Declined by Sezzle

Top 8 Reasons Why Sezzle Declines Payments

The future of payments – Buy Now, Pay Later is here to stay. While there’s dozens of major companies leading the way, Sezzle is a major standout that no ecommerce business can afford to ignore.

Sezzle is a fin-tech company that helps you gain financial freedom with its buy now pay later services. The plan is simple, buy products/services using Sezzle at checkout, then pay later in four interest-free installments. With over a million active users, they’re well worth looking into as a payment solution for any online business or buyer.

However, no service comes without conditions. With Sezzle, this may be a case of declined payments. Since Sezzle’s approval process is fully automated, there is a list of factors that may result in declined payments.

Stuck and frustrated after getting declined by Sezzle multiple times? Read on to find the problem, solve it, and keep your payments processes running smoothly.

8 Reasons Why Sezzle Declined You

1.    Funding Limit

If your order is above the spending limit approved to you, then payment will get declined by Sezzle.

The solution?

Reduce the total amount of your order, or enroll with Sezzle Up and boost your approved limit.

Sezzle Up is an additional service through Sezzle that allows you to do the following:

  • The increased approved payment limit
  • Report your payment history to credit bureaus to improve your credit scores
  • Gain access to shop at exclusive in-app merchants using Sezzle

Sezzle Up is currently only available for U.S. shoppers with at least one order that’s been paid off.

2.    Lack of Funds

Sezzle requires the user to have at least the down payment amount at the time of order or the payment will be declined.

Adding the minimum funds for the down payment should help you resume payment.

3.    Open Orders and Outstanding Amounts

Having open order or an outstanding amount can result in the payment being declined. This situation can be easily resolved at your end by clearing orders, paying off amounts, or closing the account.

Here’s how you can pay off outstanding installments on Sezzle early on.

You can resume shopping with Sezzle once the outstanding accounts and amounts are cleared.

4.    Payment Methods

Sezzle may decline your payments if it can’t process your card during payment authentication.

5.    Order Amount

Sometimes, Sezzle may decline payments for order amounts/values that are above the maximum limit. Check to see what your payment limit may be. If you’ve hit the limit, try to reduce the order amount and make payment once again.

If you still can’t resolve the declined payment issue, try splitting the total value of the order into installments. Then make a payment.

6.    Number of Failed Payments

A few failed payments can result in more. Only resolving the cause will help you make future payments.

Another option is to check payment methods and funds in the accounts.

7.    Account Details

Incorrect or incomplete account information is a common reason why payments get declined. The automated process streamlines verification so you might need to make changes yourself and ensure your details are accurate. That should enable you to get verified for payments.

8.    Declined by Bank

In instances where you’re using a virtual card from Sezzle, your bank may decline your payments.

There is no clear reason why a bank may decline these payments, but the issue is easily resolved after contacting the bank.

Are you still facing issues with declined payments after trying all the above-mentioned methods?

Don’t give up yet!

We’ve listed a few alternate options for you below that will allow you to make easy payments with a Buy Now, Pay Later option.

Alternatives for Sezzle


Klarna is another Buy Now, Pay Later service that allows both in-store and online shopping.

It has a similar four-part repayment plan with one payment due every two weeks.

Klarna doesn’t charge you any interest for the first four payments if you pay them on time. However, for every late fee, Klarna charges users an additional fee of not more than 25% of their order’s value.

Like Sezzle, your payment history isn’t reported to any credit bureaus. So, there’s no impact of your activity on your credit score.


Want the freedom to pay when you want?

With Affirm, you get to choose your payment schedule from 3, 6, and 9-month plans. The 3-month plan comes without interest while the 6 and 9-month plans don’t.

There is an APR rate between 0-30% based on how much credit the user has collected.

Affirm also reports your payments history, Affirm records, and credit to credit bureaus. So, using the Affirm payment service can impact your credit score.


Afterpay is one service where paying on time gets you eligible for higher limit spending.

The payments are divided into 4 parts over the term of eight weeks with no interest charged for on time payments.

Similar to Klarna, Afterpay also charges late payments with a fee that is not more than 25% of the order value.


Previously Quadpay, Zip is a Buy Now, Pay Later service that can be used in-store or online. Zip offers two products: Zip Pay and Zip Money.

We previously compared sezzle vs zip pay and found pros and cons of both. Zip Pay can be used by people looking to simplify everyday online shopping and benefit from zero-interest payments. While Zip Money is for users who need to make bigger payments.

With Zip Pay, users can get a credit limit between $350-2,000. Whereas, Zip Money gives users credit limits between $1,000-$5,000 or $1,000-$50,000.

Check out how Zip repayments work on their website.

Final Thoughts

Using a Buy Now, Pay Later payment app is the way of the modern shopping enthusiast. With affordable installments and zero-interest repayment plans, there’s more to benefit the user.

However, a declined payment can spoil the experience.

We hope our list of reasons for declined payments helps you find the solution to your problem.

Happy shopping!

Leave a Comment

Your email address will not be published. Required fields are marked *