Lightspeed Payments -- Pre-Paid Gift Cards Declining (i.e. Visa)

TW_TW_ Member Posts: 4

Hi all,

We just switched over to Lightspeed Payments from Cayan a little over a month ago.

Ever since switching though, we have been having issues accepting pre-paid gift cards (NOT Lightspeed gift cards), such as Visa.

Regardless of the active balance on the card, it would get declined every single time.

This is happening to both the card terminal and manual payment.

We have been in touch with Lightspeed's CS team for the past few weeks for this and they haven't been able to give me a viable solution.

Has anyone who's using Lightspeed Payments have had this issue?

8 comments

  • johnnymangosjohnnymangos Member Posts: 1

    We have been having this issue. I opened a ticket with support, and I haven't heard back anything yet.

  • dsteinbeckdsteinbeck Member Posts: 25 ✭

    Just found out we have the same issue....ughhhh

  • gregaricangregarican Member Posts: 750 

    Seeing it's been an active issue for weeks now with no reply on here, I wouldn't hold my breath. Unfortunately.

  • LightUserLightUser Member Posts: 14

    What is better: Lightspeed payments or a third party payment processor like Vantiv or Cayan?

    Processing fees at Lightspeed payments seem unusually high.

    And, not being able to process Visa/MC gift cards is clearly an issue.

    Am i missing something?

  • gregaricangregarican Member Posts: 750 

    The payment processing might not necessarily be integrated. I'm not sure if Lightspeed Retail integrates with third party payment processors or not. That being said, if you had standalone payment processing, then the card types would just be manual payment type options in Lightspeed Retail POS.

    There would not be visibility all in the same system, like how now in Lightspeed Retail you can drill into a specific sale, drill into the payment card transaction, etc. You would have to cross-reference the sale transaction over in the third party payment processors web portal or something.

    If you are willing to live with those workarounds then you likely could save the sales percentage fees by just implementing standalone payment processing. Our larger company that doesn't use Lightspeed Retail follows this model. While it's not integrated it saves us considerably on those transaction fees.

  • TW_TW_ Member Posts: 4
    edited December 2021

    @LightUser

    We switched over to LS Payments from Cayan recently. Cayan used to go down sometimes unfortunately and their reporting/CS was horrendous, and LS Payments was going to save us more money so we didn't think twice before switching over. Little did we know, we would be stuck with this gift card issue and have already lost a couple thousand dollars worth of sale in the span of 2 months (since, well, holiday season).

    One thing with Cayan that we miss very dearly was that 1. it didn't decline gift cards unless there's an actual problem with the card, and 2. the balance on the gift cards could be used up as a partial payment if the card does not have enough money. For example, if the card has $15 and sale is $20, it would go through for $15 and shows us the balance of $5 to be paid for. LS Payments would decline a gift card automatically if there isn't enough balance left on the card, so without checking the exact amount that is on the card (which customers wouldn't normally know if it's a used card), we wouldn't be able to take the card. To be accommodating, we have been looking up gift card balances online on behalf of the customers, which is a whole darn waste of time for both the customers and us especially if LS refuses to take the card anyway.


    After going back and forth for weeks/months Lightspeed only told us that the gift card company is at fault with this, and that the customers would have to contact the card issuing companies to resolve the issue.

    So far, we have been unable to process all Visa gift cards including Vanilla and SecureSpend.

    I was losing hope since I didn't see others commenting on this thread, but now I do see that this is more likely LS Payments issue as I originally suspected.


    @gregarican

    We have a smaller brick & mortar store and we have been doing this instead when LS Payments fail gift card payments:

    1. Try running it on Square POS
    2. Ask customers to purchase the products on our Shopify store and submit the order as "pick-up" so they can take the goods away
    3. Send customer Paypal Invoice instead (and have them pay with the gift card)

    Miraculously, those cards that wouldn't work on Lightspeed would go through perfectly on those 3 other platforms. Weird, seeing how LS said the cards/card issuing companies are at fault.

    Even with these workarounds we have been in dilemma because not all employees have the authority to utilize all 3 platforms, reporting at the end of the day becomes hectic, transactional fees are higher on some platforms, and all of those options take so much more time to process than a simple swipe-and-go that should always go through.


    We're now heavily considering going back to Cayan, at least we could accept payments and make money there.

    If anyone else has this same issue, please comment and I would love to add it to my case with LS.

  • TW_TW_ Member Posts: 4
  • gregaricangregarican Member Posts: 750 

    @TW_ those are all very good workarounds. We employ those same methods at our stores when the default payment processing mechanism is unavailable. Since those methods "just work" then that should be a hint to Lightspeed that they need to fix what is apparently an issue on their end. 😔

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