Restaurant customer holds credit card reader in his hands to pay his bill.

Why Was My Credit Card Declined?

Last Updated: January 8, 2025

4 min read

Table of contents

Key Points:

Your card may not get approval if you’ve reached your credit limit, or if you attempt a purchase that exceeds your available credit.
A large purchase that doesn’t fit your spending patterns may appear suspicious to your credit card company, so they may decline the transaction.
If you travel without notifying your credit card issuer, they may place a hold on your account or decline credit card transactions.

It can be unsettling to have your credit card declined or have a failed transaction, especially if you're not sure why.

There are a few common reasons your credit card or other payment method may have been declined when you tried to make a purchase. We’ve gathered the top reasons for credit card declines, along with help to understand what to do if you have a declined credit card.

7 Reasons your credit card was declined

#1 You’ve reached your credit card limit

If your credit card balance creeps up toward your credit limit and you try to buy something that makes your balance exceed your credit limit, it may result in a card decline. If this is the case, you can make a credit card payment to increase your available credit.

In the meantime, you may need to choose a different payment method, like a debit card, to make your purchase. Some credit card companies send text alerts or emails to inform you when your balance is approaching your credit limit. It may be a good idea to sign up for alerts and regularly check your balance so you know how much available credit you have.

#2 Suspicious purchases

If you use your credit card regularly, your credit card company may be familiar with your usual spending patterns. If you make a purchase with your card that doesn’t fit this pattern, it could result in a declined transaction. Card issuers do this to help prevent credit card fraud. Usually, you'll just have to verify with your credit card issuer that it's you making the purchase and that your card hasn’t been stolen.

#3 Traveling without notifying your credit card company

If you've traveled out of the country recently and made multiple purchases in one day from various locations, it can raise a red flag for credit card issuers as possible credit card fraud. It’s common to get a declined payment when you're out of the country. You can avoid this issue by letting your credit card issuer know you'll be traveling internationally. Plus, you may want to consider getting a credit card that rewards you for eligible travel purchases.

If you’re traveling internationally, you can notify Discover to ensure uninterrupted use of your Discover Card.

The Discover it^® Miles card lets you earn unlimited 1.5x Miles on all purchases.¹ We’ll automatically match all the Miles you’ve earned at the end of your first year. There is no limit to how much we’ll match.²

Learn More

#4 A recent “hold” on your credit card

Did your recent travels involve staying at a hotel or using a rental car company? If so, these businesses may have placed a hold on your card to cover potential costs related to your stay or rental. If your balance plus the pending hold amount approaches your credit limit, you may have a card decline on future purchases (until the hold is converted to a final purchase amount). If you can, use a different card for purchases until the hold clears.

#5 Exposure to potential fraud

Sometimes, credit card companies will decline a purchase on your card that looks suspicious. This happens when credit card information like your credit card number or other card details have been exposed to potentially fraudulent activity. The card issuing bank or credit issuer may freeze your account to prevent unauthorized purchases.

If you are a victim of fraud or identity theft, you’ll want to order a new card. Before signing up for an identity theft protection service, review the company’s offerings to see what’s included and how much a subscription costs. You can compare Discover Identity Theft Protection to other providers.

#6 Credit limit decrease

Sometimes credit card companies initiate a credit limit decrease and then notify you of the new available credit line. This could happen if you have missed payments, reached your limit, or you rarely use your card.

If you try to make a purchase that pushes your balance over the new, lower limit, they may decline your credit card transaction. You might need to use a debit card or a different payment method to complete the purchase. A financial institution may lower your credit limit if you've had a recent drop in credit score.

Did you know?

A lowered credit limit can impact your credit utilization ratio (the percentage of available credit you’re using). This is one of the factors used to calculate credit scores. It’s a good practice to regularly verify your credit card balance, credit limit, credit report, and credit score.

#7 Making a large purchase

Are you planning to make a large purchase on your credit card (think big screen TVs, appliances, or furniture)? If you don’t typically use your card to buy big ticket items, this may alert your credit card company. You may need to verify with your credit card issuer that it’s you making the purchase. This may also happen if you make several “luxury goods” purchases that don’t fit your typical spending pattern.

What to do if your credit card gets declined

It may come as a surprise to have a purchase declined, but you might be able to resolve the situation right away. Call your credit card company immediately using the contact number on the back of the card. Expect to answer a few security questions to verify your identity. Then explain where you are, what you’re trying to purchase and ask why your card or purchase isn’t going through.

Sometimes, simply verifying your identity is enough for the credit card company to authorize the credit card transaction. Other cases may require following up with customer service to request a credit card limit increase when making a purchase that puts your account over the credit limit. If you can’t increase your limit, you might need to use your debit card to complete the purchase; just double-check your account balance to ensure you have sufficient funds available.

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