“I’m sorry. Your credit card has been declined,” is something you never want to hear. Depending on the situation, having your credit card be declined can be a very embarrassing experience, especially when you can’t think of a legitimate reason for your transaction not to go through.
Having your credit card declined doesn’t always mean you’ve done something wrong; sometimes credit card issuers decline certain transactions to protect you. Here are some possible reasons for your credit card to be declined.
If you notice your credit card is expired, check your recent mail to see if your card issuer has mailed a replacement. Many card issuers send a new credit card a few weeks before the old one expires. Your replacement credit card probably came in a plain envelope; you could easily have overlooked it. Contact your credit card issuer if you haven’t received a new card by the time your current on expires.
Card issuers cancel credit cards for a number of reasons, perhaps because you were delinquent on your payments or because you haven’t been using your card regularly. Your creditor doesn’t have to notify you that your credit card has been cancelled, unless it’s because of negative information on your credit report. Unfortunately, that means you may only find out when you try to use your credit card and it’s declined.
By law, credit card issuers aren’t allowed to let you exceed your credit limit unless you’ve explicitly stated that you want to be able to go over your credit limit. Even then, some card issuers simply won’t let you exceed your credit limit. Check your available credit before making purchases to confirm that you have enough to cover the transaction.
Note that when you’re purchasing gas and paying at the pump, some gas stations will preauthorize your credit card for as much as $200. If you don’t have enough available credit for the preauthorization, your transaction will be declined, even if your actual gas purchase will be less than that. In that case, you can prepay inside to avoid this preauthorization charge.
The number of data breaches and other types of credit card theft increases every year. While consumers aren’t held liable for many types of fraudulent transactions, these unauthorized charges cost credit card issuers millions of dollars. If you attempt to make a purchase that’s outside your normal spending habits, for example out of town or higher than you typically charge, your credit card issuer may decline the transaction as a preventative measure against fraud.
Warning: some scammers contact you by phone or email warning of fraud on your account, but they may actually be scammers trying to get account information from you. Don't give out any personal information over the phone on calls you didn't initiate.
Your credit card issuer may suspend your purchasing privileges if you’re behind on your payments. You’ll have to get caught up on your past due balance if you want to get back to using your credit card.
Reserving a hotel or renting a vehicle will result in a hold on part of your credit limit. The hold will be released after you’ve checked out of your room or returned the vehicle, but in the meantime, those funds will lower your available credit even though your credit card has not actually been charged. Because of that, any charges that exceed your available credit will be declined.
For online purchases, you have to enter all the information correctly or your credit card will be declined. Double check to make sure you’ve entered the correct account number, name, billing address, billing zip code, expiration date, and security code. Even a single letter or digit that’s misentered can lead to a decline.
Even some in-person transactions require you to enter your billing zip code to authorize your credit card. Be sure you use the correct one.
Note that your billing address is the one at which you receive your billing statements. It may not necessarily match your physical address.
When you’re sharing a credit card with another person, any action they take on the account may also affect you. For example, if they report their card lost or stolen, your credit card may be disabled as well. Or, if you’re an authorized user, the primary account holder can kick you off the account without warning.
Having your credit card declined doesn’t always mean you’ve done something wrong; sometimes credit card issuers decline certain transactions to protect you. Here are some possible reasons for your credit card to be declined.
1. It’s expired.
If you notice your credit card is expired, check your recent mail to see if your card issuer has mailed a replacement. Many card issuers send a new credit card a few weeks before the old one expires. Your replacement credit card probably came in a plain envelope; you could easily have overlooked it. Contact your credit card issuer if you haven’t received a new card by the time your current on expires.
2. It’s been cancelled.
Card issuers cancel credit cards for a number of reasons, perhaps because you were delinquent on your payments or because you haven’t been using your card regularly. Your creditor doesn’t have to notify you that your credit card has been cancelled, unless it’s because of negative information on your credit report. Unfortunately, that means you may only find out when you try to use your credit card and it’s declined.
3. The transaction exceeds your credit limit.
By law, credit card issuers aren’t allowed to let you exceed your credit limit unless you’ve explicitly stated that you want to be able to go over your credit limit. Even then, some card issuers simply won’t let you exceed your credit limit. Check your available credit before making purchases to confirm that you have enough to cover the transaction.
Note that when you’re purchasing gas and paying at the pump, some gas stations will preauthorize your credit card for as much as $200. If you don’t have enough available credit for the preauthorization, your transaction will be declined, even if your actual gas purchase will be less than that. In that case, you can prepay inside to avoid this preauthorization charge.
4. Your card issuer thinks there’s fraud.
The number of data breaches and other types of credit card theft increases every year. While consumers aren’t held liable for many types of fraudulent transactions, these unauthorized charges cost credit card issuers millions of dollars. If you attempt to make a purchase that’s outside your normal spending habits, for example out of town or higher than you typically charge, your credit card issuer may decline the transaction as a preventative measure against fraud.
Warning: some scammers contact you by phone or email warning of fraud on your account, but they may actually be scammers trying to get account information from you. Don't give out any personal information over the phone on calls you didn't initiate.
5. You’ve missed a payment or several.
Your credit card issuer may suspend your purchasing privileges if you’re behind on your payments. You’ll have to get caught up on your past due balance if you want to get back to using your credit card.
6. There’s a hold on a portion of your credit limit.
Reserving a hotel or renting a vehicle will result in a hold on part of your credit limit. The hold will be released after you’ve checked out of your room or returned the vehicle, but in the meantime, those funds will lower your available credit even though your credit card has not actually been charged. Because of that, any charges that exceed your available credit will be declined.
7. You misentered some information.
For online purchases, you have to enter all the information correctly or your credit card will be declined. Double check to make sure you’ve entered the correct account number, name, billing address, billing zip code, expiration date, and security code. Even a single letter or digit that’s misentered can lead to a decline.
Even some in-person transactions require you to enter your billing zip code to authorize your credit card. Be sure you use the correct one.
Note that your billing address is the one at which you receive your billing statements. It may not necessarily match your physical address.
8. The primary or joint account holder made some changes.
When you’re sharing a credit card with another person, any action they take on the account may also affect you. For example, if they report their card lost or stolen, your credit card may be disabled as well. Or, if you’re an authorized user, the primary account holder can kick you off the account without warning.