What does a declined response indicate about a transaction?

A declined response indicates that the transaction has been denied and will not be honored by the payment processor or financial institution involved. This response typically results from various factors, such as insufficient funds, account issues, or potential fraud alerts. The integrity of the transaction is compromised, meaning the merchant cannot proceed with processing that specific payment at this time.

The other choices revolve around statuses that suggest either approval with qualifications or pending conditions, which are not applicable when a transaction has been clearly marked as declined. For instance, scenarios like requiring further verification or being flagged for review pertain to situations where the transaction is still in a state that could lead to approval, rather than a definitive denial.