Reasons Your Credit Card Was Rejected and How To Overcome It

Having your credit card “declined” at the cash register is the most embarrassing financial problem. Blocking the queue at the checkout or losing the opportunity to get a 40% discount at an online store is a financial event that makes the whole day uncomfortable.

Outside of insufficient funds on your credit or debit card, there are a number of reasons why your card is declined. The following are some of the reasons and more importantly,

Late Paying Bills

Late Paying Bills

Depending on the terms and conditions of your card, the card issuer has the right to deactivate your card even if you are only late paying bills. Some retailers, such as gas station chains or clothing stores, issue cards that ask you to pay all bills on time so that you can continue to use your card in the next period.

Call customer service and ask how much you need to pay to get your card reactivated. If you have a good payment history with the card issuer or have strong reasons for late payment, such as medical emergencies, ask for a declaration free of charges for late payment fees.

Prevent late payments in the future by scheduling regular payments through your bank account for at least the minimum monthly payment.

Amount of Funds Withheld

When you use a card to buy gas, rent a car, or book a hotel room, there are a number of funds withheld to guarantee that you have sufficient funds to make payments. For example, you only want to charge USD. 30,000 of gasoline, but the electronic swipe automatically holds USD. 125,000 on your card.

If you only have funds remaining on the USD 50,000 card, your card can be declined for USD 30,000 purchase. The time to return a hold of this fund differs from one card issuer to another, which means you could be inadvertently considered spending more than the available funds.

The key is to prevent funds from being held. At the gas station, pay with a debit card at the cashier before buying. When planning to use a debit card at a hotel or car rental place, ask first how much funds are withheld so that you can budget appropriately. Also, ask if the company might accept a cash deposit. This way your money can be returned immediately rather than waiting for a return from the old card.

Waiting for the money to be transferred


Three workdays is a greeting that we often hear in the business world. This is not a long time. But the problem is that when it comes to payments and repayments that are due, this can result in late payments.

Financial institutions have different policies in handling funds and the transfer process. For example, a bank account immediately transfers funds as soon as the transfer order is made, but another bank account holds funds for 24 hours and the next day new funds are transferred after working hours are finished.

Determine and know the time of transfer from the bank or card issuer. Or if you know that payment must be made now, contact customer service and ask them to see it now.

Using the Chip Card the Wrong Way

It takes time to get used to a new chip card. Some chip card readers will not accept your debit or credit chip cards when you try to swipe a magnetic strip. Also, removing the chip card before a command appears on the screen can result in your card being declined. However, the benefits of chip cards outweigh this minor inconvenience.

Try to process the payment again. Insert the card and follow the instructions on the screen.

Triggering the Active Card Fraud Protection

Triggering the Active Card Fraud Protection

Responding to the increasingly widespread card fraud, many publishers pay attention to purchases that occur outside a fixed pattern. For example, you are accustomed to paying for goods from abroad via PayPal. One time, you paid directly through the card.

Your payment was declined and you received a warning via SMS. Another thing that can trigger active card fraud protection is that you travel abroad without notifying the card issuer.

Register your card to receive notifications via SMS so you can know that you are conducting a transaction. When traveling abroad, inform the card issuer of your plans to go abroad.

Forget the Annual Fee

You remember very well that you still have the remaining USD. 1 million on your credit card, so why was your card declined? You might forget that there are annual fees. This annual fee can reach USD. 300 thousand. If your card is nearing the limit, you run the risk of not having enough funds when an annual fee is charged.

There is no choice but to pay this fee. In the future, make a reminder a month before the annual fee is charged so you can pay it before the fee is charged. Review the terms and conditions of your card and keep an eye on other fees that can burden your card.

Additional Cards Disabled

If you are an additional cardholder, you can use the card as long as the card owner allows. If your spouse, family member, relative, or friend entrusts you with an additional card, respect the rules they make. Communication is the key. If not, you will be terminated.

Contact the owner of the primary card and ask to have your card reactivated. Be calm, polite, and be prepared to apologize if you make a mistake.

Always Bring Cash

For those of you who really prefer to make payments with a credit card, of course, unconsciously make a credit card needs as a primary payment tool. However, it is better to bring spare money in the event of an emergency such as a declined credit card or a lost credit card.

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