--- title: "Visa Category 1 Decline Codes: How to Comply" description: Learn how to fight the most common type of fraud and how Visa’s category 1 decline codes can protect your business. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/visa-category-1-decline-codes.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. 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This article explains how these rules impact your online business and steps you need to follow to avoid new fees. ## Increase in Online Fraud Consumers are increasingly making purchases online, fueled by changes in shopping habits adopted during the COVID-19 pandemic. And opportunistic fraudsters have followed suit, with e-commerce fraud escalating. A new study from Juniper Research, “[Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2021-2025](https://chainstoreage.com/study-e-commerce-fraud-will-top-20-billion-2021),” reports that the value of losses due to e-commerce fraud will increase 18% to over $20 billion by the end of 2021 from $17.5 billion in 2020. One of the most common types of fraud is called “[card cycling](https://securityboulevard.com/2020/04/card-cycling-damages-brands-even-if-it-doesnt-happen-in-your-environment/),” a method whereby fraudsters attempt to validate stolen credit card credentials. They write an automated computer script that allows them to quickly cycle through thousands of credit card numbers and test different combinations of security codes and other underlying credentials. Those deemed valid are then used to fraudulently purchase goods for resale, or to sell as verified cards on the dark web. ## The Industry Responds Visa, card issuers and processors recently joined together to implement new measures intended to reduce fraudulent activity, especially as it relates to suspicious cards, such as those that have been canceled or compromised in a breach. Mastercard is expected to follow suit in the near future. Effective April 1, 2021, Visa has grouped a series of decline codes and classified them as “Category 1” transaction responses with a description “Issuer Will Never Approve.” This subset of decline codes indicates the card is blocked for use (such as a stolen card) or never existed. It signals that there is no circumstance in which the issuer will grant an approval. Effective April 1, 2022, merchants who reattempt to authorize a transaction after receiving a Category 1 decline will be assessed a non-compliance fee passed on from Visa. The fee for domestic transactions is $0.10, and international transactions will be assessed $0.15. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## PayJunction Changes and Merchant Best Practices PayJunction has implemented the rules on your behalf. No technical changes are required by you and there is no impact on how you process transactions. Any Visa card that is declined because of Decline Response Category 1 is automatically added to your account’s Blocklist. These include PayJunction [decline codes](https://support.payjunction.com/hc/en-us/articles/213388398-Full-List-of-Approval-Codes-and-Decline-Codes) BT, 04, 12, 15, 57, 62, 78, RC. When attempting to charge a card that was added to the blocklist, merchants will see the following message: “Declined FB. This account has been blocked in PayJunction due to Fraud. You can edit this in your block list." Here are a few best practices to protect your business and avoid the new fees: **Turn on AVS and CVV Matching Requirements** With just a credit card number, fraudsters can put charges on a credit card even if it’s not in their possession. To combat this, businesses can enable Address Verification System (AVS) and Card Verification Value (CVV) to better confirm the authenticity of the purchase. [AVS and CVV](https://blog.payjunction.com/avs-cvv-benefits)numbers are typically harder for fraudsters to get their hands on than card numbers and expiration dates. Simply turning on the option to require this information at checkout will help prevent card testing. **Don’t Unblock Cards** Nobody likes to decline transactions, as there is a risk in turning away good customers. However, in the case of Category 1 codes, merchants should comply with the issuer’s response to “never approve.” PayJunction will automatically add cards with a Category 1 Decline Response to a merchant's block list.  You have the ability to manually unblock the cards; however, we strongly advise not to do so because any subsequent attempt to charge the same card number for any reason will result in non-compliance fees from Visa. These fees can really add up if a fraud bot is attempting card cycling on a stolen card number and making thousands of hits to your website. ## Get updates on future industry news right in your inbox. [Business Tips](https://blog.payjunction.com/topic/business-tips) [Industry News](https://blog.payjunction.com/topic/industry-news) --- ##### [![5 Safe Payment Practices For Fear Free® Veterinary Professionals](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/fear-free-veterinary-payments.svg) 5 Safe Payment Practices For Fear Free® Veterinary Professionals](https://blog.payjunction.com/fear-free-veterinary-payments) ##### [![Spotting Padded Interchange in Your Merchant Statements](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/interchange-padded-unethical-billing.svg) Spotting Padded Interchange in Your Merchant Statements](https://blog.payjunction.com/interchange-padded-unethical-billing) ###### About Author ![Picture of PayJunction Team](https://blog.payjunction.com/hs-fs/hubfs/PayJunction%20Logo%20Cropped%20-%20Vertical%20Grey.png?width=200&height=200&name=PayJunction%20Logo%20Cropped%20-%20Vertical%20Grey.png) ### PayJunction Team Content written by the PayJunction team encompasses broad business topics including marketing, brick-and-mortar business operations and management. ###### Related Posts ## [![How to Streamline Your Online Payment Services](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/online-payment-services.svg) How to Streamline Your Online Payment Services Who doesn’t like doing more with fewer tools? If you run a business that started with a retail presence and has since moved online, you could face a host of providers that tackle different facets of your payment processing needs. While you may like each one for a valid reason, juggling so many providers and bills can open your business up to frustration and confusion.](https://blog.payjunction.com/online-payment-services) ## [![How A Digital Chargeback Management System Can Streamline the Dispute Process](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/chargeback-management-system.svg) How A Digital Chargeback Management System Can Streamline the Dispute Process A Surge in Chargebacks The COVID-19 pandemic accelerated the shift to e-commerce as businesses enacted safe, remote interaction models including curbside servicing, order ahead, and buy online pickup in store. The inability for a business to see a customer in person and run a card-present transaction on an EMV device also means that there is a higher risk for fraud and resulting chargebacks. Some chargebacks—such as duplicate transactions and processing errors—are legitimate, while others are a result of fraud or a customer dispute.](https://blog.payjunction.com/chargeback-management-system) ## [![Credit Card Fraud in America Today](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-fraud.svg) Credit Card Fraud in America Today According to the most recent Nilson Report, $24.26 billion is lost worldwide to credit card fraud on an annual basis, which is comparable to the Gross Domestic Product of nations such as Iceland and El Salvador.](https://blog.payjunction.com/credit-card-fraud) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. 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