Why Was My Debit Card Declined
Thereâre a couple options available to find out the specific reason why your card declined.
- Sign up for the account alert for declined transactions. Because the alert is customized to you, we can send an email or text to tell you the specific reason why the card declined.
- Ask our Smart Assistant. Here, the assistant will review your account and tell you the specific reason for the decline.
Please be aware if any of the following circumstances apply, your card can also decline.
- The card isnât activated.
- Attempts to exceed your daily transaction amount.
- Lack of available funds.
- Expired card information is being used.
- Possible magnetic strip damage .
- PIN was entered incorrectly.
- Transactions originating in the following countries due to current sanctions. This is because we’re required to restrict access or transactions in a sanctioned country.
No Other Payment Option
It happens. Sometimes you leave the house with only your ID and a credit card. If you find yourself in this situation, weigh your options. Can a friend cover you? Can you leave your purchase, run home and come back later? In many cases a grocery store will hold your order, although you may need to put the ice cream back before it melts.
If these are not an option, speak calmly with the merchant about your options. Depending on the size of your purchase they may take your information or hold your ID and allow you to pay later. Make sure you are comfortable with the reputation of the establishment before leaving your ID.
What You Need To Know
- A declined credit card transaction means that something went wrong while your purchase was being processed and that the purchase couldnt be completed
- Your credit card may be declined for many reasons, including atypical activity, incorrectly entered information, or because youve reached your credit limit
- If your card was declined because its flagged for fraud, your card issuer is already acting to protect you
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Incorrect Card Number Entered
With most in-person debit card transactions, you can either swipe or tap your physical card at a sales register. But when you have to enter your credit card number, you add the chance of human error into the mix.
Debit card numbers are long, so its easy to get a number mixed up here and there. If your debit card is declined, double-check your entry to ensure that you got all the numbers entered and in the correct order.
Store Doesnt Accept Your Card Type
This one isnt as common these days, especially if youre using a major card type like Visa, Maestro or MasterCard, but there is a possibility that the card youre trying to use isnt accepted at the store youre trying to buy from.
This can definitely be an issue if you have an American Express card, for example. If thats the situation, the only solution is to use another card or cash, unfortunately.
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What Is A Debit Card
For starters, lets remember how debit cards work: you swipe the magnetic strip at a point-of-sale terminal and enter your PIN number to authorize a purchase.
This is different from using your credit card, which means that youll be paying for the things you buy with money taken out of your bank account rather than getting a line of credit.
The funds are then transferred directly between you and the merchant, so its best to use a debit card only when you know that you have enough money in your account to cover the transaction.
Waiting On A Deposit Or Transfer To Clear
It’s just like that joke from Kevin Hart: “You see, the way I got my bank account set up, I got a checking and a savings, but all my money is in my savings, so I gotta switch it to my checking, but it’s gonna take three business days… I don’t think it’s gonna go through.”
Financial institutions have different holding periods on deposits and account transfers. For example, my credit union makes check deposits and transfers from one account to another available immediately, but my wife’s bank puts a 24-hour hold on check deposits and a next-business day hold on account transfers done after business hours.
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How To Help Prevent Your Card From Getting Declined
You can take a few simple steps to help manage your credit card accounts and avoid getting declined when trying to make a purchase.
There are no guarantees against your card being turned down. Even if you manage your account perfectly, your issuer might make a mistake or block legitimate purchases in an attempt to prevent fraud. But by proactively monitoring your account and your credit, you can reduce your chances of being declined.
Common Reasons That May Cause Your Transaction To Be Declined
Your Credit Card has not been activated for use
- Please note that if your credit card is newly approved or recently replaced, you will need to activate it before usage.
- Click here to find out how you may activate your credit card.
Insufficient available credit limit
- Pay your balance to clear up some of your available credit limit
- Increase your credit limit by making an advance payment into your card
You entered an incorrect card expiry date and CVC / CVV number
- Your Card expiry date is located below your Debit/Credit Card number under Valid Thru.
- Your Card CVC / CVV number is a 3-digit number located at the back of your Debit/Credit Card below the magnetic stripe.
- For payment related issues, you can contact us at 6227 6864, between Monday to Friday, 9am to 5pm.
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Why Has My Card Declined
When your card gets declined, it doesnt always necessarily mean its your fault. However, in order to resolve this issue, you need to pinpoint why it declined in the first place.
Without figuring out why the card declined, you will not be able to use your card for any other transactions. One way to figure out why it got declined is by calling your bank so they can outline what the issue is for you.
What Is A Credit Card Decline
A credit card decline occurs if, for a particular reason, a credit card payment cannot be processed and the transaction is declined by the payment gateway, the processor, or the bank issuing the money. Its a common problem faced by businesses that process recurring payments.
There could be a variety of reasons for this. According to Visa and Mastercard, an average of 15% of recurring payments are declined, but for some industries, the rate can be double that.
For a better purview of how credit card payments are processed online, check out this piece on payment gateways the machines of the web.
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You Met Your Credit Limit
Maxing out your credit card, or reaching your cards credit limit, is a surefire way to have your card denied.
Your is the amount of credit your issuer agrees to extend to you and can be found in your cardmember agreement or by contacting your issuer. Cards for people who are new to using credit or who have poor credit may have low credit limits of $500 or lesswhile individuals with excellent credit may have credit limits close to $20,000.
If your credit card purchase exceeds your credit limit, your purchase may be denied. You should know the credit limit and keep track of balances for each of your credit cards so you arent blindsided by reaching the limit before your monthly statement period ends. If you find yourself close to the limit regularly, contact your issuer to request a higher credit limit so you have more of a spending cushion.
In order to keep your credit score in good standing, its smart to keep your below 30 percent. In other words, keep your balances below 30 percent of your overall limit. If youve reached your limit, work on a plan to begin paying down your debt before attempting to spend more. Consider transferring your balance to another card with a low or 0 percent interest rate or take on a lower interest personal loan. To quickly determine your current ratio, check out Bankrates credit utilization ratio calculator.
Debit Card Decline Codes
Many debit card decline codes can notify banks and retailers why the debit card transaction has been declined. For example, Visa debit card decline codes can range from a specific reason like insufficient funds or account not recognized by bank up to a more vague explanation of why the debit card transaction was declined, such as card security code violation.
Visa debit card decline codes can also be accompanied with information about the type of problem that took place, including whether it came from a specific retailer or the financial institution .
When your bank declines your Visa debit card, they will notify you through virtual messages , as well as through paper documents.
Visa debit card decline codes are different from Visa provisioning service decline codes.
Many debit card decline codes can be used, and each of them notifies different parties involved in the transaction about why the debit card was declined. For example, Visa uses debit card decline codes for fraud prevention or incorrect PIN number entry.
There are other options if you find yourself in this situation such as shopping at stores that accept afterpay so you wont need your debit card.
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How Does A Debit Card Work
Debit cards allow consumers to spend money with the ease of using a credit card. All the major credit card companies back virtually all debit cards. If your debit card has either a Visa, MasterCard, American Express, or DiscoverCard logo, it is good wherever those credit cards are accepted. Virtually all debit cards look like the credit cards that back them. Additionally, there are debit cards that can fit on your keychain as a little plastic fob. In recent years, debit cards have also become available in digital form so that you can access them on a phone or mobile device.
A debit card also acts as an ATM card, so when you need actual cash, you can access it from almost any machine on the planet. Depending on the store youre in, you can also pull cash from your account while youre using your debit card during another purchase.
Card Type Is Not Accepted
Speaking of card issuers, they may be another one of the reasons why your debit card gets declined. If you have a Costco membership, you probably know that they only accept Visa credit cards or any kind of debit card. It is most often a card that gets declined on this basis. For instance, some merchants will not accept American Express because it charges a larger percentage than its competitors.
Still, this can happen with a debit card, especially if it is mistakenly run as credit. So when you use your debit card at an institution that does not accept a certain credit card issuer, be sure that they are running your card as debit and that you enter your PIN.
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Can Someone Steal And Use My Debit Card
If your debit card requires a pin, then it is unlikely. But if its enabled for contactless payments, then yes this is a possibility.
I have personal experience with this and only discovered the transactions when I logged on to my banks mobile app.
As it turns out, my tenants teenage daughter had open the envelope that contained my new debit card that was sent to my old address and used my card to spend small amounts at Burger King.
As she had used Paywave, there was no pin required and the transactions were approved.
There Are Insufficient Funds In Your Bank Account
If you are lacking enough money in your checking account to cover a purchase, most debit cards will decline the transaction and inform the retailer that there isnt enough money to go through. Knowing bank direct deposit times can help avoid this situation.
Similarly, if someone tries to use a debit card with an expired date or an invalid expiration date, then the issuer may refuse all transactions on that card until it has been replaced with a valid one again.
Some banks send out PIN resets by text message, but its best to call them and let them know about a new phone number for you so they can contact you more efficiently if problems arise regarding your debit card.
You may also have insufficient funds if your proportion of loan balances to loan amounts is too high which could also be an issue for your bank debit card.
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Using A Chip Card The Wrong Way
Getting used to your new chip card may take time. Some chip-enabled card readers won’t accept your chip debit or credit card when you try to swipe the magnetic stripe. Also, removing your chip card before receiving the on-screen prompt to do so can result in your payment being declined. Still, the benefits of chip cards far outweigh these potential little inconveniences.
Reasons Why Your Debit Card Was Declined
Its not just insufficient funds that results in your debit card being declined
Having your debit card declined happens to the best of us, and when youre in that situation it can be a bit awkward and stressful. There are several reasons why your Mastercard® debit card may be declined, and its a good idea to be aware of why and what you can do to avoid it.
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Pin Entered Incorrectly Too Many Times
Your card will be declined if you enter your PIN too many times which is often a sign of thieves trying to guess your PIN number.
For this reason, some banks limit the number of times you can incorrectly enter your PIN. As an example, you may need to enter your PIN only three times before the card will be declined.
You Reached Your Daily Spending Limit
Some cards may only allow a certain amount of money or the number of transactions approved each day. There are many reasons that banks institute a daily spending limit, so talk with your bank to see if your accounts limits can be adjusted. At the very least, you may get a one-time exception if you contact your bank ahead of time.
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All In All Reasons Why My Debit Card Declined
There are a lot of reasons why your debit card may decline, most of which can be resolved immediately.
When youre out shopping, be sure to bring a credit card to the rescue when youre in line and your debit card keeps on declining. That will reduce the stress at any given moment!
It sucks when your debit card declines. Embrace the suck and go looking for solutions. Chances are that its resolved within minutes!
Did you ever have your debit card declined? Let me know below in the comments!
Youve Entered The Wrong Pin
How to avoid it:
Memorize your PIN and try not to confuse the cards if you have more than one account with a linked debit card. Its never suggested that you write the PIN on the card or keep it in your wallet. This will make it easier for a thief to access your account if your wallet or purse is stolen. If youve forgotten your PIN or are locked out of your account because youve entered the wrong number too many times call your bank to have it reset.
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You Reached Your Credit Limit
Your card can be declined if youve hit the cards credit limit, or the upper threshold of charges you can put on the card. Its your banks way of saying you cannot borrow any more money until you make a payment.
Lets say you have a $4,000 credit limit, your balance is $3,500, and youre trying to put $1,000 worth of things on there theyre not going to allow that to go through a lot of the time, says Anna NJie-Konte, a certified financial planner and founder of Dare to Dream Financial Planning.
Maxing out your credit card hinders your ability to make purchases, but its also not good for your credit score and can lead to long-term debt. Plus, reaching your credit limit is detrimental to your the ratio of your credit card balances to your overall limit heavily influences your credit score. Youll increase your odds of having a good credit score if you dont exceed 30% of the available credit on your cards, and ideally keep your utilization below 10%. Generally the less credit you use, the better it is for your credit score.
You may be more likely to max out your card if you carry a balance since youre adding charges on top of the balance you already have, which also affects your utilization all the more reason to pay your bills in full every month.
How To Fix Your Debit Card Issue
Transfer money to the correct bank account so enough money is in your account to keep you from overdrawing.
Keep in mind you might have to pay an overdraft fee or overdraft transfer fee depending on where you bank. If your account balance has been overdrawn for less than 24 hours, you might be able to get an overdraft refund even if you don’t have overdraft protection.
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