We understand how frustrating it can be when a customer’s payment fails, especially when everything seems to be in order. It’s natural to wonder if our system is responsible. The good news is: Pay Advantage does not decline or block payments. Instead, all approvals and declines come directly from the customer's banking institution.
This article explains how the payment process works, and provides transparency into why payments may not go through, even when things look correct from your side.
🔍Who Decides if a Payment Succeeds?
When a payment is made through Pay Advantage, we act as a secure gateway — facilitating the transaction between you and your customer’s bank. We do not control whether a payment is approved or declined.
Here's what happens:
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Your customer enters their payment details
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Pay Advantage submits the payment to the customer’s bank
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The customer’s bank either approves or declines the transaction
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If declined, the bank provides a specific reason, which we pass back to you unchanged
We understand that it may look like Pay Advantage is responsible when payments fail, but we’re simply relaying the outcome given by the customer’s financial institution.
❌ Common Reasons a Bank May Decline a Payment
Most payment failures happen for reasons outside your or your customer’s control and they don’t always indicate a permanent problem. Below are the most common bank-supplied failure reasons we see:
| Failure Reason | What It Means |
|---|---|
| Insufficient Funds | The account didn’t have enough money at the time the payment was processed. |
| Account Closed | The account used has been closed by the customer or their bank. |
| Incorrect Account Details | One or more account fields (like BSB, account number, or name) are incorrect. |
| Payment Stopped | The customer has asked their bank to stop the payment (e.g., direct debit block). |
| Bank Declined | A generic decline from the bank without a specific reason attached. |
| Limit Exceeded | The amount exceeds the customer's daily or transaction limit. |
| Fraud Flagged | The bank has blocked the transaction as a precaution against suspected fraud. |
| Technical Error | A temporary issue occurred at the customer’s bank, not within our system. |
These messages come directly from the customer’s bank, we don’t edit or create them.
🧭 What You Can Do When a Payment Fails
We know a failed payment can disrupt your business. Here are a few things you can try to resolve the issue quickly:
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Reach out to your customer: In many cases, their bank can clarify the decline and offer a solution.
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Confirm payment details: Even small errors in account numbers or names can cause rejections.
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Encourage retrying: If it was a timing issue (like insufficient funds), trying again later often succeeds.
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Switch methods: Suggest another payment method, like a card or alternate bank account.
And of course, if you're unsure what a failure reason means or how to proceed, we're here to help. Contact our support team anytime.
📋 How We Communicate Payment Status
To keep things transparent, you can always check payment statuses and failure reasons in your Pay Advantage dashboard. You'll see:
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Pending – We’re waiting on a bank response
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Approved – The bank confirmed the payment
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Failed – The bank declined the payment, with a reason shown
If a reason seems unclear or you’d like us to walk you through it, just reach out. We’ll help make sense of it.
We're on Your Side
At Pay Advantage, we’re committed to making payments seamless and stress-free for your business. We know that failed transactions impact your cash flow and your customer relationships and we take that seriously.
While we can’t override the bank’s decision, we’re here to support you, explain the outcomes clearly, and advocate for better clarity and consistency from the banking network.
If you have a payment issue you'd like us to investigate, contact our support team on 1300 641 310, we're happy to help.
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