Why was my credit card declined?
Quick insights
- Credit cards can be declined for many reasons, including using an expired card, entering the wrong card information during checkout and reaching your credit limit.
- Some card issuers may request that you inform them of overseas travel so your purchases aren’t flagged as potential fraud.
- If your card is declined and the reason is not apparent, you may want to contact your card issuer.
If your credit card was declined for a recent transaction, it may be important to find out why. It could be that you simply entered your credit card information incorrectly, or it could be something as serious as identity theft.
This article will help explain possible reasons why your card may have been declined and some ways to help prevent it from being declined in the future.
Why does my credit card keep getting declined?
Here are 10 common reasons why your card may have been declined:
1. You're traveling
Some credit card issuers may require you to report when you're traveling while others do not. For instance, Chase doesn't require cardmembers to provide travel notifications.
If your card issuer suggests setting travel notifications, alerting them that you're traveling may help reduce the chance of a decline. They may 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 allow you to exceed your credit limit but you could 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 likely 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, consider contacting your issuer about a replacement card. Once you receive your new card, 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
Consider contacting 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 some merchants in the country you're visiting refuse to accept a type of credit card that's commonly accepted in the United States.
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 ask you 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.
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, consider contacting the credit card company to discuss payment options. You may be able to regain use of the card through a payment arrangement.
10. Fraudulent activity
If your card company thinks that recent purchases look unlikely to have been made by you, they may freeze your card due to the potential of fraudulent activity. Sometimes this can happen on legitimate purchases. If your account is put on hold, contacting your issuer may help you gain access to your card again.
How to help prevent your credit card from being declined
To prevent your card from being declined, the following may be helpful:
- Knowing your balance and credit limit: This can help prevent your card from being declined due to you coming close to or exceeding your credit limit.
- If possible, have a backup payment method: Consider having an alternative payment method, such as another card or cash, in case your primary card is declined.
- Fraud alerts: Fraud alerts from your issuer can help identify potentially suspicious purchases that may have been made with your credit card.
In summary
There are many reasons a credit card can be declined. Common reasons include exceeding your credit limit, entering the wrong card information during checkout and attempting to use an expired card. Knowing your balance and credit limit and looking for fraud alerts may help prevent your card from being declined.
