Having your credit or debit card declined can be embarrassing and inconvenient, but it happens to many people at some point. A declined card could mean your bank detected suspicious activity and froze your account as a fraud prevention measure. Or it could simply mean you don’t have enough available credit or funds to cover the transaction. Don’t panic – there are usually some quick and easy ways to get your card working again.
Why is my card being declined?
There are several possible reasons your bank may decline a transaction when you try to use your credit or debit card:
- Insufficient funds – This is the most common reason. You don’t have enough money in your checking account to cover the transaction.
- Suspected fraud – If the bank sees abnormal spending patterns, they may freeze the card as a precaution.
- Expired card – Check the expiration date on your card. If it has passed, you’ll need to contact the bank for a replacement.
- Card issuer block – The bank may block transactions from certain merchants or categories if they suspect fraud.
- Damaged card – If the chip or magnetic stripe is damaged, stores may not be able to process payments.
- Credit limit exceeded – You can’t charge more than your approved credit limit on a credit card.
The most common reasons are insufficient funds and suspected fraud. Let’s look at each of these situations more closely.
Insufficient Funds
If you don’t have enough money in your account to cover a debit card transaction, it will be declined. Even if you have available funds, debit transactions will be declined if the amount exceeds your daily ATM withdrawal limit. This is usually around $300-$500.
Some tips to avoid insufficient funds declines:
- Check your balance frequently to know how much you have available to spend
- Keep a cushion in your account to avoid overdrafts
- Ask your bank to adjust your daily ATM withdrawal limit if needed
If you accidentally overspend, deposit funds or transfer money into your account as soon as possible to replenish the balance. You may be able to get the declined transaction approved by making another attempt after your account has sufficient funds.
Suspected Fraud
Banks use sophisticated fraud monitoring systems to watch for suspicious spending patterns. If your transaction seems abnormal based on factors like the merchant, location, or purchase amount, the bank may freeze the card as a protection against potential fraud.
Some common triggers for a fraud block include:
- Large purchase amounts you don’t normally spend
- Transactions in a new geographic area
- Purchases at merchants you’ve never shopped at before
- Back-to-back purchases in a short timeframe
- Transactions at high-risk merchants
If your card is frozen due to suspected fraud, you’ll need to contact your bank as soon as possible. They will verify your identity and recent transactions. Once confirmed as legitimate, they can remove the block so your card will work again.
How to Get Your Card Unblocked
Here are some steps to take if your credit or debit card is declined due to insufficient funds, suspected fraud, or another temporary block:
- Call your bank – The quickest way to identify and resolve the issue is to contact your bank or card issuer directly. They can check your account status and remove any blocks once verified.
- Ask about mobile alerts – Sign up for text or email alerts from your bank to be notified immediately anytime your card is declined in the future.
- Review transactions – Carefully review your recent transactions to identify any errors or fraudulent charges. Report any errors or suspicious activity to your bank right away.
- Update card info – If you have an expired card, request a replacement from your bank. Update the new card number on all your online/mobile payment apps.
- Add funds – If declined due to insufficient funds, deposit money or transfer funds into your account. Retrying the transaction once your balance is replenished often works.
In most cases, your bank can quickly resolve the problem by phone and get your card working again right away. Being proactive helps prevent future declines.
Tips to Avoid Declined Cards
While the occasional declined card happens to most people, there are ways to minimize how often it occurs:
- Track balances – Monitor your accounts frequently to know your available balances. Set up alerts for low balances.
- Have backup payment – Carry a secondary debit or credit card in case your primary card is declined.
- Know your limits – Be aware of your daily ATM withdrawal and credit limits. Plan large purchases carefully.
- Notify your bank – Alert them if you’ll be traveling or making large purchases out of your normal pattern.
- Split payments – For large purchases, consider splitting the transaction across multiple cards.
- Use credit vs. debit – Credit cards have more fraud protection. Use a debit card for ATMs and a credit card for purchases.
The key is closely monitoring your accounts and available balances at all times. Avoid overspending and address any erroneous declines quickly by contacting your bank. Being an informed and proactive consumer goes a long way towards minimizing declined cards.
What to Do at the Checkout When Your Card is Declined
That awkward moment when your card gets declined at the register is never fun. Here are some tips for handling it smoothly:
- Stay calm – It happens, don’t panic. Politely ask the cashier to try swiping again or check card balances.
- Try another card – Whip out a backup credit or debit card you carry for emergencies.
- Call your bank – Step aside and quickly call your bank to find out why the card was declined.
- Offer another form of payment – If you have no other cards available, most stores accept cash, check or mobile payments.
- Leave a contact – If leaving the store, give the cashier your name and phone number in case they need to verify the declined purchase later.
- Ask the merchant to run it again later – They can run your charge again after you’ve straightened out the issue with your bank.
Communication is key. Let the merchant know you’ll handle the declined card issue immediately with your bank. They’ll appreciate you not holding up the checkout line. And don’t forget to call your bank as soon as possible to get your card working again.
Impact on Credit Score
A declined credit or debit card will not directly affect your credit score. There is no direct reporting mechanism between merchants and credit bureaus when a card is declined.
However, the circumstances causing your decline could impact your credit if they lead to missed payments or other negative reporting:
- Missed loan payments due to insufficient funds
- Late fees or interest charges on credit cards
- Overdraft fees that put you in the negative
A one-time declined card will likely have zero credit impact. But ongoing issues managing cash flow and payments may eventually drag down your credit through late or missed payments.
Tips to Avoid Credit Score Damage
To keep declined cards from hurting your credit indirectly:
- Deposit funds quickly to cover payments before they are reported late
- Contact lenders and ask for extensions or waivers of late fees
- Avoid overdrafts by linking checking and savings accounts
- Set up account alerts to stay aware of balances and overdrafts
- Pay off cards frequently to keep credit utilization low
With proactive planning and diligent monitoring of accounts, the occasional declined card can be quickly addressed without dinging your credit score.
The Bottom Line
A declined debit or credit card can be an inconvenience and cause embarrassment, but it is not the end of the world. In most cases the bank is just doing its job protecting you against potential fraud or overdrafts.
Don’t panic – simply contact your bank to verify recent transactions and have any erroneous blocks removed. Carrying a backup payment method is wise just in case. While a one-time decline may be unavoidable, taking proactive precautions can minimize how often it happens.
The key is monitoring your accounts frequently, staying aware of balances and limits, and addressing any issues quickly to avoid escalation. With diligence and strong communication, you can get declined cards working again smoothly.