Routing
Retry logic
Rules that re-attempt a declined transaction across time windows, acquirers, or authentication levels to recover revenue.
Retry logic is a systematic approach to recovering revenue from transaction declines by re-submitting payments according to pre-defined rules. Merchants typically categorise declines into hard declines, such as lost or stolen cards, and soft declines, which may include temporary issues like insufficient funds or technical timeouts. Effective logic accounts for card scheme rules from Visa and Mastercard, which strictly limit the number of attempts permitted within specific timeframes to prevent excessive processing costs and potential scheme fines. Advanced systems may rotate the transaction across different merchant identification numbers (MIDs) or secondary acquirers, particularly if the initial failure was due to acquirer-specific risk thresholds or network downtime. Furthermore, logic can trigger 3D Secure (3DS) authentication on a second attempt if the first went through a frictionless flow but was rejected by the issuer for lacking Strong Customer Authentication (SCA) compliance.
Frequently asked
What are the common scheme limits for transaction retries?
Visa and Mastercard generally permit up to 15 retries over a 30-day period for soft declines, though individual merchant categories may have stricter limits. Exceeding these thresholds can lead to excessive retry fees or placement in compliance monitoring programmes.
How does retry logic interact with SCA requirements?
If a transaction is declined with a code indicating that authentication is required, such as a soft decline for missing SCA, the retry logic should immediately step up the transaction to 3DS. This ensures the next attempt includes the necessary security headers to be accepted by the issuer.
Related terms
A transient decline (e.g. insufficient funds, do-not-honour, generic) that can usually be recovered with retries.
Algorithmic selection of an acquirer or MID per transaction to maximise approval rate, minimise cost, or both.
The process of retrying failed subscription payments and notifying customers to update their card before churning them.
Ready for velocity?
Tell us about your business. We'll match you with the right acquiring partners and the right route, typically inside a week.