Electronic methods and systems for processing a declined financial transaction

A server system in a payment network, comprising:

• a communication interface configured to receive a declined transaction notification signal about an identification of an authentication credential of a payment card associated with a user as incorrect, the authentication credential provided by the user for initiating a transaction in a transaction capturing device;
• a memory comprising executable instructions;
• and
• a processor communicably coupled to the communication interface and configured to execute the executable instructions to cause the server system to at least:
• verify if the user has opted for a dual authentication service, wherein the dual authentication service comprises facilitating re-authentication of a declined transaction via an application;
• if the user has opted for the dual authentication service, send a user approval notification signal to a user device via the application, the user approval notification signal sent for seeking a user approval of providing an incorrect authentication credential;
• receive, via the application, the user approval of providing the incorrect authentication credential;
• electronically facilitate re-authentication of the transaction via the application, wherein re-authentication comprises requesting the user to provide a re-authentication credential via the application;
• and
• electronically facilitate a completion of the declined transaction based on verification of the re-authentication credential.

A computer implemented method, the computer implemented method comprising:

• identifying, by a server system associated with a payment network, an authentication credential of a payment card associated with a user as incorrect, the authentication credential provided by the user for initiating a transaction in a transaction capturing device;
• declining, by the server system, the transaction based on identification of an incorrect authentication credential provided by the user;
• sending, by the server system, a user approval notification signal to a user device via an application, the user approval notification signal seeking a user approval of providing the incorrect authentication credential;
• receiving, via the application, by the server system, the user approval of providing the incorrect authentication credential;
• electronically facilitating, by the server system, re-authentication of the transaction via the application, wherein re-authentication comprises requesting the user to provide a re-authentication credential via the application;
• and
• electronically facilitating, by the server system, a completion of a declined transaction based on verification of the re-authentication credential.