Having your credit card declined can be a stressful experience, but it’s important to remember there could be several potential reasons behind it.
Let’s examine why a credit card decline can occur and discuss tips for preventing it from happening again in the future.
Common reasons your credit card might be declined
Anything from having insufficient credit to entering incorrect information can lead to your credit card being declined. Let’s take a closer look.
Insufficient credit
Every credit card has a credit limit that’s designated by the card issuer. It’s the amount of credit the bank has agreed to extend to you via your credit card.
If you have insufficient credit to cover a purchase, you’ve either maxed out your credit card up to its limit or your current purchase will max out your card. If your credit card is maxed out, all further charges will be declined until you resolve the issue.
To monitor your credit limit in the future, keep an eye on your spending and overall credit card balance. Check your balance regularly on the mobile app or website. It can also be helpful to set up account alerts that text or email you when a large purchase is made or suspicious charges appear.
Incorrect information entered
Entering your credit card information incorrectly, particularly online, can cause a card to be declined. A mistyped credit card number, billing address, CVV or expiration date can all prevent a payment from being processed.
If this happens, double check the credit card information you entered and try the transaction again. It’s also helpful to review all of the information you entered before submitting your purchase.
Suspicious activity or fraud alerts
Unusual charges or activity on your credit card may lead to other charges being declined due to fraud protection.
If you’ve been alerted by your credit card issuer about potential suspicious activity, reach out to confirm whether the purchases are legitimate. This should hopefully help resolve the situation and help allow you to use your card again.
Expired or inactive cards
All credit cards have an expiration date. It’s important to keep track of yours so that you can request a new card before the current one expires. Most card issuers will send you a replacement card when the expiration date is near, but staying on top of these details is still helpful.
There is usually a section of the card issuer’s website or app where you can request a replacement card. You can also give them a call at the customer service number. Activating a new card usually requires you to call and verify personal information.
What to do if your credit card is declined
There are several steps you can take to help confirm why your card was declined. Primarily, you’ll want to do the following:
- Contact customer support for clarification: Contact your credit card issuer. They can help clarify what happened and provide support and next steps for resolving the issue.
- Verify your account details: Whether logging into your online account or calling to speak with a bank representative, verify your account information, including credit card and personal information.
- Check available credit and transaction history: Look at your account and transaction history on the mobile app or bank website. Make a note of any suspicious activity, large charges or other details that could be the cause of a declined card.
How to prevent credit card declines
Here are simple ways you can help prevent your credit card from getting declined:
Monitor account activity
Regularly check your credit card balance and transaction history on your online account or use the mobile app for real-time monitoring and updates. Closely review your monthly credit card statements. Report any suspicious activity to your card issuer right away.
Update personal and payment information
Stay on top of your personal and payment information. Make sure your primary contact information (email, phone and home address) are all up-to-date online so that your card issuer can communicate with you. Be proactive about reviewing your account information and requesting replacement credit cards when they are nearing expiration.
Communicate with your issuer
If you plan on traveling, communicate with your card issuer so they don’t report your purchases as suspicious. This can happen if you use your card in a new place and your issuer thinks it could be due to fraud or theft.
When to consider an alternative payment method
If you can’t immediately resolve your card being declined and still need to make a purchase, consider using an alternative payment method, such as a debit card, digital wallets or cash. You could also consider carrying a second credit card to act as a second payment option.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
