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I was paying online for visa application (to Visa4UK) and I later(5/6 secs) got an email saying payment declined.

One of the possible errors (for me, the only possible) mentioned was:

Your Card Issuer referred the transaction for an authorisation code or 
further identity checks.

I contacted MasterCard provider and they told that I need to register for SecureCode, which I had not done previously. After that I registered for one. Now, after registration, I made payment again, I was declined again, thrice. I believe I was supposed to be asked for my SecureCode during the payment, which I was not.

Did anyone ever face this problem, how do I resolve this?

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You do not say what country you are in.

Manual rejection by customer is a possibility if all else fails to explain what is happening.
Note that error codes MAY be appropriate, but there is no guarantee that it is just being used for conceniecne and really only means "fail".

On one occasion I had VISA transactions declined in China when trying to book an air ticket. After several failures I rang the airline head office in Beijing. They put me through to a lady in accounts who said that she had seen the transactions arriving and had been manually cancelling them, entirely because she thought the credit card was being improperly used.Once I'd convinced her that I was me the tranaction (and many since) worked OK. .

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