4 Reasons Your Credit Card Could Get Declined — and How to Fix Them

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It’s frustrating when your credit card gets declined. Find out why this can happen and what you can do to fix it. [[{“value”:”

Does anyone else get weirdly embarrassed when their credit card is declined? I always feel as if I wasted the cashier’s time, even though it takes two seconds for them to redo the transaction so I can pay with a different card.

Declined transactions happen from time to time. And despite the embarrassment they can cause, they aren’t a big deal. But it’s good to know why credit cards get declined and how you can fix this when it happens to you.

1. The transaction tripped your card issuer’s fraud detection

Every credit card issuer has internal systems designed to prevent fraud. They don’t want to lose money, and they don’t want their cardholders to lose money.

One of the ways card issuers prevent fraud is by flagging suspicious transactions. For example, if all your purchases have been for less than $300, your card issuer would take notice if there was suddenly an attempted purchase of $5,000.

If an attempted purchase trips your card issuer’s fraud detection, it will likely notify you by text or email. It may also reject the transaction as a security measure. To fix this, contact your card issuer, verify your identity, and confirm that it’s you who’s attempting to make the purchase.

2. You’re trying to use your card abroad

Using your card abroad often falls under the “suspicious transactions” category. Your card issuer doesn’t know whether it’s you or an international crime syndicate.

Some card issuers let you set up travel alerts. You notify them about where you’ll be going and when. That way, it doesn’t look sketchy when you use your card halfway around the world.

Not all card issuers offer travel alerts, though. Some say it’s not necessary, as they use big data to determine which transactions are valid and which transactions aren’t. Whether or not you set up a travel alert, you can always contact your card issuer if a purchase you’re attempting is getting declined.

There’s one other thing to watch out for when traveling abroad: foreign transaction fees. Many credit cards charge an extra 3% every time you use them outside the United States. Instead of paying extra, explore our list of travel credit cards with no foreign transaction fees (and other valuable travel perks).

3. You forgot to activate your card

When you get your credit card in the mail, you may need to activate it. You don’t always need to do this — some cards now arrive already activated. But many still require activation first, which you can do online or by phone. If it’s required, it will say so in the letter you receive with your card.

If activating your new card slipped your mind, then it will most likely be declined when you try to use it. Once you get it activated, you shouldn’t have any more issues using it.

4. The transaction would exceed your card’s credit limit

Credit cards have credit limits, which are the maximum balance they can have. You can find this information in your online account, and it’s listed on the letter that comes with your card in the mail.

Card issuers normally deny transactions that would push a card’s balance over its credit limit. For example, if your card has an $800 balance and a $1,000 credit limit, you wouldn’t be able to make a $400 purchase. You’d need to pay down the balance first or ask your card issuer for a higher credit limit.

Looking for a credit card with more spending power? Check out our curated list of high limit credit cards. These cards are known for giving out high credit limits. Note that your income and creditworthiness are also important factors in the credit limit you receive.

Card issuers can reject transactions for all kinds of reasons, but in most cases, it’s due to one of the issues above. When in doubt, contact your card issuer, and you should be able to get to the bottom of it.

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