Keeping Customers Satisifed When Transactions are Denied
Recent revisions to Regulation E issued by the Federal Reserve Board may see a slight increase in denied debit card transactions.
Overdraft programs have traditionally been between the consumer and the banks, but the result of recent revisions to Regulation E issued by the Federal Reserve Board that prohibit financial institutions from charging consumers fees for paying overdrafts on everyday debit card and automated teller machine (ATM) transactions unless they opt-in to the overdraft service may result in more denied debit card transactions. This FW Business Press article suggests that businesses can do a lot to keep customers happy when transactions are denied.
"Educate employees about the change so they can offer an explanation to a customer when a debit transaction has been declined. Since this revision is just now taking effect, customers who may have never been declined may be very surprised to have their transactions denied. Since there are many reasons that a transaction could be declined, employees must also understand that the goal should not be to provide a litany of reasons a charge may not have been approved.
"Encourage customers to contact their financial institution When a transaction is declined, employees should immediately advise the customer to contact their financial institution. Employees will not necessarily know why the transaction was declined at that moment."