If your credit card has ever been rejected, you know how frustrating and embarrassing it can be.
You hand your card to the cashier or drop it into the terminal, expecting to be on your way home with fresh goods in a few minutes. But then the transaction fails, and the teller and other restless shoppers wait while you fumble in your wallet for another card or wad of cash.
Luckily, there are a few things you can do to help prevent this from happening. In this article, we’ll take a look at seven of the most common reasons your credit card might be rejected, as well as what you can do to fix the problem.
8 Common Reasons Your Credit Card Has Been Declined
Sometimes your purchase will be rejected for a reason that you can easily resolve. In other cases, the issuer won’t approve your purchase because they don’t want you to accumulate debt that you can’t fully repay at the end of the month.
Here are the most common factors that cause a credit card purchase to be rejected:
1. Wrong card information
You may have entered your details incorrectly when registering your card online or when trying to make a purchase.
If you’re buying something online, check that you’ve entered your credit card number, CVV security code, and expiration date correctly. If you are using a physical card, make sure it has not expired.
You should also double check with your card issuer to see if they have the correct billing address on file. If you have recently moved, the issuer may reject your purchase because the company is waiting for you to update your address.
2. Reaching the credit limit
If you’ve made a lot of purchases lately, you may have reached your credit limit. This can happen even if you have a high limit, so you still need to keep track of your spending.
3. Validity
If you try to use an expired card, your purchase will be rejected because the card is no longer valid.
4. Fraud prevention
If you use your card while traveling internationally or domestically, your issuer may assume your card has been stolen and block your account.
Also, your card issuer may reject your purchase if it does not recognize your purchase pattern. For example, you may receive a temporary waiver if you have never made a purchase of that amount before, or if you are trying to make a purchase in a country where you do not normally make purchases.
5. Deactivation by the main card holder
If you are an authorized user and the primary cardholder deletes you or reports that the card is lost or stolen, your card may be rejected.
6. Delayed payments
When you are late in payments, your credit card issuer may reject your purchase for any amount, even if you have not reached your credit limit.
7. Closed account
If you have a credit card that you rarely use, your account may be closed without your knowledge due to inactivity.
8. Card damage
If your credit card’s magnetic stripe or EMV chip is damaged, your transaction attempt may not be processed at all. Thankfully, many cards in the US still have both strips and chips, and card readers usually offer both as well. So, if your card has indeed failed verification, your chances of not being able to use it for personal transactions are relatively low.
What to do if your credit card is declined
If your credit card is declined, the first thing to do is stay calm. It might be a little awkward, but no need to stress.
Many times you will be able to quickly resolve the issue that is preventing your card from working. If you are in a store when your card is declined, ask the cashier to swipe your card again. If the purchase is still not approved, you can use another payment method to complete the transaction.
If your card is not working even after you have tried to swipe it several times, you should contact your card issuer’s support service as soon as possible.
The customer service phone number is located on the back of the credit card or on the issuer’s website. Once you resolve the issue, you should be able to use your card again without any issues.
How to prevent credit card rejection
There are a few things you can do to reduce the chance of a card being rejected and be prepared when it happens, including setting up credit limit notifications, updating your contact information, using backup payment methods, setting up travel notifications, and staying connected. top of your payments.
Find out your credit limit
To stay below your credit limit, you need to know what it is. You can always check your most recent credit card statement to see your credit limit, or you can call your issuer and request one. If you’re worried about switching, you can also sign up for credit limit alerts from your card issuer.
Always pay on time
You can also set up account alerts for due dates so you don’t forget. Other options include setting up automatic payments or adding a reminder to your calendar or smartphone.
Subscribe to security alerts
Other alerts to be aware of include alerts for when your card transaction exceeds a certain amount, as well as overseas transactions.
Let your bank or credit card issuer know about your travel plans
If you plan to travel and use your credit card for purchases or ATM withdrawals, we recommend that you notify your bank or credit card issuer in advance. This way, they can update your account with your travel plans so that your card doesn’t get rejected because it looks suspicious.
Typically, your card issuer’s app or website has an option to set up travel alerts. Some issuers even let you set up alerts in their mobile apps.
bottom line
Whether you are at home or elsewhere, it can be frustrating to realize that your credit card is not working. If your card is declined for any reason, please remain calm and contact your issuer as soon as possible.
You can quickly restore your card and return to carefree reading.
Editorial disclaimer
The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.
