An Error ND decline is the error received when the cardholder needs to call their issuing bank. More of these have been showing up lately, especially with Card Not Present type transactions. The purpose of this decline by the issuing institution is to combat fraud which is on the rise.
According to LexisNexis Risk Solutions’ 2020 True Cost of Fraud Study: E-commerce/Retail merchants with only physical goods reported 44% of their losses were due to card-not-present fraud, while only 33% were from stolen credit cards. Counterfeit cards represented 19% of their losses, while fake or altered cards only accounted for 12.4%.
The industry has begun to focus on trying to prevent Card Not Present fraud. Remind your customer that their bank/institution is trying to help them. Yes, calling is inconvenient, but it can save the customer and YOU money in the end.