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Why Isn’t My Credit Card Working?

Last Updated: November 13, 2024

3 min read

Table of contents

Key Points:

The first step to figuring out why your credit card isn’t working is to make sure that nothing is physically wrong with the card.
If you’re paying on a reader that requires a magnetic strip, the payment may decline because the strip malfunctioned.
If there’s nothing physically wrong with your card, the issue may be with your account.

You tap, insert, or swipe your credit card as you’ve done so many times before—but, for some reason, your credit card isn’t working. You hand the card over to the cashier to try, and they have no luck processing your payment either. Have you ever encountered this problem and wondered why your credit card won’t work? You know your account is in good standing and the card even looks fine. So why does the credit card suddenly refuse to read your credit card information?

Five reasons your credit card isn’t working

The terminal can’t read your card

Your card’s chip or strip gets a little dirtier with every surface it encounters; eventually, the buildup of grime may mean the payment terminal can’t read your credit card payment information. If after wiping your card down it still won’t work, it may be a good idea to reach out to your credit card company to get a replacement card. In the meantime, if your card issuer allows it, you can use your card via mobile wallets and/or tap to pay.

Did you know?

If you’re going to replace your credit card, it’s worth reviewing your rewards and the terms of the card and comparing it against other credit card options. A new credit card may provide a way to earn more rewards based on your spending habits.

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Your purse or wallet uses a magnet

If you’re paying somewhere that requires you to swipe your card and the card doesn’t work, it may be because the credit card info in your magnetic strip was impacted by a magnet. The strip on the back of your credit card uses magnetic particles in its swipe functionality.

The strip contains data about your payment information and your credit card account. Contact with magnets can scramble the data on a card’s magnetic strip. Once that happens, point-of-sale terminals can’t “read” the card, resulting in your credit card not working.

You may not see magnets in your purse or wallet, but they’re a common design feature to facilitate opening and closing. Your card’s swiping ability could have an issue if your purse or wallet uses magnets and your card’s strip comes close enough to them for an extended time.

Magnetic strip scratched or disfigured

Another credit card issue is when you carry your credit card in your pocket with keys or coins that can scratch the card’s magnetic strip. Likewise, damage like running your credit card through the wash or adding a bend or crack will distort the data on the strip. If you notice that your card has physical damage and it’s unusable, it’s a good idea to reach out to your credit card company and ask them to send you a new card.

You need to use the chip first

Chip cards have been rolled out by credit card issuers and banks to enhance payment security and provide a contactless payment option (where available). When you try to swipe these cards at terminals that are fully enabled for chip cards—otherwise known as EMV—the terminal will prompt you to insert your card’s chip facing up into the terminal first.

Cards with chip-and-PIN and near-field (NFC) technology typically aren’t vulnerable to magnetism the same way magnetic stripes are.

A problem with your account is causing your card to be declined

It may be that your card is working fine and transmitting your information, but the card issuer is declining the credit card transaction. There are many reasons why you may encounter a credit card decline.

Insufficient funds (no available credit)
Missed minimum payment (or late payment)
Unpaid credit card bill
Flagged for potential fraud

Some reasons credit card companies may decline transactions are that your purchase exceeds your credit limit, or the purchase is in a location where you don’t normally shop. If the credit card issuer declines your transaction, it’s a good idea to call the number on the back of your card and find out why. The bottom line: If your credit card isn’t working, contact your card issuer for a replacement card. You may also want to consider a contactless card or using mobile payments.

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