5 possible scenarios when your credit card transaction could get declined

First Published 12, Sep 2017, 4:29 PM IST
5 possible scenarios when your credit card transaction could get declined
  • Credit cards have become a necessity for most of us as they give us financial freedom
  • To be a smart credit card user, you should have the know-how about the possible reasons behind a card decline

Our spending capacity is based on the monthly income we earn, and Credit Cards allows us to go beyond our spending capacity, for a while. Credit cards become our saviour when we need instant funds for impromptu shopping, tickets booking, eating out etc. So, it is quite obvious that such an important financial tool could give us some anxious and embarrassing moments whenever the card is declined during a transaction. Imagine going on a cozy family dinner and having the special moment spoiled by a declined credit card payment. You are booking flowers online for your loved one’s birthday as a surprise gift, and your credit card is blocked.

To be a smart credit card user, you should have the knowhow about the possible reasons behind a card decline. Here are some of the scenarios when your credit card can face a rejection.

Sudden Overseas Usage

Following a rise in the number of credit card frauds worldwide, banks today are offering higher security by mapping all your credit card transactions. In order to avoid being traced, fraudsters in the past have been stealing credit card information and using the same for various purchases online from a different country. As a precautionary measure, banks nowadays block any sudden overseas usage that they may see as doubtful. In such situation, it makes sense to inform your credit card company about your planned overseas trip.

Technical Glitch

Sometimes the credit card blockage may just be a temporary thing. Either the bank’ site may be undergoing any technical upgradation or there may be a technical error with your merchants PoS Machine. This credit card payment decline is a common occurrence on many online portals as well. Credit card decline during a technical glitch would be hard to trace if the fault is with the card issuing bank’s server or with the merchant’s bank. Usually, any such technical errors are automatically resolved in a short period of time. One good way to know if the card blockage is due to a technical fault is to see whether other card transactions are also being declined.

Non approval Of Updated Terms And Conditions

Banks may change the terms and conditions of using a credit card at any time. Usually banks intimate all card holders with mailers and messages about any new change in terms and conditions. If you have been constantly ignoring all communication from your bank, and have not given consent to the updated terms and conditions,your card could get blocked. The best way to avoid such a scenario is to always check all communication mails sent by your bank to keep yourself updated.

Unexpected Purchase

Any sudden unexpected purchase using your credit card that may not be in sync with your previous purchase history may be another reason for a preventive card blockage by the bank. The uncommon purchase is usually some very high credit card transaction or purchase which is much higher than the average purchase history. Such card blocks are preventive in nature and are put in place to safeguard any card related frauds.

Incorrect Information

Entering incorrect information like card PIN or CVV number repeatedly may also result in blockage of your card transaction. Try and summarise your card related PIN and CVV number to avoid any unwanted card blocks. Some credit cards that have been issued a while back may get their numbers erased owing to wear and tear. Make sure your card is aptly replaced once it gets old to avoid punching in of incorrect information.

A credit card transaction can be blocked due to multiple reasons. Be a proactive card user and take preventive measures to avoid such declines and make the best use of your cards.

BankBazaar is a leading online marketplace in India that helps consumers compare and apply for credit cards,personal loans,home loans,car loans and insurance.

The author is CEO of BankBazaar