8 Possible Reasons for Credit Card Being Declined

Credit and debit cards have become our new best friends. From online shopping to booking tickets to any, day to day shopping, these cards have become an integral part of our lives. While carrying credit and debit cards has made holding on us any cash unnecessary, it also has some cons. Agreed carrying these cards has made life simple, but what when your card gets declined?

Here are probable 8 reasons for credit cards to be declined:

1. Credit Limit: This is the most common reason and all credit card users sure know this one. All cards have a credit card limit i.e the maximum amount you can spend on your card preset by the issuer during the issuance, which if we cross or are very close to crossing could cause decline of payment.

2. Uncommon purchase: When your card has only been used to make bill payments online and suddenly if swiped for an expensive purchase then the transaction will be rejected even if you have enough credit limit. The reason why such a purchase can be declined is because it is probable that the credit card company thinks that it is unusual for you to do such a purchase. Some transactions like buying gold; electronics and cash withdrawals will be declined if your credit is constantly used for smaller value swipes.

3. Invalid card: If you are using an add-on card that gets declined, it is possible that the primary cardholder has either reached the maximum account limit or has closed the account.

4. Change in terms and conditions: holding multiple credit cards from the same bank can pose a problem. If you default payment on one of those cards, it is possible that bank has blocked the other cards. In such an instance your swipe will be declined. Even if you have multiple cards from different lenders, banks randomly pull your Cibil credit score to take a relook at the creditworthiness. If the bank feels it has to lower your limit, it will give you a notice and do so.

5. Unknown location: If a transaction is made suddenly in a different geographic location such transactions are bound to be declined. The lender will mostly assume it is fraudulent transaction. So in case of foreign travels, it is a wise step to call your credit card company and inform them about your scheduled trip.

6. Unusual currency: If you have always made bought in rupees and suddenly if you use your card to buy a ticket online in dollars that too with a heavy amount, this transaction is bound to be declined. Call your credit card company and give them a heads up before making such a purchase.

7. Technological reasons: These days, most of the new credit cards that are being issued come with an inbuilt chip. Now, to clear such a transaction, you need to key in a PIN number. Sometimes the merchant may be using a point of sales (PoS) machine that is out dated or if you have forgotten your PIN number or if your credit card is new and if you have not yet registered your PIN number, the transaction could be declined.

8. Wrong data: If you have entered a wrong billing address while buying a product online, or if you have entered a wrong credit verification value (CVV) or a wrong code for 3D secure password, the transaction will be declined.

If ever in such an unfavorable situation, it is advised to call the respective bank and inform them of the issue. Most cases are petty and there is a high chance of them being resolved over phone.

Lastly, save the customer care number of your bank on your phone so that, when you are in hurry to call them, you don't run from pillar to post.

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