Reasons your credit card can be rejected
When standing at a point of sale, how often have you been told: “This card’s been denied. Do you have another form of payment?”
Don’t think that this is a result of financial responsibility. It can happen for a variety of reasons. Here are some reasons your credit card can be rejected.
– Maxed out credit card: When you go over limit, you can face negative consequences in the form of fees and denials. It can also damage your credit score. Do not use your credit card when you are close to the limit. If you can’t help using it, you can try to request a credit limit increase.
– Fraudulent purchases: Suspected or reported fraud can result in account freeze or even in closure of the account. To avoid it, contact your credit card issuer to validate the purchases.
– Transactions holds: Some transactions – travel transactions, for instance – can cause a hold be placed on your account. Assuming you are getting close to the limit, your credit card can be rejected at a point of sale. To avoid this, keep your balances low to have a large amount of available credit.
– Foreign transactions: Any foreign transaction can raise credit card companies’ suspicions about fraudulent purchases. Therefore, let your credit card company know before you travel abroad or make a foreign transaction online.
– Unusual purchases: If the purchase you make is considered odd based on your prior purchase behavior, your credit card company may flag this purchase. Warn your credit card company when you are going to make an unusually large purchase or going to shop at a different type of store.
– Delinquent accounts: Do not ignore the balance due if you do not want to lose your card. Set up payment reminders. If you are in a tight financial situation, reach out to the creditor to see if payment arrangements can be made.
– Expired credit card: If you didn’t get a new credit card in the mail before your card’s expiration date, you should call the company to make sure the card wasn’t stolen.
– Closed account: The credit card company can close your account for any reason without notifying you in advance. The accounts are often closed because of insufficient account use. So, use the card regularly and responsibly to minimize the risk.
The credit card issuers lose millions on fraud every year, so there is no surprise they’re very sensitive when your spending pattern changes. They just want to minimize their losses.
Latest Credit Card Issuers News
The new COVID-19 virus had a significant negative impact on the economy of the whole world and the United States in particular. Many companies were forced to temporarily or even permanently close, thus leaving their employees with no jobs and livelihoods. However, fortunately, most major banks, lenders and credit unions have not left their customers […]
The two large regional banks, BB&T and SunTrust, are currently in a process of merging to create the sixth largest banking holding company in the United States. The new issuer, headquartered in Uptown Charlotte, North Carolina, was named Truist. According to the banks’ announcements, the merger is to bring more branches, ATMs and digital innovations […]
A couple of days ago, Norwegian Air, Norway’s largest airline and the ninth-largest low-cost airline in the world, announced a rollout of their new no annual fee credit card in the United States. The airline currently operates direct flights from New York, Los Angeles, San Francisco, Florida, and Boston to Europe and the United Kingdom. […]
Last week, American Express presented an updated Corporate Program with enhanced benefits for the American Express Corporate Green, Gold, and Platinum credit cards. Over the next few months, the issuer will add to the program new or renewed tools and solutions that are implied to be of benefit to both businesses and their employees. These […]
Not so long ago, Citi launched a new feature aimed at current Citi credit cardholders – Citi® Flex Loan. The whole point is that, if you own a Citi credit card, now you may be offered to borrow money from this account’s credit limit and pay it back at a fixed APR, in fixed monthly payments over a set period.