CARD PAYMENT DECLINE REASONS
PAYMENT FAILURE – PAYMENT TRANSACTION CANCELLED OR FAILED
WHEN TRYING TO MAKE A BOOKING PAYMENT OVER THE INTERNET
DEBIT OR PREPAID CARD WAS DECLINED – MAIN REASONS
A debit or a prepaid card differs from a credit card in that the funds you’re using are being withdrawn directly from your checking account. Debit cards are convenient for making purchases and ATM withdrawals and prepaid to make payments mainly over the internet, without you having to pay interest charges of a credit card. Yet like a credit card, the merchant or provider can deny the transaction for a number of different reasons.
Most of the time, the solution to these problems is to contact your payment card’s issuing institution and ask them to adjust your daily spending limit to the maximum transaction size or to unlock your card. Most payment card issuers can make these changes and have them take effect immediately allowing you to complete your payment.
Here are the main reasons why a debit or prepaid card was declined:
1. The card doesn’t have enough funds
This is the most common cause of a debit card being declined, and one that you can easily avoid by keeping a careful track of your spending. Unless you have overdraft protection, most banks will not allow you to make a payment that goes beyond your available balance.
How to avoid it:
See if your financial institution offers a mobile app that shows your up-to-date balances and transactions. Check this before making your purchases to ensure you have enough funds.
2. The payment amount exceeds your monthly or daily spending limit
To help protect your funds, most financial institutions will have monthly and daily withdrawal limits on your accounts. This will often be a combination of ATM and payment transactions.
How to avoid it:
If you know you’ll need to exceed your monthly or daily withdrawal limits on your accounts, inform the bank ahead of time.
3. Your bank was suspicious of the transaction
Most banks reserve the right to decline any payment transaction they deem to be out of character with your normal spending or withdrawal habits. In most cases this can be cleared up at the register with a quick call to the bank. Some banks have security features in place and can be a little too safe and block authentic transactions.
How to avoid it:
If you are planning to make a payment, or booking, especially over the internet, notify your bank beforehand to get preauthorization.
4. You’ve made an international payment or booking
Many banks offer Visa or MasterCard debit or prepaid cards, which allow you to use them when making payments over the internet, from anywhere in the world. This is a convenient and secure way to make your overseas booking payment over the internet. Unfortunately, it doesn’t always work the way you intended, and you could find yourself without access to your money if your debit card is declined.
How to avoid it:
Inform the bank before making your trip so they won’t flag your payment as unusual activity. This should help to make sure your money is available.
5. The information you’ve entered doesn’t match your personal details
This is common with online payments. The merchant takes extra precautions to verify your identity by asking for personal information such as name on the card and your address. If you have entered anything incorrectly, you won’t be able to make your payment.
How to avoid it:
Before making a payment online check that the personal information you entered matches that of the credit card you’re using.
6. It’s expired
Some debit or prepaid cards also have expiration dates like credit cards. If yours has expired, it won’t be accepted for payments.
How to avoid it:
Check the date and know when the debit or prepaid card is due to expire. Ask for your replacement card well in advance to avoid losing access to your account. Make sure you destroy the old card, as it does contain personal information you don’t want others to get a hold of.
7. Your debit card has been locked by your issuing institution
This often happens when you enter an incorrect PIN at an ATM more than a few times. If your debit card is locked the more likely is that you could not be able to perform any payment transaction.
How to avoid it:
Avoid entering an incorrect PIN to many times (usually 3 times). If your card is blocked you have to contact your debit card issuer.
8. Your joint holder deactivated your card
If you’ve opened a joint banking account with your spouse, partner or other family member they’re allowed to deactivate your debit card without permission from you. If this happens, you won’t be able to make payments.
How to avoid it:
With a joint account you can require that both account holders sign for any major changes, including adding or deactivating any debit cards.
CREDIT CARD WAS DECLINED – MAIN REASONS
When you try to make a payment with a credit card, the payment system communicates with your credit card issuer to determine whether your credit card is valid and you have enough funds available for the transaction. If everything is fine with your credit card, the system sends back an “approved” message and your transaction completes. However, in some cases, the credit card issuer sends back a message declining your credit card transaction.
There are a few common reasons your credit card could be declined. Some of them could be a miscommunication between you and the credit card issuer. Or, it could be due to something you’ve done with your account. Here are a few common reasons that might explain why your credit card declined:
1. You Don’t Have Enough Available Credit
Your available credit is the difference between your credit card balance and your credit limit. You could run out of available credit after a spending spree or if you’ve had your credit limit cut unexpectedly. Keep in mind that authorization holds from places like hotels and car rental agencies also reduce your available credit.
2. Your Account Is Closed
Credit card issuers can close credit cards without warning for a variety of reasons. Or, it’s possible that your credit card issuer sent a letter, but you haven’t received it yet.
3. Your Payment Is Past Due
If you’ve missed a few credit card payments, your credit card issuer has likely suspended your ability to make new payments. You’ll have to bring your account current to restore your purchasing privileges.
4. Your Credit Card Has Expired
Check the expiration date on your credit card. If the expiration date has passed, that would explain why your credit card declined. Your credit card issuer may have sent a replacement card in the mail. You just need to get the new card and activate it.
5. Your Account Has Been Flagged for Fraud
Credit card issuers are constantly monitoring your credit card transactions to be sure they fit the pattern of your typical purchases. Anything outside your normal spending habits could be flagged as fraud and cause your credit card to be declined.
What to Do if your Credit Card is declined?
If your credit card is declined, the easiest thing to do is complete your transaction with another payment method such as cash, debit card, or another credit card.
To find out what’s happening with your account, give your credit card issuer a call. They’ll be able to tell you the exact reason your credit card declined. In some cases, like suspected fraud, for example, your credit card issuer can fix the issue so your transaction can process normally.