How to resolve and prevent a declined credit card transaction
Quick insights
- Credit cards can be declined for several reasons, including entering incorrect information, reaching your card limit and suspected fraud.
- You may want to log onto your account to help determine why your card was declined.
- Setting up account alerts, monitoring your transactions and making timely payments may help you prevent declined transactions.
You’ve clicked the buy button after entering your credit card information online. You’re ready to receive a purchase confirmation, but instead, the opposite happens. Your card is declined, and the transaction doesn’t go through. This can happen for a number of reasons including not enough available credit and suspected unauthorized activity on your card.
Having your credit card declined can be a frustrating experience. In this article, we’ll discuss why your card can be declined and what you can do to try and resolve this issue.
What is a declined credit card transaction?
When your card is declined, the transaction will not go through. If you’re making a purchase online, the checkout page will likely notify you that that transaction was not processed. If you’re using your card in a store, the payment terminal or clerk may notify you that your card has been declined.
There are many reasons why your card can be declined, including:
- You have reached your credit card limit
- You are using an expired card
- Your card is not accepted by the merchant
- You entered the wrong information during a transaction
- You’re late on credit card payments
- Your card has a hold on it
Some cards may also be declined due to technical issues with the merchant’s site or your browser.
Resolving a declined credit card
You will likely want to figure out why your card was declined when this happens. Given that there are many reasons a card can be declined, you may need to do some investigating to determine the reason.
Here are a few steps you can take:
Verify your information
If your card has been declined when shopping online, incorrect information could be the culprit. Double check that the card information you entered is correct, including the card number, expiration date and security code. You may also want to verify that the billing address you entered is correct.
If you’re using a card that has been saved to your phone or computer’s browser, it may be a website or technical glitch. Clearing your browser's cache or using a different browser could resolve the issue with your card if it was declined due to outdated card details saved in your browser.
Check your account
Logging into your account may provide useful insights after your card has been declined. Often times, card issuers will flag any issues on your account. For example, you may be able to check if you've exceeded your credit limit or if there is suspicious activity on your card once you log in.
Ensuring that your personal information is up to date can also be helpful. Outdated information, especially an incorrect billing address or security settings, can sometimes trigger declines.
Contact your card issuer
Contacting your card issuer can help you get to the bottom of the issue. A customer service representative may be able to pinpoint the reason your card was declined and provide steps to rectify the issue.
Some card issuers may send alerts via text or email when your card is declined, providing an explanation and actions you can take.
Ways to prevent declined transactions
Declined credit card transactions can be a hassle, especially if you don’t have an alternative form of payment.
Here are some ways to potentially prevent declined transactions:
Monitor account balances regularly: Keep track of your spending and available credit. This may help you avoid exceeding your credit limit, which is a common reason for declines.
- Set up alerts: Many credit card issuers offer customizable alerts that notify you of specific activities, such as approaching your credit limit or transactions exceeding a set amount. These alerts can help you take action before a transaction is declined.
- Update personal information promptly: Ensure that your credit card issuer has your current contact information, including your billing address, phone number and email. Changes in this information, particularly billing addresses, can sometimes lead to declines.
- Make payments on time: Late payments can impact your credit card’s account status. To keep your account in good standing, pay at least the minimum due each month on time.
- Check expiration dates: Expired cards will likely be declined. If your card is close to expiring, contact your issuer to issue a replacement card if they haven't already sent a new one.
- Prioritize security: When shopping online, check if websites are secure (among other things, look for https at the start of the URL) and that your internet connection is safe. Unsecured connections may lead to security breaches, resulting in declined transactions.
Many card issuers used to recommend alerting them to upcoming international travel because international transactions could sometimes be flagged as suspicious activity. However, many card issuers—Chase included—no longer recommend this as security and suspicious activity detection have become more sophisticated.
In summary
There are many reasons a credit card can be declined, including incorrect account information, exceeding your card’s credit limit, credit card holds and suspected unauthorized activity. To figure out why a transaction has been declined, you may want to log into your account online or contact your card issuer's customer service.
Updating your personal information in a timely manner, regularly checking your account, setting up account alerts and making card payments on time are some ways to help avoid your credit card being declined.
