated, or if the payment processor is having downtime.
Solution:
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- Check the terminal’s network signal or connectivity status.
- Restart the device to refresh the connection.
- Switch to an alternative connection (e.g., mobile hotspot, backup SIM).
- Transaction Timeout
The transaction took too long and failed to complete. This may occur due to an unstable network connection, communication delay with the processor or if the terminal was idle or unresponsive for too long.
Solution:
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- Retry the transaction immediately.
- Ensure the device has a strong network signal.
- If timeout errors are frequent, consider updating the terminal software or replacing older hardware.
- Connection Error / No Response from Host
The terminal could not establish a connection with the payment processor’s server. This may be due to server downtime on the payment provider’s end or ISP issues.
Solution:
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- Reboot the terminal and ensure stable connectivity.
- Confirm with your provider if their servers are experiencing downtime.
With the Remita POS, you benefit from a robust, stable system built to minimize disruptions. In the rare event of an error or issue of any sort, Remita’s multi-channel support (POS, mobile app, banking agents, customer support) offers immediate fallback options, ensuring business does not stop. It is also important to note that with Remita, merchants get clear prompts and dashboards that aids understanding of business progress, needs, transactions and general business insights.
General POS Tips
While card and POS errors are sometimes unavoidable, many of them can be prevented or resolved quickly with a bit of preparation and technical know–how. Staying proactive not only reduces the chances of failed transactions but also improves customer trust and keeps your business running smoothly.
- Keep POS Terminals Updated
POS devices require regular updates to stay functional and secure. Software or firmware updates often contain bug fixes, performance improvements, and compatibility enhancements for newer cards and networks.
- Ensure a Stable Network Connection
A significant number of POS errors occur due to weak or unstable internet connections. Without a reliable network, transactions may time out or fail to reach the payment processor altogether. It is advisable to use POS terminals with backup SIMs or the ability to switch between Wi-Fi and mobile data, like Remita POS.
- Train Your Staff
Even the best hardware can’t prevent issues if the person operating it isn’t equipped to handle minor glitches. Employ and train staff to respond calmly and confidently to errors as this can save sales and reduce frustration.
- Maintain Contact with Your Payment Service Provider
Building a strong relationship with your POS provider can make a big difference when issues arise. Timely support can help resolve escalated issues before they impact your business or revenue. Use merchant dashboards or portals provided to monitor transaction status and settle disputes.
- Perform Routine Hardware Checks
POS terminals are physical devices that can suffer from wear and tear. Dirty chip readers, faulty keypads, or worn-out batteries can all cause transaction failures. Ensure you clean card readers regularly with approved cleaning kits and inspect cables, batteries, and chargers to ensure they’re in good shape.
Conclusion
The type and quality of the POS terminal used for your business may make or mar your sales process. Quality POS terminals like the Remita POS terminals can make all the difference. Not only are our POS terminals the best in the game, but you are also assured of guaranteed access to customer service officials who are always available to guide you through any issues.
Card and POS errors can disrupt transactions, frustrate customers, and cause unnecessary revenue loss, but they don’t have to. Payment issues may never be completely avoidable, but how quickly and confidently you respond can make all the difference.
The next time a card or POS error occurs, take note of the type of error and troubleshoot accordingly.
With Remita’s reliable POS system, responsive support and nationwide network of agents, you can navigate card transaction issues confidently. Remita makes card and POS payments easier, faster and even more secure.
