Reasons Why Your Credit Card Can Be Declined

Reasons Why Your Credit Card Can Be Declined
 

Description: There are a few reasons why your credit card application might be declined by the card issuer. 
 

Having our credit card declined is one of the most humiliating moments that we would prefer to avoid. You might be at the grocery store with a long line of customers waiting for you to finish your business or on a romantic date where the waitress returns to your table to inform you that your credit card has been rejected. Embarrassing, isn’t it? In addition, you might need an explanation for your card getting declined and putting you in a humiliating situation. Here are a few reasons why your credit card might have been frozen by your issuer and ways to avoid such blunders.

An Expired Card:
 

Another way your credit card transaction might get declined is if you are using an expired card to make a purchase. Usually, the issuers are liable to send a new credit card before your current card expires. In case you haven’t received one yet, ensure that you inform your card issuer at the earliest to avoid any problems.
 

Erroneous Information:
 

When shopping online, mistyping card information such as credit card number, expiry date or the CVV number can result in the transaction being declined. Though mistyping your verification code for the first time doesn’t really freeze your card, repeated incorrect entries of false data will end with your credit card blocked. Take it slow, check the information you’ve entered if your transaction is declined. Cards which are expired usually tend to fail. In case your card has been blocked, contact your credit card issuing bank and unblock it.
 

Overseas Transactions:
 

There is a chance that your overseas transactions might get declined when your card is invalid on foreign soil. In such cases, informing the bank of your travel and including overseas purchases to your card can save you all the trouble from bringing back those memories.
 

Credit Limit:
 

The credit limit is one of the most common reasons why credit cards are declined. Any attempt to surpass your credit limit will only lead to unsuccessful transactions as the amount you can spend on your credit card is controlled by your credit card limit. Keeping an eye on your credit balances and paying off the debts on time will not only help you overcome such situations but also help you achieve a good credit score.
 

Technology:
 

Most of the credit card issuing companies these days provide cards equipped with a microchip and a pin to improve security. You are required to enter a pin in order to complete a transaction using such cards. However, forgetting your pin or using your card at an obsolete point of sale machine can lead to a declined transaction.
 

Foreign Currency Transactions:
 

For a person who has always made purchases in rupees using a credit card, his/her transaction may get declined when he/she tries to buy a service or product in a foreign currency. This is due to varying nature of your buying pattern that your credit issuing bank notices. A wise solution to this problem might be to inform your bank about your purchase.
 

Protection Against Fraud:
 

Usually, credit card issuers employ a software under their fraud protection program to analyse the cardholder’s spending pattern. If you’re the kind of person who utilises your credit card for mostly paying bills not bigger than a lunch and suddenly go on to buy expensive stuff like jewellery and electronic devices, the probability of your card getting blocked by your issuer is high as the sudden purchases made by you can be considered out of your regular spending pattern. This might also be an indication that your card is being used being used by someone else. Similarly, using your card at places far away from each other in a short period of time can also indicate an unauthorised use of your card and get your card declined. Hence, it is advisable to inform your credit card issuing company before indulging in any unusual shopping trips in the future.
 

Internet Connectivity:
 

Transactions can also be declined in cases when there is a poor internet connectivity. Usually, places like malls have multiple issues of connectivity due to the significantly high volumes of transactions every day. Requesting the merchant to provide you with a timeline and verify the issue can help you avoid such situations.
 

A Cancelled Card:
 

Your card can be rejected if your authorised credit card has been closed or replaced without your knowledge. In such cases, contact the account holder for any activities that can reflect on your credit card usage.

There might even be a chance that your bank has deliberately declined your transaction in order to save you from a scam. So make sure you contact your issuer the next time your purchase is declined. You may be able to sort out the problem sooner than you think. Indulge with the bank.