Many of the credit card holders experience an embarrassing moment with the declined credit card, especially in a shopping area, with all the products gathered in the cart. At times, the card gets declined during the emergency and thinking of an alternative payment mode is almost impossible. Understanding the reasons why credit cards get declined and avoiding them can help you avoid the humiliating experiences.
- Exceed Limit
Usually, debit cards are declined when the fund in the account is insufficient and similar to that, a credit card is declined if the cardholder crosses the credit limit. Further, some bankers block the cards for default in the repayment.
To rule out this issue, keep an eye on your balance. If your expenses are 10%-30% below the limit, a good credit score can be maintained.
- Data Error
The cards are rejected when the code is not entered properly. Further, expired cards may not fetch you the requested money.
When you experience card rejection more than once, slow down the pace and check if you have entered erroneous data. At times, multiple incorrect entries may also lead to rejection. Change of address too can also be a reason for the decline. Make sure to apply for renewal of the old card, before it gets expired. If there is any automatic payment, make sure to update them about the expiry date.
- New Rules
The multiple credit card holders need to make prompt payments because a single missed payment on a card may reflect on another, especially if they are from the same issuer. Since the credit card companies constantly watch over the payment details, the possibility of reducing the credit limit due to the default in payment can happen.
To avoid it, make sure to maintain good credit history and regularly monitor your email, which may include details about the new rules.
Sometimes, the newly replaced card details or the account closed information is not passed on to one of the authorised user, in case of multiple user credit cards.
Check with the bank about the recent update of the credit card and inquire about the reason that affects the ability to use the card.
- Unusual Activity
The credit card companies keep track of your expending pattern and if there is anything unusual, they may block the credit card to avoid fraudulent practices. Similarly, when your card has been used in an unusual location, rejection may happen.
If you use a card which does not have an embedded computer chip, it may not work on EMV technology, which is common in European countries. Therefore, if you are travelling offshore, contact your credit card issuer and learn if the card is valid in your travel destination.
- Change in Shipping Address
An online purchase is declined, if there is a change in the shipping address so as to avoid fraudulent practices. Immediately call the hotline for instant help.
- Wrong Card
Using a debit card or gift card or a prepaid card instead of the credit card may leave you embarrassed of rejection. Sometimes, if the merchant’s payment system does not support your card, you may face rejection.
- Closed Account
In case of the bank account being closed for a reason, the credit card is rejected.