What does the term "transaction failure" indicate?

The term "transaction failure" most commonly indicates an unsuccessful attempt to complete a financial transaction. In this case, the correct answer reflects a situation where a payment is declined because there are insufficient funds in the account to cover the transaction. This means that the attempt to complete the transaction could not proceed, which aligns with the concept of a transaction failure.

Understanding this definition is crucial in financial contexts, especially in banking and payment processing, where knowing the reason for a transaction failure can help identify issues that need to be resolved, such as funding or account problems. Conversely, other options do not align with the definition of transaction failure; successful payment processing signifies a completed transaction, errors in bank software typically refer to technical issues not related to account balances, and a verification of account balances is more about confirming available funds, not failure.