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Why Is My Card Being Declined?

7 Common Reasons Why Your Credit Card Is Declined

Today, we'll go over the seven most commonly encountered causes of credit card declines, beginning with incorrect shipping and billing addresses.


1. Mismatched Billing and Shipping Address

This reason is the most common cause for a card to get declined. To avoid this, ensure to note and remember these points:

  • Your credit card's Billing address should match the Billing address on the checkout page regardless of what the Shipping address is.
  • Double-check your address before finalizing it to ensure there are no typos, as the address line 1 and zip code on your Billing address will be checked by your credit card company.
  • Your credit card's Billing address should match the Billing address on the checkout page regardless of what the Shipping address is.
  • Any changes to your Billing address should be noted in order to prevent future denied transactions.

2. Reached Credit Card Limit

Reaching the maximum limit is one frequent cause of declined cards. Consider a scenario in which your credit limit is $5,000, you owe $4,500, and you're attempting to buy a $1,000 item. It would be best in this case to verify your exact balance. To avoid a similar scenario, it's a good idea to keep track of your expenses and remaining balance. The only solution is to settle the loan before making any further purchases.


3. Fraudulent Transactions

It's great that if there's questionable activity, your credit card company will refuse the transaction. You are shielded from fraud by using it. However, what if the purchase was legitimate? Costly purchases and changing locations are the two most common reasons for labeling some transactions as fraudulent. The problem can be solved with a brief phone call to your bank to inquire about the rejected payment. They should be informed that the purchases are authorized.


4. On Hold Transactions

Transactions on hold are a frequent cause that most of the time goes unnoticed. Have you recently stayed at a hotel or leased a car? Typically, these retailers will place a hold on your account. Once you check out or after you return the vehicle, the hold will be released from your account. Your credit line might not be as available as you had anticipated while this hold is in place. Your card can be refused if you charge more than what is permitted. Check with them To find out if the merchant can release the amount on hold.


5. Expired Credit Card

Despite the fact that you might think you know this information off by heart, it's actually quite usual to overlook it. When your credit card is ready to expire, your card issuer will typically issue you a new card before the old one expires. Examine your card's expiration date, and keep a look out for a response from your issuer in the form of a letter or email. You need to get in touch with your bank as soon as you realize your card is going to expire.


6. Traveling

Using your credit card while abroad could notify your bank that you are in a new state, city, or nation. To give away that your card has been stolen, card issuers frequently notice transactions at numerous sites within a short period of time. To fix this issue, you only need to give your bank a call and let them know that the purchases are allowed. In order to prevent future problems, you can also let them know in advance when you're traveling.


7. Missed Payments

Your bank might put a hold on your ability to use the credit card if you haven't made your payments on time. The best thing to do in that situation is to phone the credit card company and explain your situation. They'll know exactly what you need to do to update the account and can provide you with that information. To explore your alternatives for making up missed payments, call the company that issued your credit card.


How to Avoid Your Credit Card Getting Declined?

There are best practices you may follow to prevent issues with credit card rejection. The easy actions you may take to avoid having your credit card declined while using it to make future purchases are as follows:

  • If your address or phone number has recently changed, you should always update your billing information.
  • Account alerts can be set up by email or mobile. It will assist you in monitoring your finances and spending. If you have notifications, it's very simple to notice unauthorized transactions.
  • If you want to travel or move to a new city, let your card's issuer know. By doing this, you can steer clear of refused transactions that were made somewhere else.
  • Be wary of retailers who frequently place holds on your credit card. A hotel, car rental agency, or gasoline station are some examples. In order to prepare yourself, ask them about their policies.
  • You must make the full payment of your account balance before the due date or earlier. It will raise your credit score, which will also provide you peace of mind.
  • If you're having trouble with your finances, talk to your bank. A specific payment plan might be set up by your credit card issuer, particularly if you have an excellent relationship with them.

We hope this helps. If you need to speak to our customer service staff, call us at 1-833-777-0127. We are available from 6 a.m. to 4 p.m. PT Mondays through Fridays.