What Does A ‘Gateway Rejected’ Transaction Mean?

According to PriceWaterhouseCoopers, online fraud was a $42 billion problem in 2020.

That’s why banks, banking systems and payment services like PayPal and Braintree (the 2 providers used by WPX) are constantly tightening their anti-fraud rules to fight this growing, massive industry.

This situation is relevant for you as those security rules could inconvenience your card transaction with WPX when you get something called a ‘Gateway Rejected’ issue that prevents payment for hosting with us.

Why Exactly Would Your Transaction Be Rejected?

When you use a credit card to pay for hosting with WPX, the automated billing management system that we use sends a payment request to your bank, including specific fraud-preventing information that your bank should observe.

For example, your bank should ONLY approve a transaction IF the address and postal code that you have filled in during payment match the bank records for this card.

Would you want your bank to approve a transaction if that information was wrong?

When your bank approves the credit card transaction, their approval response back to us includes AVS (Address Verification System) and CVV (Card Verification Value) response codes.

However, it’s FAR from a perfect system – even in 2021 – and we know from 7+ years in the hosting business that:

– banks do sometimes approve transactions when they should not have, and,

– banks do sometimes disregard our anti-fraud rules and approve incorrect transactions, despite some records not matching

When this happens, our billing system AUTOMATICALLY and IMMEDIATELY rejects the transaction – ‘Gateway Rejected’- and sends a void request instantly to your bank.

This AUTOMATIC voiding of the transaction means that WPX has NOT been paid for this transaction and can NEVER be paid for this particular transaction as it has been irreversibly voided.

HOWEVER, the funds will show as taken from your bank account BUT the WPX invoice remains unpaid.

This is VERY frustrating for you and for us. 

If you try to repeat the process with the same incorrect information, this will only result in even more funds being taken from your bank account and the WPX invoice remaining unpaid.

IMPORTANT: Even rejected transactions result in the funds being taken from your bank account, at least temporarily and the time it takes to be returned to your account vary from bank to bank.

If you try to process a transaction multiple times with incorrect card/address information for the same invoice, it does NOT mean that WPX keeps trying to re-charge you for the same invoice and WPX never gets ANY payment from your bank for voided transactions.

Remember, the voiding of rejected transactions is AUTOMATIC and not manual.

This is how the information is reported back to us (NOTE: K Media Tech is the parent company of WPX):

Main Reasons For Glitches In This Process That Block Your Transaction?

– Some banks do NOT recognize void requests immediately. That is why they hold the funds for Gateway Rejected transactions for about 7 days – the funds WILL appear to have been taken from your bank account during this period. 

It is your bank holding that money from your bank account during this period and NOT WPX – we cannot ever get paid for voided transactions!

WPX does NOT hold the funds, REGARDLESS of what your bank says and the banking industry isn’t exactly famous for its honesty.

 – The transaction’s status is Pending and not Completed in your bank account.

 – The funds ARE in your bank account but are UNAVAILABLE for you to use. They will be released by your bank in 7 to 10 days’ time, it varies from bank to bank.

– We have NOT and will NOT receive the funds from your bank as we have AUTOMATICALLY rejected and voided the transaction immediately, based on incorrect information entered usually (this is an anti-fraud measure). 

– If you check the address details with your bank and they confirm them – we have no explanation why the bank’s response was stating the opposite. 

NOTE: We do NOT have and have NEVER had access to any data registered with banks. 

What To Do Instead?

If you do NOT have enough funds in your bank account to cover this invoice, please do NOT try to make any more payments by card as you might go into Overdraft and incur much bigger charges from your bank.

If you CAN afford to pay the proforma invoice with your card, you can then use PayPal as a card payment processor with no extra charge. 

To use this option, you do NOT need a PayPal account.    

1. Go to this page inside your WPX account (login required):

https://wpx.net/clientarea/invoices/

Click on the relevant unpaid invoice, then,

2. Choose Paypal >> Checkout >> Pay with your card    

and then fill in the required card information there.

Generally speaking, PayPal has more sophisticated tools to prevent fraud and this way is more likely to work and guarantee your service.

IMPORTANT: An unpaid invoice at WPX will not AUTOMATICALLY disable your WPX hosting account until 7 days AFTER the due date of the unpaid invoice so there is a window of time for the Gateway Rejected problem to be rectified.