Credit Card Payment Declined? 5 Reasons Why This Happens And What To Do
Credit Card Payment Declined? One of the most frequent reasons why credit cards get declined is if you’ve entered the wrong details to complete the transaction
Credit cards offer great convenience for many routine transactions. Whether it is shopping online, booking a flight, or dining out, credit cards not only offer security, but also reward you with points. If you are a regular credit card user, you have likely faced a situation when your credit card payment was declined. Now, there are several reasons why this can happen. If you are in an emergency with no other mode of payment, a declined card payment can be rather stressful. To prevent such a situation, there are some steps you can take to ensure you card payments always go through. Let’s begin by finding out some common reasons why credit card payments get declined and what measures you can take to avoid this from happening.
Reasons why credit card payments get declined
- Entering incorrect information
One of the most frequent reasons why credit cards get declined is if you’ve entered the wrong details to complete the transaction. Entering the incorrect password, PIN, OTP, CVV, card number, or expiry date, can all result in the transaction being declined. This is often the cause for declined online transactions where a typo can prevent the payment from being processed. To prevent this, remember your card details or note then down securely if you’re unable to recall them.
- Exceeding the card limit or using an expired card
If you have exceeded your available credit limit or pre-set transaction limit, your transaction will get declined. For example, if your credit card limit is Rs 1 lakh and you try to make a payment exceeding that amount, your payment will not go through. Also, credit cards have a limited validity and expire after a certain number of years. If you swipe an expired card, your transaction will not go through.
- Suspicious activity on your card or technical glitches
To safeguard cardholders from payment fraud, banks monitor transactions for unusual or suspicious activity. If a suspicious transaction is detected, the bank may likely block your card. Suspicious activities may include a high-value transaction, multiple transactions in a short period, or transactions from a different location than usual. There are also times when technical glitches in the bank’s server, payment gateway, or the merchant's system network can cause transactions to get declined.
- Blocked Card
The bank may block your card for various reasons such as security concerns, fraud alerts, or repeated incorrect PIN entries. Any transaction using a blocked card will get declined. To resolve this, you can either unblock your card by resetting a password or get in touch with your credit card issuer to help out.
How to Avoid Your Card Getting Declined
Monitor Your Credit Limit and Usage
Check your credit card balance regularly to ensure you stay within your credit limit. Most banks provide SMS alerts or mobile app notifications when you are nearing your limit. By keeping track of your spending, you can avoid your card getting declined due to insufficient credit.
Be aware of expiry dates
Know when your card is about to expire and request for a replacement card well in advance. Banks typically send a new card a few weeks before your current one is set to expire. If you haven’t received your replacement card, follow up with your bank.
Notify the bank if you’re travelling abroad
If you’re traveling abroad, don’t forget to inform your bank beforehand. This will prevent your card from being flagged for suspicious activity when you’re using it abroad. Many banks also allow you to set travel notifications via their mobile app or customer service.
Pay Your Bills on Time
Make sure to pay your credit card bill on or before the due date. Timely payments made in full help keep your card account active and improve your credit score. Setting up auto-debit instructions for credit card bills can ensure payments are never missed. Also, review your credit card statements regularly for unauthorised transactions and report them to your bank immediately. This will help prevent your card from being blocked due to fraud.
Ensure network connectivity
When using your credit card for online transactions or at a POS terminal, ensure that you have a stable internet connection or that the terminal is functioning correctly. Technical glitches often arise due to poor connectivity and can lead to transactions getting declined.
Having your credit card getting declined, especially in an emergency, can be stressful and frustrating. But you can minimise or avoid this with a few simple steps. Additionally, make sure your mobile number and email address are updated in your bank records so you can receive all alerts.
The author is the AGM Communication, Bankbazaar.com. This article has been published as part of a special arrangement with BankBazaar.
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