Credit Card Processing Outages: Causes, Impacts, and Solutions

Credit cards are essential for business transactions, but even the most reliable systems can experience processing outages. For businesses, these disruptions not only hinder sales but also impact customer satisfaction. By understanding the causes of outages and effective strategies to handle them, merchants can minimize their impact and maintain a seamless experience for customers.

What is a Credit Card Processing Outage?

A credit card processing outage occurs when the technology systems responsible for handling credit card payments fail. During an outage, transactions cannot be completed, and merchants are unable to accept card payments. These outages can stem from multiple sources, such as connectivity issues, power disruptions, hardware malfunctions, or software glitches.

Common Causes of Credit Card Processing Outages

1. Internet Connectivity Issues
   Since most modern payment systems rely on internet connections, disruptions here are a common cause of outages. Anything from weak WiFi signals to larger network issues can stop a payment from processing. These issues may be quickly resolved by rebooting the router, but in cases of regional outages, they could last longer.

   Learn more about securing a reliable internet connection for payment processing.

2. Power Outages
   Widespread power outages can bring an entire region’s transactions to a halt. These outages may result from extreme weather, maintenance issues, or other grid problems. Since no power means no access to the processing systems, businesses cannot accept card payments during these times.

   For further reading, the U.S. Department of Energy’s guide offers insight into power outages and grid stability.

3. Hardware Malfunctions
   Credit card processing hardware—such as POS terminals, card readers, and printers—can experience failures that prevent payment processing. Hardware issues may arise due to outdated equipment, physical damage, or software compatibility problems.

   Visit our Hardware Guides to learn more about choosing reliable, updated equipment.

4. Software Glitches and Processor Outages
   Sometimes, the issue may originate from the software itself. Payment processors may experience internal service interruptions or updates that temporarily hinder the system. These types of issues can be outside the control of the business and may require coordination with the payment processor for resolution.

   Keep up-to-date on software with PCI Compliance standards, which are vital for securing card data and avoiding disruptions.

What to Do During a Credit Card Processing Outage

1. Identify the Cause of the Outage
   Start by assessing whether the outage is due to power, internet, hardware, or software. This can involve checking routers, cables, or simply contacting your payment processor to understand if there’s a widespread issue affecting their services.

2. Communicate with Customers and Staff
   Let customers know about the situation and offer alternative payment methods. Staff should be briefed on the situation and instructed on how to assist customers effectively, keeping the experience as smooth as possible.

3. Offer Alternative Payment Options
   During an outage, businesses can pivot to other methods such as cash, checks, or digital wallets like Apple Pay, which may still function through mobile data if the internet is down.  For brick-and-mortar stores, card imprinters can provide a backup solution, allowing merchants to manually process card information for input once systems are back online.  For more information on accepting all payment types, see our guide for merchants. 

4. Troubleshoot Hardware and Software
   For hardware issues, a simple reboot may resolve the problem. If the issue is persistent, contact the payment processor for support, as they may need to provide a replacement device or further troubleshooting.

5. Monitor Outage Alerts
   Utilize tools like Downdetector to get real-time updates on outages affecting specific providers, card networks, or ISPs. This allows merchants to determine if the issue is widespread and may take time to resolve.

Impacts of Credit Card Processing Outages

Credit card outages can negatively affect cash flow and customer satisfaction, particularly if customers cannot pay as they intended. This can reduce revenue, especially for businesses highly reliant on card transactions. Persistent outages or lack of effective communication during disruptions may also hurt a business’s reputation and drive customers elsewhere. In addition, manual processing methods used during outages can pose security risks, emphasizing the need for robust PCI compliance and data protection strategies.

Prevention and Preparation

For businesses looking to mitigate the impact of credit card processing outages, partnering with a reliable payment processor like SignaPay can make a substantial difference. Reliable processors offer solutions for both preventative measures and real-time support during outages. They ensure up-to-date hardware, software security, and seamless processing experiences, allowing merchants to handle disruptions efficiently.

Conclusion

While credit card processing outages can be disruptive, they’re manageable with preparation, reliable partners, and clear protocols. By understanding common causes, establishing a response plan, and communicating effectively with customers and staff, businesses can minimize the impact of these outages and ensure that operations remain as smooth as possible.