Payment Processing Outages: Causes, Prevention, and a Merchant Response Playbook

Even systems that go down rarely, go down sometimes. Between September 2021 and March 2024, card payment services in Australia had 99% uptime. This sounds good, but within that missing 1%, customers and businesses experienced 102 significant outages, totaling 321 hours of downtime. And in the UK, nine major banks recorded more than 33 days of unexpected tech failures over two years.

Your business can’t control upstream systems, but you can control how prepared you are. 

This article covers common causes of payment processing outages and their impact on payments. Plus, learn the best alternative payment options to use during an outage and what companies can do today to reduce risk and build customer trust.

What is a payment processing outage?

A payment processing outage is any disruption that prevents customers from successfully completing transactions. It can happen online or in-store and often catches merchants off guard, especially when the root cause isn’t immediately obvious. 

These disruptions can be full outages in which payments can’t be processed at all, or partial failures that show up as delays, higher decline rates, or otherwise broken checkout experiences. If the goal is to reduce outages and recover faster, you need to track payment processing metrics like authorization rates, decline rates, and payment latency, as even partial outages will drive away customers and revenue.

There are several types of outages, and they often get grouped under the same umbrella. Here’s how to tell them apart:

• Processor outages: These happen when the payment processor is down or unstable.
• Gateway outages: Payment gateways connect your store to the processor. If they fail, transactions stop even if the processor works.
• Card network disruptions: Issues with Visa, Mastercard, or Amex can cause failures across many merchants.
• Platform checkout issues: Errors may come from issues with your ecommerce platform or point-of-sale (POS) system.
• Local issues: Wi-Fi drops, device failures, or browser quirks can look like bigger outages, even if they turn out to be isolated.

For ecommerce stores and retailers, it’s also important to understand the difference between online and in-store outages. 

Online, a processing issue might look like a sudden increase in failed credit card payments, a noticeable drop in conversions, or a spike in abandoned carts, especially after customers input their payment details. Pages may take longer to load, and payment forms might time out before the transaction is completed. 

In-store, the signs are more obvious. Payment terminals may freeze or display “cannot connect” messages, and tap, chip, or swipe transactions might fail across the board. Authorizations can slow to a crawl or stop working altogether if the store’s network connection is interrupted.

Tip: With in-store purchases, it’s hard to miss an outage; an employee tries to ring up a customer, and it doesn’t work. With online purchases, it can be harder to notice—this is why it’s important to set alerts for common indicators like a spike in abandoned carts. Shopify apps like Checkout Pulse can ping you directly on Slack if there are any disruptions or anomalies in your checkout flow.

The full transaction path: Where outages happen

When a customer checks out, the payment request passes through multiple systems, each of which is a potential failure point. Merchants often point immediately to the ecommerce payment processor when things break—but the issue might be much closer to home.

Here’s what that transaction path typically looks like:

Customer → Device/Browser → Internet Connection → Payment Gateway → Payment Processor → Card Network → Issuing Bank

There are three potential failure points for a transaction before it even reaches the gateway, and at those stages a weak Wi-Fi signal, a browser compatibility issue, or even a slow device can block a transaction. On the other end, even if your systems are working perfectly, the card network or issuer might be experiencing delays.

Understanding your payments stack is what separates guesswork from fast problem-solving. The faster you pinpoint where the issue lives, the faster you can get back to selling.

Common causes of payment outages

Payment failures can feel random in the moment, but most fall into one of three categories: local, provider, or network/issuer-level issues. This framing helps merchants quickly triage what's happening and act without guessing.

Before diving into specific scenarios, here’s a quick-reference table to help identify where the problem lives:

Payment Outage Triage: Local vs. Provider vs. Network

Internet connectivity issues

Connectivity failures are among the most common causes of payment disruption. They appear differently depending on where the transaction is taking place.

In-store, a dropped internet connection can instantly take card readers and POS terminals offline. You might see “cannot connect” signals, frozen terminals, or timeouts when trying to authorize payment. This often stems from a local Wi-Fi outage, a modem reset, or a power issue affecting the router.

Online, the signs are more subtle. Customers might report long loading times or checkout errors. You might see an increase in failed transactions, abandoned carts, or slow payment authorizations. In some cases, browser-level issues can also prevent payment gateways from loading properly.

Here’s how to troubleshoot internet connectivity issues:

• Restart your router or modem
• Switch networks
• Run a speed test or open another website
• Check with your ISP

Power outages

While it’s easy to assume payment failures are software-based, power loss is a surprisingly common cause. A brief outage or even a flicker can knock terminals offline or disrupt synced POS systems.

When power goes out, it can also disable your modem, router, card reader, receipt printer, or any device connected to your POS network. And even after the power returns, these systems don’t always reboot in the right order.

Here’s what to do in the event of a power outage (once the power returns):

• Restart the device or POS app.
• Reconnect POS devices in the correct sequence.
• Check terminals for power issues.
• Use built-in diagnostics.

To avoid power-based disruptions entirely, consider installing an uninterruptible power supply (UPS) for your router, modem, and POS hub. This preventative step gives you several minutes of backup power to keep critical systems running or shut them down gracefully without data loss. For mobile readers, ensure devices are charged and have access to portable battery packs.

Hardware malfunctions

Even when your internet and power are working, a single failing device can bring checkout to a halt. In-store, this could be a frozen terminal, an unresponsive card reader, or a mobile POS with a dead battery. Online, it might be a browser or device issue that blocks a payment input from loading or functioning properly.

These issues often look like partial outages. For example, transactions may start but not finish, or specific payment methods might stop working while others continue to work. The key is to isolate the malfunctioning component and swap or reset it quickly.

Here’s a quick hardware checklist:

• Check cables and connections.
• Test processes with a spare reader or device.
• Restart the device or POS app.
• Check battery levels.
• Inspect printers.
• Check for firmware or software updates. After updating, you will likely need to reboot.

Note: Remember to keep a portable reader or backup tablet, so you can keep transactions flowing while you troubleshoot.

Software glitches and processor/gateway outages

Some payment disruptions aren’t caused by power, internet, or hardware. Instead, they originate from the software or services that connect everything behind the scenes. These outages can affect both online and in-store credit card payments, and are often harder for merchants to diagnose in real time.

There are two main types: 

• Scheduled maintenance: This usually happens during off-hours and is announced in advance by your payment processor, ecommerce platform, or gateway provider. During this time, some services may be unavailable. Keep an eye out for scheduled maintenance notifications, and when you receive one, add the maintenance to your calendar so you don’t forget. 
• Unplanned incidents: These are real-time failures that often take merchants by surprise. These could be caused by software bugs, ransomware attacks, traffic spikes, expired certificates, or third-party service disruptions.

Also, many outages start with services merchants don’t directly control. Here are some of the third-party dependencies that can impact payments:

• Gateways: The connection between your store and the processor. If it fails, credit card payments can’t be transmitted, even if the processor is up.
• Fraud tools: Overly strict filters or misconfigurations can block legitimate transactions. If this happens, adjust your settings and troubleshoot; if necessary, you can switch to a fraud tool with less friction.
• DNS/CDN providers: If these services fail, your checkout may not load.
• Hosting or infrastructure platforms: Ecommerce downtime at the hosting layer can disrupt checkout and overall payment stability.

It’s smart to regularly monitor your Shopify status page and your payment provider’s status page. These sources offer real-time visibility into planned maintenance, current incidents, and historical uptime.

What to do during a payment processing outage

When payment processing goes down, the clock starts ticking. Every minute represents potential lost revenue, and potential . This section walks you through the steps of what to do in the first few minutes, with a practical response playbook you can run right away.

Determine the cause

Before you panic or start guessing, take a deep breath and take five minutes to triage the issue. This quick diagnostic flow can help you identify the source of the problem so you can either fix it fast or switch to a backup plan.

Step-by-step triage (under 5 minutes):

• Check power and internet: Make sure your POS or checkout systems are powered on. Test your connection by visiting a website or using another device.
• Try another device or browser: Switch to an incognito tab, different browser, or device. In-store? Use a backup reader or tablet.
• Visit the Shopify Status Page: Look for any platform-wide issues.
• Check your payment gateway’s status: Most providers report real-time outages.
• Scan outage trackers (e.g., Downdetector): While not officially affiliated with the companies it reports on, this tool can be helpful for spotting issues with a wide number of online services.
• Watch for card-specific failures: If Visa fails but Amex or wallets work, the issue may lie with the network or issuer.

Monitor outage updates

Once you've identified that the issue isn’t local, stay informed. Your best bet is to rely on official sources that provide timely updates.

Start with the Shopify Status Page. It shows real-time platform health across checkout, POS, credit card payments, and more. If there’s a known issue affecting merchants broadly, it’ll show up here first.

Next, check the status page of your payment provider or gateway. Most major services (e.g., Stripe, Authorize.net, PayPal) publish incident reports, estimated resolution times, and details about ongoing maintenance.

If you rely on any fraud tools, DNS/CDN providers, or third-party checkout apps, check their status pages too, especially if they’ve caused issues in the past.

Why this matters: During an outage, misinformation can spread quickly in merchant forums, social groups, or internal Slack threads. By anchoring your response to official status pages, you avoid rumor loops and keep your team and customers aligned with the facts.

Consider bookmarking your key provider status pages now, so you don’t waste time hunting them down when things go quiet. You may also consider posting a link on one of your public forums, so customers can really see the source of the issue as well as any updates.

Accept alternative payment methods

If your primary payment method is down, offering backup solutions—both online and in-store—can help you continue making sales. Having a contingency plan helps keep operations smooth and customers’ spirits high.

These methods often use different processing paths or authorization flows, so they can work even when credit card payments fail. If you use Shopify Payments, you can quickly adjust which methods are visible or promoted in your checkout settings.

Alternative online payment methods include:

• PayPal
• Shop Pay (if not affected)
• Buy now, pay later (BNPL) solutions
• Mobile wallets like Apple Pay or Google Pay

In-store payment methods include:

• Gift cards
• Cash or manual card entry
• Tap-to-pay with phones or wearables
• Stored invoices or deferred payment options

Consider manual processing (only if compliant)

In some cases, your payment provider or POS system may support manual or offline processing—but these should be used only if explicitly supported and fully compliant with PCI standards. 

For example, some POS setups include a store-and-forward mode that allows transactions to be temporarily captured offline and submitted once the connection is restored. Others may allow offline authorization fallback for specific payment types. These features are designed to maintain service during brief disruptions, but only when used in accordance with your provider’s guidelines.

What not to do: Never write down card numbers, photograph customer payment information, or attempt to process cards later without proper authorization. These actions violate compliance standards.

Remember, even under the potentially stressful conditions of an outage, PCI compliance and other security measures are a priority, not an afterthought. The amount of additional revenue you might gain from forcing a few sales through using an unsecured process is not worth the reputational damage you’d sustain from a customer’s information being stolen.

Communication is key

During a payment outage, clear communication helps with customer satisfaction, even when you don’t have all the answers yet. Let customers know what’s happening. Silence or vague messaging leads to frustration, abandoned purchases, and potential reputational damage.

Here’s a ready-to-use customer messaging kit you can adapt based on the communication channel:

Onsite banner copy (1–2 lines): “We’re currently experiencing a temporary issue with some payment methods. Alternative options are still available. Thank you for your patience!” You can adjust the copy to specify which methods are down and which alternatives are available.

Checkout error message fallback: “Something went wrong while processing your payment. Please try a different method or come back shortly. We’re working on it.” If you are aware of a specific issue on your end, you can add that information to the message.

Social media post template: “We’re experiencing a temporary issue with some payment methods at checkout. The team is on it, and other options (like [PayPal and Shop Pay]) are still available. We’ll update here as soon as it’s resolved. Thanks for bearing with us.” 

Customer support macro (for DMs or email): “Hi [Customer Name], thanks for reaching out! We're currently experiencing a payment issue that may be affecting some transactions. Our team is actively monitoring the situation. In the meantime, you can try [alternative payment method] or complete your order once service is restored. We’re really sorry for the disruption. Please let us know if we can hold your order or help in another way.”

Make sure your support team and store staff are aligned on the messaging and update these templates in real time if the outage persists or new options become available.

Double-up on customer service

When credit card payments fail, your service team becomes the front line of trust. A proactive approach can turn a frustrating experience into one that still feels supportive and reliable. 

Even if a customer can’t check out right now, there are ways to keep the relationship (and the sale) intact. Here are some ideas for helping customers during an outage.

Tactics to preserve trust during an outage:

• Hold the cart: Let customers know their cart will be saved. For logged-in users, save it automatically or send a recovery email with a checkout link.
• Offer “pay by invoice”: Allow high-intent buyers, especially returning customers, to submit the order now and pay later once systems are back online.
• Send a quick apology and update: A message like "We're working on it and expect payments to be back soon" shows you're aware and taking action. Remember, even a little communication is better than a frustrating silence.

Credit card alternatives for in-store and online payments

Of course, building resilience into your payment stack helps during outages. But it also improves checkout performance even when everything’s working. Offering diverse payment methods ensures your customers can pay even if one service fails, and helps reduce friction across both online and in-person channels. 

Let’s now look at some different payment gateways and examples of how they have helped some ecommerce merchants win.

Provide multiple payment gateways online

If your primary gateway goes down, having a secondary gateway (or alternative checkout methods like Shop Pay or PayPal) can keep transactions flowing.

In short, if Gateway A fails, then Gateway B can often catch part of the demand. Even if not all transactions are rerouted, this redundancy can help protect revenue and improve the customer experience in real time. More importantly, these options often lift conversion rates even when everything is working fine.

Shopify merchants can activate multiple accelerated checkout methods without replatforming or adding complexity to the front end. This worked well for Shopify merchant Everlane.

Within 30 days of enabling Shop Pay, 15% of Everlane’s US transactions were being processed through the platform. Shop Pay delivered a noticeable decrease in credit card inputs, simplified the flow for unactivated customers, and allowed Everlane to boost conversions and free up engineering time.

According to internal Shopify data, Shop Pay has reached conversion rates of up to 70%, outperforming other express checkout options by at least 10%.

Everlane’s experience shows that multiple gateways can improve operations and boost performance simultaneously.

Another example comes from World of Books, which replatformed to Shopify to improve customer experience and technical flexibility. By adopting Shopify Payments and Shop Pay, they were able to:

• Increase conversions by 10% across regions
• Improve front-end performance
  Integrate tools and payment options faster, without custom engineering work

For World of Books, adding these payment methods helped modernize their stack, serve global customers with localized payment needs, and free up internal teams to focus on product and experience.

Prevent and prepare for payment processing outages

No matter how reliable your setup is today, the best way to reduce future revenue loss is to treat payment resilience as a repeatable habit. Just like you’d test fire drills or software backups, your team should regularly review and strengthen your payment systems across infrastructure, people, and processes.

Here’s how to build that rhythm into your business.

1. Run a quarterly payments resilience audit

Every quarter, dedicate a period of 15–30 minutes to ask:

• Do we have more than one active payment method online and in-store?
• Do we know which team member or vendor to call if payments stop working?
• Are backup devices, hotspots, or power banks available and tested?
• Is our customer support team prepared with macros and messaging templates?

This audit serves as a pulse check of your system’s ability to recover quickly, whether the outage is local or provider-based. Below is a checklist you can use during each audit:

Quarterly audit checklist

• Do we have at least one backup payment method enabled for both online and in-store checkouts?
• Is there a known escalation path (internal or vendor) if something fails mid-transaction?
• Are backup devices—like card readers, tablets, or mobile hotspots—available and tested?
• Do we have an uninterruptible power supply (UPS) for key in-store hardware?
• Is the customer support team trained on outage messaging and equipped with updated macros?
• Do we have bookmarked status pages for Shopify, gateways, and other payment providers?
• Have we documented a post-incident playbook or reviewed past outage responses?

Bonus habit: Run a 15-minute tabletop drill

Once a quarter, walk through a hypothetical outage scenario with your team. Pick a starting point (e.g., “Shop Pay suddenly stops working”), and ask: Who gets notified? What do we say to customers? How do we reroute transactions? These drills take little time but surface any big gaps you need to fix, and help your team react faster to real incidents.

2. Plan for redundancy across three layers

Payment outages don’t always come from your provider; they can stem from local network issues, broken hardware, or single points of failure in your payment stack. 

So, build redundancy across these three key areas:

• Internet: A reliable connection is essential for online and in-store sales. Keep a mobile hotspot or backup Wi-Fi at each location, especially with cloud-based POS.
• Hardware: Devices fail. Have a charged, preconfigured backup reader, tablet, or phone ready to swap in—or one (or more) of each if you use all of those devices in your store.
• Payments stack: Don’t rely on one provider. Offer multiple gateways and options like Shop Pay, PayPal, or wallets to avoid a full checkout shutdown.

3. Set up monitoring and alerting

Bookmark and regularly check the Shopify Status Page and your payment gateway’s status page. These tools offer real-time visibility into issues and upcoming maintenance so you can take action early. You can also set up status alerts via Slack, email, or SMS using free third-party tools or provider integrations.

4. Conduct a post-incident review

Every outage deserves a quick retrospective. Ask:

• What caused the issue, and how long did it last?
• What did we do well?
• Where did we lose time or communication?
• What feedback did we receive from customers?
• What should change next time?

Document the review. Even a short Slack thread or internal note can improve your response the next time around.

Proof that preparation pays off from UrbanStems

When flower delivery brand UrbanStems decided to migrate from Salesforce Commerce Cloud to Shopify, they made the move four months before their busiest sales period of the year: Valentine’s Day.

The team undertook a full-stack upgrade focused on stability, speed, and customer experience. Thanks to that preparation, they experienced zero downtime during peak traffic, saw a measurable leap in performance, and gained the flexibility to scale without firefighting.

“This year on Shopify, what we were really excited about is there was no downtime for our customers. So customers were able to check out even in that last hour,” said Saschi Klee, VP of digital commerce at UrbanStems.

Here are more specifics about what changed after UrbanStems prioritized preparation:

• 27% increase in new customer acquisition
• 11% lift in add-to-cart rate
• 8% boost in average order value (AOV)
• 180% subscription growth during December
• 15% reduction in total cost of ownership (TCO)
• Over 50% of Valentine’s Day orders processed through Shop Pay

With the right tools and a readiness mindset, they turned their biggest risk window into their most successful holiday ever.