Home / Issuing / Manage Credit

Simulate Application Denial

Adverse Action Reasons

When a credit card application is denied, regulations require you to provide the customer with Adverse Action (AA) reason(s) for the denial within 30 days. This is a requirement to promote credit availability to all creditworthy applicants and ensure the credit decision is based on creditworthiness.

Adverse Action (AA) reasons are assigned and associated with each rule within your Product's credit policy and are populated based on the rules which failed in the credit decision. For example, if your credit policy has a rule that the Annual Business Revenue provided in the application must be greater than a specified amount, the application may be DENIED with the AA reason of "Income insufficient for the amount of credit requested."

If you use Collaborative Application Decisioning, you must provide the applicable Adverse Action Reasons in a DENIED response, based on your underwriting decision and credit policy's rules.

For a complete Adverse Action Reason Codes list, see the API Reference.

Simulate Credit Adverse Action Decline

Opening an Application on a Credit Card Product in the Test Environment allows you to test various Adverse Action reasons on a DENIED response. Testing Adverse Action reasons consists of the following steps:

  1. Create a Business Account Holder in your Test Environment.
  2. Provide specified values on the legalBusinessName and/or annualRevenue inputs.
  3. Create a Card Product application for the Business Account Holder. The annualRevenue and legalBusinessNamevalues will be used when you create an application.

In the Live environment, a DENIED Application may have 1 or many associated Adverse Action reasons, which must be provided to the customer.

The following table contains examples of specified values and Adverse Action responses.

FieldValueAdverse Action Response
annualRevenue$1.00 INSUFFICIENT_INCOME Income insufficient for the amount of credit requested
annualRevenue$2.00DELINQUENT_CREDIT_OBLIGATIONS Delinquent past or present credit obligations
legalBusinessNameDECLINEUNABLE_TO_VERIFY_IDENTITY Unable to verify identity

Use the following query to create a Card Product application for a Business Account Holder in your Test Environment and simulate an Adverse Action decline:

Provide Feedback

Was this content helpful?