If you’re running a business and rely on EFTPOS to handle your customer transactions, you’ve probably seen a few error codes pop up now and then. Most of the time, they’re simple fixes – maybe a card needs to be inserted again, or the connection was momentarily lost. But occasionally, you’ll see a message that causes a bit more confusion, like “ICC Declined.”
So, what does ICC declined mean? And more importantly, what should you do when it appears on your EFTPOS terminal?
Our EFTPOS specialists have unpacked what this error means, why it shows up, and how to respond when it does to help you feel much more confident troubleshooting this issue and ensuring your EFTPOS system runs smoothly.
To understand what ICC declined means, it helps to know what ICC stands for.
ICC is short for Integrated Circuit Card, which is the technical term for what most of us call a chip card. These are the credit or debit cards embedded with a tiny microchip. When you insert a card into your EFTPOS machine (rather than swipe or tap), you’re using the chip or ICC to process the transaction.
Chip technology was introduced to make card transactions more secure. It uses encrypted data and dynamic authentication, which helps to reduce fraud. Unlike magnetic stripe cards, which store static information that’s easy to clone, chip cards generate a unique transaction code every time they’re used, which makes it a lot harder for fraudsters to pull off unauthorised purchases.
But while chip cards are great for security, they can be a little pickier during the transaction process, and that’s where ICC declined comes in.
The message “ICC Declined” on an EFTPOS terminal simply means that the chip in the customer’s card has declined the transaction. It’s important to note: this isn’t a terminal error or a connectivity problem, it’s the card itself that’s rejecting the request, specifically, the chip logic inside the card.
In other words, the EFTPOS terminal has communicated with the card, the card reviewed the transaction request, and the card said no.
That raises the next question: why?
There are several reasons a card might decline a transaction at the ICC level. Let’s look at the most common ones:
Sometimes, the card’s chip is damaged, faulty, or simply not reading properly. This can happen if the chip is scratched, dirty, or worn out from frequent use.
The card issuer (usually the customer’s bank) programs rules into the chip to determine how it should respond to different types of transactions. These rules might decline a transaction if:
In this case, the chip is just doing what it was told to do by the bank.
Occasionally, you’ll get an ICC declined message due to a communication glitch between the terminal and the card. A momentary hiccup in the transaction process can cause the card to reject the request even if it would otherwise go through.
Some chip cards can approve low-value transactions offline (without checking with the bank) up to a certain limit. If the customer has reached that limit, the chip may decline any new transactions until the card can connect online for verification.
If you’re a business owner or staff member at the till, seeing ICC declined can feel frustrating, especially when there’s a queue. Here’s how to handle it calmly and professionally:
Sometimes, a simple re-insert of the card can solve the issue. Maybe it wasn’t seated properly, or there was a brief read error.
If the error appears again, politely ask the customer if they’d like to try another method:
It’s good practice to calmly explain that the card declined the transaction, not the EFTPOS terminal.
You could say something like:
“It looks like your card’s chip has declined this transaction. Sometimes it’s due to a setting or limit on the card. Would you like to try a different card or payment method?”
If the issue keeps happening, it’s a good idea for the customer to check in with their card issuer. The bank can investigate if the chip has a fault or if there’s something unusual triggering the decline.
Not quite. When a card is declined by the bank, you’ll usually see messages like:
These indicate that the bank has rejected the transaction after it was sent to them for approval.
In contrast, ICC declined means the chip itself made the call before the transaction even reached the bank. It’s like a built-in firewall within the card saying, “This doesn’t meet the conditions I’ve been told to follow.”
That’s why even if a card is perfectly valid, it can still result in an ICC declined if the chip logic kicks in.
While you can’t control whether a customer’s card gets declined, you can take steps to minimise disruption to your business.
Here are a few tips:
Dust and debris can interfere with chip readers. Give terminals a regular clean and check for signs of wear.
The more your team understands what different error codes mean, the better they can handle customer interactions and maintain a professional, helpful tone.
Many ICC declined issues can be avoided with tap-and-go or digital wallets. These methods are fast, secure, and less prone to chip errors.
Having the right EFTPOS partner means you’re never left in the dark when something goes wrong. Look for a provider who offers fast support, reliable equipment, and insight into how to keep things running smoothly.
If you’re tired of confusing error messages, slow response times, or outdated tech, it’s time to switch to an EFTPOS provider that understands the needs of Kiwi businesses.
At EFTPOS Now, our EFTPOS specialists offer modern, secure, and easy-to-use terminals with expert support to back you every step of the way. Whether you’re a café, a retailer, or a tradie on the go, we’ve got solutions tailored to help you do business.
Get in touch with us today to see how we can help you take payments with confidence.
