Credit cards serve as a really resourceful financial instrument when it comes to making purchases, both in-store and online. You can truly value the resourcefulness of a credit card when you want to purchase something online but you are short of the funds you need to complete the transaction. In this case, a credit card will provide you with the necessary credit to facilitate your online transaction. The online retailer will receive the funds from the bank with whom you hold your credit card account. However, you will have to pay back this amount to your bank on the statement due date for your credit card.
At times, you might encounter a situation where your credit card transaction is being rejected or declined when you try to pay for a purchase. Internet connectivity issues are a common reason as to why your credit card might have been rejected in case of an online transaction. Often, the payment network for your credit card might also fail to work and as a result, your transaction will not be processed. There are several other reasons for a credit card online transaction being declined. Through this article, let’s explore some of the common reasons behind the failure of credit card transactions online.
Mistakes Committed During the Credit Card Transaction
When you try to make a credit card transaction online, it might also be rejected due to an error made during the process. The nature of the mistake could be big or even small, but the bank or the card issuing company could decide on not processing it. One of the common mistakes would include your card reaching its credit limit. You might have been completely unaware or you might have forgotten about this when you tried to use your credit card for a particular transaction. Reaching a card’s expiry date can also qualify as a mistake as to which your online purchase was rejected. You might not have kept track of the expiry date for your credit card.
Another reason is that your bank or credit card issuer might also have cut you off without you being aware of it until your card got declined during an online transaction. This could be a reason of you being held liable for a wrongful act being committed through the card or it could also be a result of you failing to make repayments. Last, but not the least, you might have entered the wrong information for your card. When banks are unable to verify such information, they usually stick to the safest course of not letting your card transaction from being processed, simply because they are not sure if it’s actually you who are trying to make the transaction.
Protection Against Fraudulent Transactions or Charges
Banks can be held liable for fraudulent transactions being processed on credit cards. As a result, they are cautious when it comes to processing any charge that might seem suspicious. Banks might even be wary of a big purchase made all of a sudden or even for smaller irregular or suspicious transactions. For instance, your credit card transaction might be declined if you purchase from an usual category, one that looks different from your usuals spends made through the credit card.
Your credit card could be even rejected if you are making several transactions over a short timeframe. Basically, banks prefer to avoid any situation where they can be held liable for a fraudulent charge made through any credit cards issued by them. In such cases, they take the necessary steps by preventing the transaction from being processed.
Protection Against Illegal Purchases
You might be trying to make an online purchase or pay for a service online could be considered illegal according to the law. Banks that process such a transaction can be considered as aiding in the process. All banks and financial organisation would want to avoid falling into such a situation. Your credit card transaction processing systems are quite equipped to determine if a transaction or purchase made through the card can fall into an illegal category. Based on this, banks might prevent your credit card transaction made online from going through.
For instance, you might want to use your credit card for gambling. Banks usually reject such transactions made through credit cards issued by them. Security departments at banks might even call you if they are suspicious of a particular transaction to be illegal. Based on this, they determine if the transaction can be allowed.
Change in the Status of the Card
You could be holding a supplementary credit card where your transactions are authorised based on the primary cardholder’s authorisation. The holder can decide at any point to revoke the authorisation forwarded to the supplementary card you have. In such a case, your credit card transactions will not be processed anymore. This can be a reason why your credit card was declined while you tried to purchase something online.
What Can You Do to Deal With Such a Situation?
When an online transaction made through your credit card gets declined, your first course of action must be to check and verify the information you have entered. In case the information is correct and your transaction still doesn’t get processed you might want to call your bank or the credit card issuer. Banks usually call only when they have rejected the transaction from their end due to suspicion of an illegal or fraudulent charge. In case there is no evidence of any such unlawful activity, you must speak to your bank to help you with the situation. They would take a closer look at the transaction and find out as to why it wasn’t processed. In case all the information matches and your transaction was legitimate, banks will help you see your transaction through. If your credit card was blocked by the bank, there may be additional steps that you have to take to unblock it.