Have you had a perfect moment like a romantic date at a restaurant or a much awaited purchase at the mall ruined by the words, “Your credit card didn’t go through?” With an increased dependency on credit cards, it is important to know how things work so you don’t face an embarrassing situation. Here are a few reasons why your credit card can be declined and what you can do to avoid it.
Credit Limit:
This is the most common reason why your credit card might be declined. How much you spend on your credit card is restricted to the credit limit on your card, over shooting it will lead to unsuccessful transactions. Keep a track on your spending and pay your dues on time to avoid this situation. Be penny wise.
Incorrect Information:
If you mistype the credit card number, expiry date or the CVV number in a haste while shopping online, the transaction will be declined. Incorrect information doesn’t really freeze your credit card on the first attempt but numerous incorrect entries will block your card and you might have to contact your bank to unblock it. Be sure and secure.
Fraud Protection:
If you’ve used your credit card for mostly making bill payments and suddenly go on a shopping spree purchasing gold or expensive electronics, you credit card issuer may block your card as per their fraud protection program. This usually happens if there is major change in your spending pattern. It’s not like you can’t make these purchases, you can always buy what you intend to, but it’s advisable to keep your bank or credit card issuer informed during such shopping trips. Go ahead, indulge.
International Purchases:
If your credit card is not valid abroad, your international transactions will be declined. A quick call to your bank before your trip overseas and altering it to include international purchases can save the day. Bring home those memories.
Technology:
Credit cards these days are equipped with a pin and microchip for better security. You need to enter a pin to complete transactions using such cards. If a merchant where your card is being used is using an outdated point of sale (PoS) machine or you forget your PIN number, your transaction might be declined. Stay tech savvy.
Outdated Card:
A transaction might be declined if you use an outdated credit card to make purchases. Credit card issuers usually send a new card ahead your existing card expires. Activate the new card to avoid any problems. If you haven’t received it or if the new card is still in transit, make sure you check with the issuer at the earliest. Keep up with the times.
Currency:
If you have always made purchases in rupees and you use your credit card to buy a product or service in a foreign currency, there are chances your transaction will get declined as there is a change in your buying pattern. Giving the card issuer a heads up about such a purchase will solve this problem. Keep it simple.
Connectivity:
A transaction on your credit card can also be declined if the computer lines are down and there is an issue of connectivity at the merchants place due to exceptionally high volumes. Speak to the vendor, ask him to verify the issue and give you a timeline when the transactions can be processed. Smile, it’s not always your fault.
A few practical steps go a long way in avoiding embarrassing situations. Now that you are aware and well informed, what’s stopping you from applying for a credit card? We have plenty of offers for you to choose from!