Reasons Why Your Credit Card May Be Declined By a Merchant

A lot of individuals have started using credit cards for almost all their purchases in order to earn more and more rewards and benefits. No matter if they are making an online purchase or offline, they consider using their credit card for it, as credit cards are accepted by almost every merchant nowadays. But, sometimes, your credit card might have been declined by a merchant who accepts credit cards in general, and you don’t even understand the reason behind it. Many credit cardholders face such situations. If you also use a credit card, you need to be aware of all the possible reasons why your credit card may be declined by a merchant so that you don’t make any mistakes unknowingly. In this article, we will help you understand all the reasons why your credit card might not be accepted at online/offline stores sometimes:

You Have Reached Your Credit Limit

If you have spent your 100% credit limit, there is a chance that an online or in-store merchant will decline your credit card. This problem occurs when your card issuer doesn’t allow you to spend more than your credit limit. However, some card issuers allow you to do so, but you must be aware of the fact that you are charged an over-limit fee when you spend more than your credit limit, and it also affects your credit score badly. In order to maintain a good credit score and to keep your credit journey smooth, you should try spending not more than 30% of your total credit limit.

Your Card Has Expired

All the credit cards come with an expiry date. So, if a merchant is not accepting your card, you must check for the expiration date of your credit card. It is generally given on the front side of the card itself. If your card has expired, you will be allowed to make any transaction using it once you get your card renewed. Therefore, it is always advisable for you to keep another card or some cash so that you can use it in such situations.

You Have Entered a Wrong PIN

If you want to use your credit card for an online/in-store purchase and the card has been declined, you should always try once again and make sure that you enter all the credentials carefully this time. Sometimes, you unknowingly make a typing mistake and then you don’t understand why your payment is not successful. So, you should recheck your card number, CVV, PIN, and other information before you proceed further with the transaction.

You Have Disabled Selected Transactions Through Net Banking

The credit card internet banking facility allows you to manage your credit card, and you can enable or disable selected transactions according to your requirements. For example, if you have disabled the contactless payments option through internet banking, your card will not be accepted for contactless payments in any store. Moreover, even if you have enabled the option but the limit for contactless payments has been fixed at Rs. 5,000, your card will be declined for contactless payments for purchases that are worth more than Rs. 5,000. In such cases, you can either swipe your card at the merchant store instead of using the ‘Tap n Pay’ option, or you can enable the option through Internet banking and increase its limit. The same can be followed with international transactions. If you have disabled foreign currency transactions, you will not be able to make any international transactions until you enable the same through Internet banking.

Your Transaction Was Suspected of Fraud

If you make an unusual transaction that was never made earlier with your credit card, your card issuer may suspect this transaction is a fraud, and hence, the payment may be declined. For example, if you are making transactions from a very different place than usual or you are making a very big purchase, then your card issuer might block your credit card until they receive a confirmation from your side.

Your Account Has Been Closed Without Your Knowledge

Sometimes, your card issuer closes/cancels your account without informing you. There can be many reasons behind this, including a sudden drop in your credit score, your credit card being unused, you always spending beyond your limit, and more. If your credit card has been blocked or closed by your card issuer, it will not be accepted by any online or offline merchant. You can check for the same by contacting customer care using your credit card.

Bottom Line

Having a credit card is easy and a very common thing these days but only a few people are actually able to manage their credit card well. You should be aware of all the terms and conditions of your credit card and also make sure to enable/disable transactions according to your requirements so that you don’t face any such situation when a merchant may decline your credit card. Moreover, one of the most important things to keep in mind while using a credit card is to utilize your credit limit wisely and not use 100% of it. It will not only lead to trouble for you, but your credit score will also be affected badly. So, before purchasing anything using your credit card, make sure that you keep checking for all the above points so that you can make hassle-free transactions.

If you have any further questions about the topic, please don’t hesitate to let us know in the comment section below!