There are several reasons why your credit card may get declined, from simple human error to more serious issues such as fraudulent activity on their account. Some of the most common reasons are detailed below:
- You’ve exceeded your credit limit - One of the most straightforward reasons your card was declined is that you’ve exceeded the card's credit limit.
- Your card has expired - All credit cards have an expiration date, typically indicated by month and year on the card itself. If you are using an old, expired card for a transaction, it will be declined.
- You made a typo when entering your card details - If you entered any of your card details (for example, card number, expiration date, billing address etc.) incorrectly then the transaction will be declined.
- There has been a suspicious purchase using your card - Credit card companies have become much better at recognizing fraudulent purchases. If your card appears to have been used far from your home or has been used to make multiple identical purchases, this can alert the card issuer's fraud triggers. In addition, Credit card companies may occasionally flag legitimate charges as potentially fraudulent purchases and freeze the ability to use the card they think might be compromised.
- Your card has been exposed to a threat - Again, credit card companies have become very adept at picking up on potential identity theft. If there’s a possibility that your card information was leaked or exposed, your card might be rendered temporarily unusable. If your card has been declined and you’re not sure why, get in touch with your credit card company.
- A fraudulent transaction is suspected - Suspected fraud is one of the most common reasons for their card to be declined. Credit card companies are usually extremely vigilant when it comes to detecting suspicious activity, including unusually large purchases that are inconsistent with the spending habits and transactions that are made far away from their usual location. While fraud detection can help to catch and stop instances of illegal card activity, it can also sometimes lead to credit card companies flagging legitimate charges.
If your card has been frozen due to a case of mistaken fraud detection, contact your credit card company.
- Your credit card has a hold placed on it - Sometimes a merchant might place a hold on your account, which can affect transactions you make with your credit card. Certain merchants take this step to make sure you have enough available credit to complete the transaction and to protect themselves from risk.
Once the final transaction has been cleared, the hold will be removed from your account.
- Your card status has changed - If you’re an authorized user on someone else’s credit card, and they’re unknowingly removed by the holder of the account, their card will be rejected if they try to make a purchase. While an authorized user may be issued a credit card that can be used to make charges, the primary cardholder is the only one who can make changes to the account in question, including if and when to remove authorized users.
If you think you may have been removed from an account without your knowledge, contact the primary account holder. As an authorized user, they will not be able to add you back to the account.
