7 Common Reasons Why Your Credit Card is Not Working

You are in the midst of a transaction. You have entered the details of your card and are waiting for the confirmation from the bank. There is no response or the Credit Card issuer has declined the transaction. Being in such a situation can be frustrating. You try again and get the same response. Therefore, something is wrong with your Credit Card. Here are seven common reasons why your Credit Card does not work.

·         You have not activated the Credit Card, or it might have expired

New cards come with card activation instructions. Usually, you have a sticker on the card listing out the steps to follow to activate the card. It involves calling a toll-free number and entering some details as listed down in the instruction sticker. You can activate your card instantly in this manner. Some card issuers allow you to activate the card online or via a smartphone app.

Check out the expiry date on your Credit Card. If you use your Credit Card after the expiry date, there is no way the card will work. Usually, you get a replacement card from the bank before the expiry of the old card. It could be on the way.

·         Your card issuer has issued a new one

Credit Card issuers emphasise the safety aspect of their Credit Cards. They keep adding new features to cater to enhanced security levels. One of them is to add the chips in addition to the magnetic strips. They might have initiated the process of dispatching the card, but you might not have received it. The banks deactivate the old card after mailing the new card. You have to activate the new card on receiving it. In between, the old card will not work.

·         The bank has declined your payment

Every Credit Card comes with a set limit. The bank has every right to decline the payment if you go over the limit. You might have made the payment, but it can take some time for the bank to account for the payment. If you have not paid the amount, you can still do so and free up some credit.

·         Damage to the Credit Card

Your Credit Card comes with either a magnetic strip or a SIM chip. You should take care of the magnetic strip. You might demagnetise it accidentally by placing it in proximity to external magnetic fields. Scratches or dents on the magnetic strip can also demagnetise your Credit Card. The magnetic strip contains your credentials. You cannot use your card without these details. Similarly, you might have damaged your SIM chip. The only solution is to apply for a replacement card.

·         Connectivity problems can also be an issue

When you swipe your card at the merchant establishment, the card swiping machine establishes contact with your card issuer through the payment processor. Connectivity problems at any stage of the transaction can fail the deal. Remember that the merchant establishment can hold on to your Credit Card details and re-initiate the transaction. It is the main reason why the banks have the concept of entering the PIN details for completion of the deal.

·         The card issuer might have frozen the card

Frauds can happen anytime. A third person might try to use your Credit Card details for illegal purchases. Under such circumstances, your Credit Card issuer freezes the Credit Card as soon as they receive the intimation from you. It can also happen that the amount in question might not be consistent with what you usually spend.

It can cause suspicion in the mind of the Credit Card issuer who might go on to block the card. It often happens when you make an international purchase. Every card has a specific international usage limit. In case the transaction amount exceeds the threshold, the card will not work. You have to contact the bank and request them to release the hold.

·         Entering the wrong billing information can also be one reason

You have to enter the billing information in case of online purchases. Entering the wrong information such as wrong CVV number or expiry date can cause the bank to decline the transaction. You have to enter the billing information accurately as it appears on the Credit Card statement. If your card continues to cause problems, it is advisable to contact the card issuer and seek a replacement.

Remember your replacement card can take a while reaching you. In the meantime, you can use an alternative card, if you have one.

To Apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

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