What is a Response Code? Definition and Meaning - Ikajo Glossary


Response Code

What is a response code?

Every transaction usually needs several steps to succeed. One of them is a response code. When the transfer goes through the payment system to the financial institution, this institution sends a 2-digit cipher as a reply. After this process the status of the transfer will change according to the response cipher: approved, or declined. The customer will be given a response as soon as possible.

Banks commonly use different codes to define transfers that are approved and declined. For instance, after the processing, the confirmed transaction will be marked A1, but the rejected – U.

There is plenty of RC which the client can receive after the conducted transaction. If the cardholder has a problem with the transfer, he/she must contact the issuing bank to solve this problem. For sure, the client is required to give all data about the undertaking that failed. The representative of the financial institution will help to solve the problem.

Banks use codes to decline or approve transactions as they fasten the whole process. Moreover, there is no space for large messages as the terminal has limited space. To approve the transaction, there should be the following conditions:

  • There are sufficient funds on users account,
  • The card was not claimed stolen,
  • Everything is alright with the account.

The following conditions influence the decline message:

  • Something is wrong with the account,
  • The card was stolen,
  • There are no sufficient funds.
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