What action should be taken if a card is re-swiped after being declined?

If a card is re-swiped after being declined, it may lead to a chargeback, especially if the circumstances surrounding the decline are not adequately addressed. When a card is declined, it often indicates an issue such as insufficient funds, a problem with the card, or potential fraud risk. Re-swiping does not necessarily resolve these underlying issues and may cause the payment processor or bank to flag the transaction as suspicious.

If a merchant allows a re-swipe without resolving the specific reason for the initial decline, it can lead to complications such as the cardholder disputing the transaction, resulting in a chargeback. Chargebacks occur when customers contest a transaction, often leading to financial penalties for the merchant, additional processing fees, and potential damage to their reputation with payment processors. Therefore, it's crucial to recognize the implications of re-processing declined transactions to maintain transaction integrity and avoid financial repercussions.