Having your credit card declined is both embarrassing and inconvenience. It’s not always necessarily your fault - sometimes there’s a problem on the credit card issuer’s end. Even the merchant may have technical issues that can cause your credit card to be declined. Before you panic, here are some reasons that explain why your credit card could be declined.
You don’t have enough available credit. Some credit card issuers will allow you to exceed your credit limit, others will decline any transactions that would put you over your credit limit. If you’re not aware of your credit card balance, checking your available credit before swiping your credit card will keep you from having your credit card declined. You can check your balance right from your smartphone by going to the credit card issuer’s website or by downloading their smartphone app.
Sometimes your credit card can even be declined if you don’t have enough available credit to authorize the transaction. This can happen when you’re reserving a rental car or hotel.
Your credit card has expired. Check the expiration date embossed on the front of your credit card. If the expiration date has passed, that could easily explain why your credit card was declined. Many credit card issuers automatically send a replacement credit card before the expiration date. It’s possible that you missed it in the mail. If you haven’t received a replacement for your expired credit card, call your credit card issuer to have one mailed to you.
Your credit card issuer cancelled your credit card. There are a number of reasons your credit card issuer may cancel your credit card. For example, the credit card issuer may be removing that credit card from its product list. Or, your credit card can be cancelled because you’ve fallen behind on your payments or you haven’t been using your account. If your credit card is cancelled, having it reopened may not be an option.
Your purchase is outside your normal habits. Your credit card issuer may suspect fraud on your account and may decline the transaction. This protects your account from fraudulent transactions, but can get in the way of your legitimate transactions. Give a quick call to your credit card issuer to let them know that you’re the one making transactions on your account. If you’re going to be travelling internationally, call your credit card issuer before you leave so they won’t flat your transactions as fraud.
You’ve missed a couple of credit card payments. Many credit card issuers will suspend your purchasing abilities if you fall behind on your credit card payments by 60 to 90 days. Catching up on your payments will typically restore your account right away. Of course, catching up on your credit card payments will also prevent future late charges and further damage to your credit rating. Note that if you don’t catch up on payments, your account will be charged-off and you’ll lose your ability to make purchases for good.
Having your credit card declined is always a possibility, even if you're always responsible with your account. Because of this, it's important to always carry a second or even third payment method with you. This way, you'll have a back up source for paying for transactions if your primary credit card is declined.