8 Reasons Your Credit Card Was Declined

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Key takeaways

Credit card transactions are declined for various reasons. You may have exceeded your limit, be using an expired card, or your issuer may suspect fraud.
To resolve the issue, contact your provider. You may need to verify transactions, make a payment, or update your account information.
Prevent future declines by setting up account alerts, tracking your spending, and notifying your issuer of travel plans.

Your credit card has been declined. Everyone knows the feeling. The situation is embarrassing, frustrating, and a massive hassle if you can’t sort it out fast.

Credit card rejections stem from a variety of issues. You may have reached your credit limit, or perhaps you’re a victim of fraud. It could simply be human error. Figuring out what happened is the first step. Next, you need to resolve the issue and prevent it from happening again.

Let’s start with eight common reasons why your card may be declined and what you can do about it.

Why was my credit card declined?

A credit card can be declined for several reasons. Some are under your control while others are protective measures providers have initiated to prevent fraudulent purchases. Here are eight common reasons to be aware of.

You hit your limit

Credit cards have limits. The limit is the amount you are allowed to spend. Once you reach your limit, you will not have any more available credit, and your transactions won’t go through. It’s true that some issuers allow you to exceed your limit, but they charge a fee for this service.

You can find your credit limit by reviewing your cardmember agreement or asking your issuer. Limits range from $500 to $20,000. Your limit will depend on your credit score, income, and other factors determined by your issuer.

Credit limits don’t stay the same. Your issuer may raise your limit if you get a higher-paying job or continuously make on-time payments. They may reduce it if your score drops or you have a lot of missed payments. They must give you 45 days’ notice before making changes.

The best thing you can do is to keep track of your spending. Overspending leads to declined transactions and hurts your credit score.

Try to keep your balance below 30% of your limit. A lower credit utilization ratio – the amount you’ve spent vs. your limit – leads to a higher score.

If you’re getting close to your maximum amount, pay down your credit card balance before you spend more.

Your issuer suspects fraud

Credit card fraud is common. It’s in companies best interest to prevent it and keep your money safe. Therefore, providers monitor your accounts for fraudulent activity. They will flag any transactions outside of ordinary spending habits and freeze your card. Suspicious activity could be an unusually large purchase, multiple identical charges, or a spending spree.

As companies get more cautious, plenty of legitimate purchases trigger fraud alerts. It’s easy to clear up the misunderstanding. Call your provider and verify that you made the purchase.

You made a typo

Credit card declines can be the result of human error. When you purchase online or via a mobile app, you have a lot of data to enter. There’s the account number, expiration date, security code, zip code, shipping address, and billing address. There are lots of opportunities to enter a digit incorrectly.

If you receive a transaction declined notification, double-check that your card details are correct. Make sure your billing address is up to date. Too many mistakes can trigger a fraud alert and freeze your account.

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Your card has a large hold on it

Certain businesses place holds on your account. The hold will appear as a purchase charge. It ensures you have enough available credit to pay when the merchant calculates your final bill.

Hotels and car rental companies do this because they do not charge you upfront. Say you order room service. The hold lets the hotel easily tack on an extra $50 to your bill. If you forget to fill up the tank, the car rental company can charge you for the gas. The hold is their security that you will have the means to pay all you owe.

The merchant will release the hold when you pay your final bill. If you pay your bill with a different card, the hold may remain for up to 14 days.

It’s a good idea to have multiple ways to pay. Use one credit card to book the room and another for daily spending so that the hold isn’t a big concern.

Your credit card is expired

Credit cards have expiration dates. You can find the month and year listed on your card. Once you reach that date, it’s no longer a valid form of payment.

You should receive a replacement card in the mail three to six months before your old one expires. Activate your new card as soon as you get it. You can do so online or by calling your provider. Then, cut up and throw away the expired one.

If you have not received a replacement, call your issuer. It could have been lost in the mail, or your address is incorrect.

Your account was closed

Credit card companies are allowed to close your account without telling you. They may do this if you haven’t used your card in a long time or if you’ve missed multiple payments.

Check with your issuer if you suspect this was the case.

If your account was closed due to missed payments, make a plan to catch up.

You’re traveling

Paying by credit in a different state or country may trigger a fraud alert. Your card issuer will reject the purchase and lock your account to prevent future transactions from going through. Who’s to say that you bought croissants in Paris and not the thief who stole your information?

Whenever you plan a trip, set travel notifications via the app or by giving your provider a call.

It’s always a good idea to carry alternative payment methods – cash or credit from a different card network. Many foreign merchants won’t accept Discover or American Express but will take Visa or Mastercard. It’s smart to have one in your wallet, especially one with no foreign transaction fees.

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You’ve missed a lot of payments

When you have a lot of late or missed payments, your issuer may put a hold on your account. The hold will prevent transactions from going through until you make a payment.

Late or missed payments not only lead to declined transactions but can wreak havoc on your credit score. Payment history makes up 35% of your score. One late payment can stay on your credit report for up to seven years.

Consider setting up autopay for at least the minimum payment. That way, you no longer have to worry about paying your bill on time. Or put a reminder in your calendar so due dates don’t slip by unnoticed.

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What you can do if your credit card is declined

A declined credit card is frustrating and inconvenient. Before you start worrying, try again. If you’re making an online purchase, double-check the information you entered. If you’re in a store, ask the merchant to run the card a second time. The card reader may be faulty.

If the transaction is still declined, you’ll need another way to pay. Always carry cash, a debit card, or another credit card with you.

The next step is to determine the problem. Call the number on the back of your card to speak to a customer service representative. They can explain the specifics of the decline and how to correct it. If the decline was due to a fraud alert, you may have to verify purchases to prove you’re the account holder. If you’ve hit the limit, you’ll need to pay down your balance.

The representative can help guide you through the process and get your card working again.

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How to prevent your credit card from being declined

Sign up for account alerts: Most providers let you sign up for text or email alerts. These alerts can be for any suspicious activity, spending over a certain amount, balance notifications, and due date reminders. The entire purpose is to help you manage your account better.

Pay your bills on time: Always pay your credit card bills on time and in full every month. If you make too many late payments, your issuer may freeze your account. Consider setting up autopay or putting reminders in your calendar so you don’t forget a due date.

Stay well below your limit: You already know you can’t max out your card, but you shouldn’t get anywhere near your limit. Aim to keep your credit utilization rate below 30%. Watch your balance and make a plan to pay it off.

Update your contact information: Ensure your billing address, phone number, and email are current. Incorrect details can result in transactions being flagged or declined. Update your account promptly whenever you move.

Tell your issuer about travel plans: Before traveling, let your provider know your plans. Call them or set travel dates on their mobile app. Then, you can use your card for purchases abroad.

Frequently asked questions

1. Why is my credit card declined when I have money?

Unlike your debit card, your credit card is not directly tied to your bank account. Your issuer cannot tell whether or not you have sufficient funds. Your debit card may be declined due to insufficient funds. A credit card transaction may be rejected due to maxing out your limit, suspected fraud, or an inactive account. Call your issuer to clarify the problem and resolve it.

2. What happens if a credit card was declined but still charged?

If your credit card is declined but you see a charge, it is most likely a pending authorization hold. This temporary charge will drop off in a few days. It will not be posted to your account. If the charge posts, contact the merchant or your provider to dispute it.

3. How do I fix a declined credit card?

First, verify you haven’t exceeded your limit, check that the card isn’t expired, and look for any holds. Call your issuer for assistance if you don’t find anything. They can help if the issue is suspected fraud or let you know if they closed down your account.

Bottom line

Credit card declines are common. No one can entirely avoid the inconvenience, but there are things you can do to prevent it. Set up alerts, track your spending to stay under your limit, and notify your provider of any travel plans.

One big thing you can do is monitor your credit. Credit monitoring helps you detect potential fraud and identity theft early on. You can resolve the issue before your transaction is declined due to suspicious activity.

Declined credit cards are no fun, but they can usually be easily dealt with.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card issued by Choice Financial Group, and the Current Visa® secured charge card issued by Cross River Bank, are both pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

2. Debit card: Fees may apply, including out of network cash withdrawal fees, third-party fees, cash load fees, inactivity fees, account closure fees, international transaction fees, replacement card fees, express mail fees and escheatment fees. Build Card: Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

3. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

4. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

5. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

6. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC.

7. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank.

8. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

9. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Eligible Direct Deposits into your Current Account over the preceding 35-day period and fulfill other requirements subject to Current’s discretion. Negative balances must be repaid within 60 days of the first Eligible Transaction that caused the negative balance. For more information, please refer to Fee-free Overdraft Terms and Conditions. Individual Current Accounts only.

10. For eligible customers only. You may earn Points in connection with your Build Card purchases at retailers whose merchant code is classified as: Dining (e.g., restaurants) and Groceries (e.g., supermarkets) and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. Points will expire 365 days after they settle. For more information (including specific eligibility criteria), please refer to the Current Points Terms and Condition.

11. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

12. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. No minimum balance required. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. To earn a Boost rate of 4.00%, the sum of your Eligible Payroll Deposits over a rolling 35-day period must be $500 or more, with at least one Eligible Payroll Deposit equalling a minimum of $200. For more information, please refer to Current Boost Terms and Conditions.

13. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

14. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

15. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

16. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

17. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

18. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

19. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

20. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

21. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

22. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

23. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

24. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

25. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

26. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

27. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

28. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

29. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

30. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

31. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

32. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

33. Tipping or not tipping has no impact on your eligibility for SpotMe®.

34. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

35. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

36. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

37. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

38. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

39. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

* EarnIn is not available for Connecticut residents

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

Why Was My Credit Card Declined? 8 Possible Reasons

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