Declined Credit Card: What are the Primary Reasons for it

Did you swipe your credit card at your favourite store and get the decline message? There are several factors that cause your transaction to fail. 

Reasons can include exceeding your card limit, entering incorrect details, system glitches, or making transactions that are larger than normal, such as ₹2,00,000.

Read this blog to explore the primary causes behind a declined credit card and ensure hassle-free transactions every time.

7 Reasons Your Credit Card is Declined

1. Exceeded Your Spending Limit

Suppose your credit card limit is ₹2,00,000 and you have already utilised a balance of ₹1,80,000. Now, if you try to spend ₹23,000, the purchase will be declined. The reason is that you have tried to exceed your credit limit. 

2. Flagged for Suspicious Transaction

If you are swiping your credit card to buy something unusual (not typically aligned with your spending habits), you may get a notification 'card declined'. The instances can be purchasing something that requires a larger amount. 

3. Missed Payments

If you miss a payment, even for one time, your credit card transaction may get declined. In such cases, settle the amount as soon as possible. 

4. Wrong Payment Information Entered

Mistakes can happen, especially when shopping online through portals or via mobile apps. This can be a reason behind your credit card being declined. Check whether you entered the credit card number, billing address, CVV or expiration date incorrectly.

5. No Acceptance

Not every brand or store has a partnership with your bank or the financial institution that issued your credit card. So, you should not assume that every store (whether online or offline) will accept it. In such cases, try using another credit card or paying in cash.

6. Malfunction in the Payment System

If your card was declined while making a payment, it could be due to a system fault. The reason behind a declined credit card can be an outdated interface that blocks the reader from scanning the card properly or other technical issues.

7. Inactive or Expired Credit Card

It can also happen if the card has not been activated yet. On the other hand, if you use a card that has already expired without your knowledge, the same issue can arise. 

What Should You Do If Your Credit Card is Declined?

1. Try again, especially if the reason for the credit card decline is entering the wrong information. 
2. If your second attempt also fails, you should use an alternative payment method like cash, a UPI transaction, a debit card, or even another credit card. 
3. Do not forget to contact your card issuer to know the actual reason. 

Sometimes, a declined credit card may be the result of fraudulent activity. The issuer may detect some issues and stop the transaction. In such cases, the card issuer notifies you via a phone call, text message, or email.

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