Free credit card payoff calculator for finding the best way to pay off multiple credit cards and estimating the length of time it would take. Or, learn more about credit card payback, experiment with other debt payback calculators, or explore hundreds of other calculators addressing topics such as math, fitness, health, and many more. Secured Credit Card with Savings Account. Earn Cash Back on everyday purchases. Apply online and then visit a TD Bank to open a Simple Savings account. $29 annual fee.Terms and conditions.
- Credit Card Wizard 1430
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This calculator creates a cost-efficient payback schedule for multiple credit cards using the Debt Avalanche method. To evaluate the repayment of a single credit card only, or for further information about credit cards and how they work, please visit our credit card calculator.
Why Have More Than One Credit Card?
Given a qualifying credit score, it is fairly common for people to have more than one credit card; in the U.S., Americans average more than 2 cards per person. There can be many reasons why it can be beneficial to have more than one, and some are listed below:
- Multiple Perks—The main benefit of carrying multiple credit cards is that there are many different types with different benefits. Such as rewards credit cards that provide their users with different rewards like airline mileage, hotel bookings, or retail discounts based on spending; balance-transfer credit cards that temporarily allow the incurrence of debt without interest; or business credit cards that help separate personal expenses from business ones for tax reasons, and much more.
- More Available Credit—Another useful advantage is that there is more available credit for the cardholder to use. While a single credit card with a credit limit of $5,000 only allows the cardholder to charge up to $5,000 at a time, having two cards each with a credit limit of $5,000 will allow the cardholder to charge up to a maximum of $10,000 at a time.
- As Backup—It can help to have a backup card in some cases when one credit card is not accepted at a specific merchant, or is lost or stolen.
- Diversify Spending—The higher the purchase volume on any one credit card, the greater the financial consequences of having the card hacked. Diversified spending across multiple cards can reduce the damage in case of fraud.
- Increase Credit Score—Believe it or not, having many credit cards can actually boost a person's credit scores. Credit bureaus use a measure called credit utilization ratio (CUR), which is a number of how much is owed on all revolving accounts divided by total available credit. For example, if a person has one credit card with a credit limit of $4,000 and another with $6,000, and spends a total of $3,000 on them in a month, their CUR for that month is 30%. Low CURs affect credit scores positively.
Drawbacks of Multiple Credit Cards
As fruitful as the benefits of having multiple credit cards can be, there are some general disadvantages to take note of.
For one, it is quite common for people to mismanage their credit card usage in some way, and the biggest culprit is overspending. Statistics have shown that credit card debt is mostly due to spending more than what is affordable on unnecessary purchases, emergency services (medical and non-medical), necessities not covered by income, and necessities during unemployment. Unnecessary purchases are the largest contributor to credit card debt in the U.S.
Unfortunately, credit cards are a form of unsecured loan with relatively high interest rates with late payment fees, and the penalties become steeper if timely payments are not made consistently. More credit cards will mean more to manage, including separate monthly payments, different due dates, etc.
For more information about or to do calculations involving budgets, please visit the Budget Calculator.
Debt Avalanche Method
There are multiple ways to approach paying off credit card debts each month. The Credit Cards Payoff Calculator uses a method known as the 'Debt Avalanche method.' The calculator also assumes that no further transactions are made on any of the credit cards, minimum payments stay the same, and interest rates are static. Credit card issuers are required to give 45 days' notice to raise the interest rates, and they can only do so after the first year.
The debt avalanche method prioritizes the minimum monthly due on all credit cards. The 'Monthly Budget Set Aside for Credit Cards' will be spent on these first. After the minimum monthly dues have been paid, any remaining funds will go to the highest interest credit card, followed by the next highest, until there are no more funds or all of the cards have been paid off.
Debt Snowball Method
While the calculator uses the Debt Avalanche method, the Debt Snowball method is an alternative for people who cannot find success using the former. This credit card payoff strategy focuses on psychological factors like motivation and incentive to keep people on track towards paying off their credit card debt. The two methods are similar in that the first priority is always to meet the minimum payments due for each credit card in order to avoid hefty fees. After this, the Debt Snowball strategy is quite simple: pay off the credit card with the smallest balance, regardless of interest rate.
Although this strategy may be less efficient in that it prioritizes motivational and psychological factors for paying off debt, rather than minimizing the amount of money spent to pay off said debt, it can be a more effective method for paying off debt for certain people. Psychologically, people are more likely to adhere to something when tangible progress is visible, whether it's the elimination of debt, shedding a certain number of pounds, getting a certain grade, or any other task. In the end, a person should choose a method that is most likely to enable them to reduce and eventually eliminate their debt rather than increase it.
Tips for Managing Multiple Credit Cards
- Change due dates—Many credit card issuers allow a person to change the monthly payment due date. Doing so allows a person to schedule multiple credit cards' due dates on the same day of each month to minimize the hassle of tracking the due dates of each card.
- Set up automatic payments—Taking advantage of automatic payments can help reduce the possibility of missed payments.
- Eliminate unnecessary credit cards—It'd probably be a good idea for anyone struggling to manage multiple credit cards to get rid of the cards they rarely use, especially if they carry annual fees. For instance, most people generally don't need three rewards cards with similar benefits. In addition, spending for each card should be tailored towards their perks; for example, a person with a frequent flyer card and a card with no foreign transaction fees can use the former to book a flight but use the latter for actual transactions abroad. Otherwise, all spending can just be placed on one simple card instead.
Dealing with High Interest Rates
- Apply for credit cards with lower interest rates and transfer the balances of the high interest rate cards over. Be sure to read and understand the interest rates for balance transfers, fees, and other terms that may apply.
- Most credit card issuers calculate interest based on the average daily balance, not the balance at the end of the month. The earlier or more that is paid towards a credit card balance, the lower the average daily balance. This means that although most people usually pay once a month at the end of the month, they can save on interest through multiple payments a month, such as every two weeks or even every week.
- Apply for loans with relatively low interest rates and use them to pay off credit cards with higher rates. Taking out a line of credit on your home, refinancing your home, or seeking out personal loans are good alternatives. Be sure to understand the fees and costs pertaining to loans. Use our Personal Loan Calculator to estimate the real APR of the loan, which should be at least a few points lower than the credit card interest rate for this strategy to work.
- Contact credit card companies to try to negotiate lower interest rates or balances. Most of the time, this won't work until a person has stopped making monthly payments, which is generally not recommended due to its negative impact on other areas of personal finance.
Understanding Card Failure Codes
Credit card declines occur when the payment transaction cannot be processed. There are a range of reasons that this may happen: a decline from the payment processor, the payment gateway, or (most commonly) the issuing bank. Associated with the declined payment is a failure code and reason provided to the merchant.
There are two categories of credit card declines: hard declines, and soft declines. Hard declines occur when the payment is refused by the issuing bank, and the customer should contact their bank to resolve the issue. Soft declines occur when the transaction has been approved but there is an issue in completing it. Typically in these instances, the payment can be retried and will go through.
Below is a guide to the most common credit card failure codes and some recommended actions to take when they occur.
Here is a quick glossary of commonly-used terms to be sure the definitions are clear:
Card Issuer – Refers to the financial institution that issues credit cards. This is not MasterCard or Visa, but the bank or credit union where the card account is held.
Card Holder – A person who has a credit or debit card. Essentially, this is the person whose name is on the card account, or the card itself.
Terminal – Also known as a payment terminal, POS (point of sale), EFTPOS, or credit card terminal, this is the device which interfaces with payment cards in order to process the electronic funds transfer transactions.
Payment Processor (PSP) – Typically a third party, a PSP is assigned by a merchant to handle the processing of payments through various means, such as cards and checks, online or at in-person terminals.
CID – Credit Card Identification Number. This is a 3-digit code in the signature panel on the back of Visa, MasterCard, and Discover cards. The CID for American Express is 4 digits on the front of the card.
CVV/CVV2 – Card Verification Value 2. The CVV is a code embedded into cards which is passed when a card is scanned at a POS or ATM. The CVV2 is akin to the CID (see above) and is printed on the physical card and is used during check out for an additional security measure.
Failure Codes
Failure code: 01
Response text: Call
Failure code definition: Refer to Card Issuer
Explanation:
The issuing bank is preventing the authorization of this transaction.
The specific reason for this decline is unclear, and the card holder should contact the issuing bank for more details. Once the problem has been addressed and resolved, the issuing bank will confirm with the card holder that they will authorize the transaction, and and the merchant may attempt to process this payment again.
If the problem cannot be resolved, request an alternative card or payment method.
Failure code: 04
Response text: Hold-call or Pick Up Card
Failure code definition: Pick Up Card
Explanation: The issuing bank is preventing the authorization of this transaction.
Recommended action: The card holder should contact the issuing bank for more details. Once the problem has been addressed and resolved, the issuing bank will confirm with the card holder that they will authorize the transaction, and and the merchant may attempt to process this payment again.
If the problem cannot be resolved, request an alternative card or payment method.
Failure code: 05
Credit Card Wizard 1430
Response text: Decline
Failure code definition: Do Not Honor / Card Declined by Issuer
Explanation: The issuing bank is reporting an issue and advising the merchant not to accept this card.
Recommended action:The card holder should contact the issuing bank for more details. Once the problem has been addressed and resolved, the issuing bank will confirm with the card holder that they will authorize the transaction, and the merchant may attempt to process this payment again.
If the problem cannot be resolved, request an alternative card or payment method.
Failure code: 07
Response text: Hold-call
Failure code definition: Pick Up Card, Special Conditions
Explanation: The issuer has detected fraudulent activity on the cardholder’s account, so the transaction is not authorized.
Recommended action: If this is a return customer who has previously completed a successful payment, request an alternative card or pay method and advise the customer to review their account with the issuer. If this is a new customer or someone making a one-time payment, it is best to assume this is a fraudulent use of the card. Do not provide this customer with any goods or services, and do not attempt to run the card again.
Failure code: 12
Response text: Invalid Trans
Failure code definition: Invalid Transaction
Explanation: This transaction is unsupported or otherwise invalid. This code may be displayed when attempting to refund a credit payment, for example.
When working with a secure payment processing solution, these errors should be detected before the transaction is submitted for authorization, meaning this code will rarely – if ever – appear. Should you receive this failure code, check the payment type and payment details, and correct them as necessary. Once the problem has been addressed on the merchant side, attempt to process the payment again.
Failure code: 13
Response text: Amount Error
Failure code definition: Invalid Amount
Explanation: The transaction is invalid because the amount requested for processing is either negative, or non-numeric.
Recommended action: A simple correction can be made by checking the payment amount and adjusting it. Once the amount has been fixed, proceed with the transaction again.
Failure code: 14
Response text: Card No. Error
Failure code definition: Invalid Card Number
Explanation: The card number is invalid.
Recommended action: Review the card number and correct it before attempting to process this transaction again. If there are recurring payments scheduled, be sure to stop them once the invalid card number is found. Merchants will incur an authorization fee for each attempted transaction with an invalid card number.Review the card number and correct it before attempting to process this transaction again. If there are recurring payments scheduled, be sure to stop them once the invalid card number is found. Merchants will incur an authorization fee for each attempted transaction with an invalid card number.
Failure code: 15
Response text: No Such Issuer
Failure code definition: No Such Issuer; Decline
Explanation: This failure code indicates that the first digit of the card number is invalid, as it does not match a card issuer number.This failure code indicates that the first digit of the card number is invalid, as it does not align with any card number from this issuer.
Recommended action: Check the first digit of the card number, correct it, and attempt the transaction again.Check the first digit of the card number, correct it, and attempt the transaction again.
Failure code: 19
Response text: Re Enter
Failure code definition: Re-Enter Transaction
Credit Card Wizard 142
Explanation: There was an unknown error.
Recommended action: Attempt the transaction again. If repeated attempts are unsuccessful, contact your PSP for assistance.Attempt the transaction again. If repeated attempts are unsuccessful, contact your PSP for assistance.
Failure code: 28
Response text: No Reply
Failure code definition: File Update File Locked
Explanation: A temporary error has caused the payment authorization to fail.A temporary error has caused the payment authorization to fail.
Recommended action: Attempt the transaction again. If repeated attempts are unsuccessful, contact your PSP for assistance.Attempt the transaction again. If repeated attempts are unsuccessful, contact your PSP for assistance.
Failure code: 41
Response text: Hold-Call
Failure code definition: Lost Card – Pick Up
Explanation: The card being used for this transaction has been reported lost or stolen by the card holder. No attempted payments on this card will be authorized.
Recommended action: If this is a new customer making a one-time payment, assume this is a fraudulent purchase. Do not provide goods or services, and do not attempt to process this transaction again.
If this transaction is part of a scheduled or recurring payment, it’s possible that the card holder has filed a lost or stolen report for the card since the last successful transaction occurred. Contact the customer for a new card number, or another payment method. Be sure to update future payments to the new card number.
Failure code: 51
Response text: Decline
Failure code definition: Insufficient Funds
Explanation: This card account is over the holder’s credit limit, or will go over the limit of this transaction is completed. The issuing bank is therefore declining the transaction.
Recommended action: Ask the card holder to contact their issuing bank to request a credit limit increase. They can also make a payment on their account, in certain circumstances, to have more credit available. Once this problem has been addressed and the issuing bank has confirmed there is credit available, process the transaction again.
If the problem cannot be solved, request another card from the customer, or use an alternative payment method.
Failure code: 54
Response text: Expired Card
Failure code definition: Expired Card
Explanation: This card has passed its expiration date and is now invalid. This code is common with recurring or scheduled payments.
Recommended action: Contact the customer to ask for an updated expiration date or card number. Update the customer’s account to reflect these new details. Future payments will automatically update, including existing recurring payments.
Process this transaction again as a one-time payment, even if it was part of a scheduled or recurring payment.
Failure code: 57
Response text: Serv Not Allowed
Failure code definition: Transaction Not Permitted to Cardholder
Explanation: The card being used does not allow the type of transaction that is being attempted for this payment.
Recommended action: Ask the customer to contact the issuing bank to request permission for this transaction. Once the issuing bank has confirmed that they will authorize the transaction, process it again.
If the problem cannot be solved, request another card from the customer, or use an alternative payment method.
Failure code: 58
Response text: Serv Not Allowed
Failure code definition: Transaction Not Permitted to Terminal
Explanation: The attempted transaction cannot be processed by the merchant account, because it has not been set up. For example, attempting to process a payment using an American Express card without having the appropriate configuration.
Recommended action: Contact the PSP to ensure the merchant account is configured for all required payment types.
Failure code: 62
Response text: Decline
Failure code definition: Restricted Card
Explanation: Either the merchant account is not configured to process the requested transaction type, or the customer’s card has restrictions for online or international payments.
Recommended action: Contact the PSP to ensure the merchant account is configured for all required payment types.
If the card is the reason for the failure, ask the card holder to contact the issuing bank for more details. Once the problem has been resolved, process the transaction again. If the problem cannot be resolved, request another card or alternative payment method.
Failure code: 63
Response text: Sec violation
Failure code definition: Security Violation on Credit Card or Machine
Explanation: The CID or CVV2 code provided with the transaction request does not match the one associated with the card number.
Recommended action: Check the code and ask the customer for the correct one. It is also possible to attempt the transaction again without a CID or CVV2, but merchants should be aware that an invalid code may signal fraudulent card use.
Failure code: 65
Response text: Decline
Failure code definition: Exceeds Withdrawal Frequency Limit
Explanation: Transaction not permitted because the daily maximum credit limit for the card holder has been reached, or will be exceeded if this transaction is approved.
Recommended action: Ask the card holder to contact their issuing bank to request a credit limit increase. Once this problem has been addressed and the issuing bank has confirmed there is credit available, process the transaction again.If the problem cannot be solved, request another card from the customer, or use an alternative payment method.If this is a first-time customer or a one-time purchase, merchants should be aware that this transaction may be fraudulent.
Failure code: 85 or 00
Credit Card Wizard 14 Hp
Response text: Retry
Failure code definition: Issuer System Unavailable
Explanation: A temporary communication error has caused the authorization to fail.
Recommended action: Attempt to process the transaction again. If repeated attempts are also unsuccessful, contact the PSP for assistance.
Failure code: 85
Response text: Card OK
Failure code definition: No Reason to Decline
Explanation: An unknown error has caused the authorization to fail, but there is no issue detected with the card itself.
Recommended action: Attempt to process the transaction again. If repeated attempts are also unsuccessful, contact the PSP for assistance.
Failure code: 91
Response text: No Reply
Failure code definition: Issuer or Switch is Inoperative
Explanation: A temporary error caused the authorization to fail. The issuer or switch is inoperative error typically indicates that the card issuer could not be contacted, or did not respond with an approval in time.
Recommended action: Attempt to process the transaction again. If repeated attempts are also unsuccessful, contact the PSP for assistance.
Failure code: 93
Response text: Decline
Failure code definition: Transaction Cannot be Completed
Explanation: An account violation has resulted in this transaction authorization being denied by the issuing bank.
Recommended action: Ask the card holder to contact the issuing bank to determine the reason for the decline. Once the problem has been resolved and the issuing bank has confirmed that they will authorize the transaction, submit again.
If the problem cannot be solved, request another card from the customer, or use an alternative payment method.
Failure code: 96
Response text: System Error
Failure code definition: System Malfunction
Explanation: A temporary error has caused the authorization to fail.
Credit Card Wizard 140
Recommended action: Attempt to process the transaction again. If repeated attempts are also unsuccessful, contact the PSP for assistance.
Credit Card Wizard 1400
Failure code: CV
Response text: Failure CV
Failure code definition: Card Type Verification Error
Credit Card Wizard 145
Explanation: The CID or CVV2 provided does not match the one associated with the card number. This failure code may also indicate an error in the merchant account configuration.
Recommended action: Request the corrected code from the customer. The transaction can be re-attempted without the CID or CVV2, but merchants should be aware that an invalid code may signal fraudulent card usage. If the transaction is attempted without the code and does not go through, contact the PSP for assistance, and to determine whether it is an issue of account configuration.
Credit Card Wizard 140
Failure code: R0 or R1
Response text: Stop Recurring
Failure code definition: Stop Recurring Transaction
Explanation: The card holder has requested a cancelation of a recurring payment. The card holder would have made this request with the card issuer, rather than the merchant.
Recommended action: In order to prevent chargebacks, cancel the recurring schedule immediately. Merchants should contact the customer to determine how they would like to proceed. If they wish to continue the payment schedule with the existing card, they must contact the card issuer to remove the ‘stop’ order against the merchant charges. If they wish to change the payment method or update the card details, update their account and simply obtain new authorization to resume the schedule.
With this guide to the most common credit card failure codes, merchants can now evaluate and respond to declined transactions swiftly. Typically, contacting the customer or reviewing the card details will lead to a resolution. This means recovering lost revenue from declined transactions, and ensuring future transactions can be processed without incident.
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