If your credit card was declined for a recent transaction, it's important to find out why. It may be that you simply entered your credit card information incorrectly, or it could be something as serious as identity theft. This article will go over possible reasons why your card may have been declined and how to help prevent it from being declined in the future:
- 10 reasons why your card may have been declined
- How to prevent your card from being declined
Why does my credit card keep getting declined?
Here are 10 reasons why your card may have been declined:
1. You're traveling
If you're traveling internationally (or even domestically) and use your card, your credit card issuer may assume that your card was stolen and lock your account. If your card issuer suggestssetting travel notifications, alert them that you're traveling ahead of time to prevent this from happening. They'll ask you where you're going and for approximately how long.
2. You reached your credit limit
If you reach your card's credit limit, your issuer may prevent you from making any additional purchases. Some credit card issuers will allow you to exceed your credit limit but you may incur a fee for doing so. In addition to preventing you from using your card, exceeding your credit limit may also negatively affect your credit score. You'll need to make payments on the card in order to use it again.
3. Your card has expired
Your purchase will be declined if you try to use a card that's past its expiration date. If you haven't received your new card, call your issuer and see when the replacement was issued. It could've been sent to an old address if you recently moved. Once you receive your new card, make sure to activate it and destroy the old card.
4. Your card was closed
There are several reasons why your card may have been closed without your knowledge, including:
- You didn't comply with your card agreement terms
- You haven't used your card in a while
- It was closed by mistake
Call your credit card issuer to discuss why the card was closed and if it may be reactivated.
5. Your card isn't accepted
Not all credit cards are universally accepted. For example, if you're traveling you might find that most merchants in the country you're visiting refuse to accept a type of credit card that's commonly accepted in the United States. If you can, always travel with at least two types of credit cards.
6. You entered the wrong information
If you're entering your credit card information and you make a typo, you'll find that your transaction is declined. Online merchants will askyou to type in your credit card account number, expiration date, CVV and address. If you make a single error on any of these fields your transaction may be declined.
7. Your card has a 'hold' on it
Rental car companies, hotels and other merchants may put a hold on your card in order to ensure that your credit card doesn't get declined once they submit the final charge. It's possible for a hold to stay on your card even after you've paid your balance. Try to make sure that your credit limit is high enough to handle these types of holds.
8. Your card was deactivated by the primary cardmember
If you're an authorized user and the primary cardmember removes you from the account or reports their card as lost/stolen, you'll lose the ability to use your card.
9. You're late on payments
Being late on payments can hurt your credit and your credit card may be canceled by the issuer. If you miss a payment, call the credit card company and try to pay it as fast as you can. If you're unable to pay the amount, explain your situation. You may be able to regain use of your card through a payment plan.
10. Fraudulent activity
If your card company thinks that recent purchases look unlikely to have been made by you, they'll freeze your card due to the potential of fraudulent activity. Sometimes this can happen on legitimate purchases. If your account is put on hold but you actually made the purchases, call your issuer and explain so you'll have access to your credit again.
How to help prevent your credit card from beingdeclined
To prevent your card from being declined, try to:
- Know your balance and credit limit: This can help prevent your account from being put on a hold due to you coming close to orexceeding your credit limit.
- If you can, always have a backup: Have another card and cash on hand in case your primary card is declined.
- Look for fraud alerts: Look for fraud alerts from your issuer. That way, you'll know if your credit card issuer has identified any unusual purchases that may have been made with your credit card.
- Inform your issuer of any travel plans: Take the time to inform your credit card company of any upcoming travel plans.
Chase Sapphire is an official partner of the PGA Championship.
As an expert in personal finance and credit management, I've navigated the intricate landscape of credit cards, transactions, and financial security. My knowledge extends beyond the basics, delving into the nuances that can impact your financial transactions. Let's break down the concepts covered in the provided article:
1. Traveling and Card Locking: When you're on the move, especially internationally, your credit card issuer might perceive your transactions as suspicious and lock your account to prevent potential theft. The article suggests setting travel notifications to inform the issuer in advance, preventing unnecessary disruptions.
2. Credit Limit: Exceeding your credit limit can lead to declined transactions. While some issuers may allow over-the-limit transactions with a fee, it's crucial to manage your credit responsibly to avoid negative impacts on your credit score.
3. Card Expiration: An expired card will result in transaction declines. It's emphasized to activate and destroy the old card upon receiving a replacement, addressing potential issues like cards sent to outdated addresses after a recent move.
4. Card Closure: Various reasons, such as non-compliance with card agreement terms or prolonged inactivity, may lead to the closure of your credit card. The article advises contacting the issuer to understand why the closure occurred and explore the possibility of reactivation.
5. Card Acceptance: Not all credit cards are universally accepted. The article highlights the importance of carrying multiple cards, especially during travel, to ensure acceptance by merchants in different regions.
6. Incorrect Information: Typographical errors while entering credit card details can result in transaction declines. Online merchants typically require accurate information, including the account number, expiration date, CVV, and address.
7. Holds on the Card: Certain merchants, like rental car companies or hotels, may place holds on your card. Ensuring a sufficiently high credit limit can prevent issues even after you've settled your balance.
8. Deactivation by Primary Cardmember: If you're an authorized user, removal by the primary cardmember or reporting their card as lost/stolen will deactivate your card.
9. Late Payments: Late payments can lead to credit card cancellation. The article advises prompt communication with the credit card company to settle outstanding payments and potentially regain card usage through a payment plan.
10. Fraudulent Activity: Unusual purchases may trigger a freeze on your card due to suspected fraudulent activity. Communicating promptly with the issuer can help resolve such situations.
Preventing Card Declines: The article suggests several proactive measures:
- Understanding your balance and credit limit.
- Having backup cards and cash available.
- Monitoring fraud alerts from your issuer.
- Informing your credit card company about upcoming travel plans.
In essence, by being vigilant and proactive, individuals can significantly reduce the likelihood of their credit cards being declined and navigate the intricacies of financial transactions more effectively.
