Picture the scene: you’re at the checkout, ready to pay with your credit card, when you hear the words "I’m sorry, there seems to be a problem with your card." But why?
It’s everyone’s worst nightmare; your goods have been scanned and totted up, but when you come to make payment, your card is turned down. The situation might be even worse if you have hundreds of pounds of groceries to pay for and a queue of disgruntled shoppers waiting behind you.
However, there are any number of reasons your credit card might be turned down at the point of sale, and it doesn’t always mean you’re in trouble with your credit card company.
Why was my credit card declined?
1. There's a technical problem
As wonderful as technology is, it sometimes fails us at the most inopportune times. It could well be that the card machine is having problems processing your card – the cashier may mention that it’s been having problems processing a particular type of credit card all day.
Or, it may be a problem with your credit card provider itself; perhaps a connection between the card machine operator and the card provider can’t be established.
2. Your card hasn't been activated
If you’re using a new card you may not have got round to ‘activating’ it yet. This usually involves contacting the credit card company upon receipt of your new card and answering a few security questions, after which you’ll be given the go-ahead to start using it. Until you have done this however the card can’t be used for any type of transaction.
3.Your card is past its expiry date
All credit cards come with an expiry date just like debit cards. If your card is past this date you’ll no longer be able to use it for anything, and should have received a new card in the post well before this expiry date.
4. Your card provider suspects fraud
Credit card providers are becoming more and more security-conscious, which can only be a good thing; however in some cases it may mean they freeze your account on the suspicion that your card has been stolen, when in actuality you’re just using your card in what they might class as an ‘unusual’ way.
For example if your card was last recorded being used in London and then a day later is being used to buy cocktails in Bermuda, your credit card provider may automatically freeze your account for your own safety – which is why you should always inform your credit/debit card provider of where you’re going before you go on holiday.
5. You've maxed out your card
It may simply be that you’re too near your credit limit to cover the purchase you’re trying to make, and don’t have the funds available on the card. If this is the case then your card provider may decline the request for funds.
6. You've missed a payment
If you’ve failed to make payments on time to your credit card or broken the card rules in some other way, it’s possible that your card provider will freeze your credit card use temporarily.
What should I do?
First of all, don’t panic. The most likely reason for your credit card being turned down is that there is a technical problem with the card machine. As such, unless you can think of an obvious reason why it isn’t going through such as you don’t have enough available credit balance on the card, ask the cashier to try putting the sale through again on that card.
This won’t mean that you are charged twice because the first sale will have been cancelled before it has got to the point of charging you the money. The cashier will give you a receipt from the first attempt which will say ‘sale void’ or words to that effect. Make sure you keep this safe for your records.
If your card fails a second time, look to other forms of payment to complete the sale. For example, it may be that you (or a helpful friend you might have with you) have enough cash to cover the purchase – otherwise, try another debit or credit card if you have one. If it’s a small purchase you may be able to ask the cashier to hold it for you while you and go and withdraw the necessary cash. If you really can’t pay in any other way, simply walk away from the purchase.
Unless the problem did turn out to be technical and your card went through fine on the second attempt, it’s vital now that you contact your credit card provider. Explain the situation and they may be able to provide you with a simple explanation such as freezing your card due to suspected fraudulent use, in which case you can confirm to them that your card has not been stolen.
If the reason your card was turned down was because you didn’t have the necessary credit available, you’ll need to concentrate on clearing that balance so that you can still use the card in the future.
Otherwise, if you are still concerned about your credit card being turned down, you should check your credit report to make double-sure that there aren’t any abnormal entries. If there are, either contact the credit rating agency to get them corrected or take steps to resolve the situation if you think you might be the victim of identity fraud.
