Have you ever had your credit card declined and not known why? It certainly can be frustrating, not to mention embarrassing! Your credit card can be declined for a number of reasons and while the list includes having met or exceeded your credit limit, there are a whole slew of other reasons a credit card can be declined, as well. Here is a rundown of what you need to know:
If your card was declined, one of the first things you should do is check the expiration date. One of the most common causes of a credit card being declined is that it has expired. Credit card companies almost always mail you a new card before your old one expires, but if you haven’t received a new card you may not even realize your card has expired until it is declined in the checkout line. As soon as you receive a new card, activate it immediately and shred your old one. This way you won’t have to worry about your card expiring.
Another common reason your credit card may be denied is because the issuer has blocked your card for one reason or another. One reason your card may be blocked is because your card issuer suspects fraudulent activity on your account. Cards are generally blocked for your own protection, but it can be frustrating to lift a credit card block once it’s placed!
Reached Your Daily Limit
In order to protect you and themselves against fraudulent activities, credit issuers will very often set a daily spending limit on your card. Think about it, if you rarely use your card and then one day $1,000 worth of activity takes place, this very well could be a red flag for fraudulent charges.
Credit Card Is Damaged
Another reason your card might be declined is if it is damaged. Occasionally, the magnetic strip on your credit card may stop working. This can be due to overuse or heat damage.. If your card is getting worn or looks warped or bent in any way, this is a sign that you may need to get a card replacement.
Missed Monthly Payment
If you failed to pay your credit card bill, your card issuer may freeze your account and not allow you to make any additional purchases until a payment has been made, regardless of whether or not you have credit remaining. If you are planning a vacation or other trip over the time your bill is due, you are better off making or scheduling a payment before you leave home.
Credit Card Machine Malfunctions
Occasionally, a purchase may be declined because the credit card machine has malfunctioned.
Error In Number Or Expiration Date
If you are making a purchase on line and your card is declined it may be because you mistyped your number or accidentally entered the wrong expiration date.
It is easy to see now that your card can be declined for a number of reasons. When your card is declined, it is a good idea to ask the person who swiped your card for the error code. Then, immediately call your credit card company and try to get the issue resolved.