What is more embarrassing than being in a situation where your debit card is declined for a transaction? If it happens to you with an irrational retail merchant, you may be suspected of attempted fraud. And what are your options if your debit card is declined via an online transaction? What should you do in these situations?
Before we get into all of that, let’s differentiate between declined credit card and debit card transactions.
Debit Card Declined (Vs. Credit Card)
Your unsecured credit card is a financial tool that lets you borrow money lent to you by a credit card company. (A secured credit card’s credit line is initiated by a deposit).
When you use a debit card to make transactions, you are withdrawing money directly from your bank account to make purchases. A debit card is a key to removing your money from your bank account, so when it’s declined you have cause to worry.
Over 46% of Americans use a debit card to make their purchases. So, here is what you should do if your debit card is declined.
Keep Calm
There are many legitimate and logical reasons why your debit card might be declined. If this happens in public at a retailer, keep calm. You have every right to be frustrated and even angry.
But blowing your top, screaming in public, or taking your anger out on the cashier, who is a stranger, isn’t going to help you resolve the issue. Losing your cool may get you ejected from the store or in trouble with the law.
Also, consider that it may take a little time to get to the bottom of the issue. A retailer may ask you to stand to the side while they serve customers behind you. Don’t take it as an offense.
Stay calm, reassess what happened, and also consider that the store could help you resolve the issue by calling your financial institution on your behalf.
What to Do if Your Debit Card is Declined
First, ask to have the transaction attempted again. Sometimes a glitch or mistake could have occurred that prevented the transaction.
If that doesn’t work, you need to contact the customer service representative for your bank or financial institution. When your debit card is declined, your customer service representative is your best option to find out what is happening.
Some customer service representatives are available 24-hours a day every day; other customer service representatives may only be available for limited hours on weekdays. The immediate availability of your customer service representative depends on the policies your bank institutes.
The point here is that if your debit card is declined, you have to wait a few hours to get the situation resolved. You could end up waiting a few days to get the issue resolved if your debit card is declined on a weekend and customer service representatives aren’t available.
You can also try to contact your bank’s customer representative online, especially if your debit card is declined after an online purchase.
However, you may have better peace of mind talking to a human representative. A customer service representative can access your records and answer your questions in real-time.
And make a list of questions to ask before you call. That way, you can assess every solution contingency while on the call instead of thinking of questions you should have asked afterward.
Now, let’s consider some reasons why your debit card might be declined for a transaction.
Fraud Protection Alert
Your debit card may have been declined for your own protection, believe it or not. Financial institutions use advanced algorithms that continuously assess deviations in your purchase habits, no matter how small.
So essentially, a fraud protection alert may have accidentally been triggered because you bought something a bank algorithm decided was suspicious.
No, you don’t have to jump for joy if you are confronted with this situation. Your debit card and corresponding financial institution treated you as an ostensible scam artist. Unfortunately, this may happen from time to time.
Especially if you buy out-of-the-ordinary things relative to your purchase history. The reality is that this is the nature of fraud protection initiatives that most financial institutions employ now.
Maximum Daily Withdrawal Limit
Depending on your financial institution, you may be limited by how much money you can withdraw from your bank account each day.
Make sure that you haven’t exceeded your bank’s maximum daily withdrawal limit before making a debit purchase. Check your account balance beforehand.
Various Bank Fees
Check your latest bank statement before you make a debit card purchase.
You may have insufficient funds in your account. Or, you may have insufficient funds in your account because of overdraft fees.
Is your bank account linked to automatic bill payments for a variety of bills? Your bank account may have automatically paid your bills before your attempted purchase leaving you with fewer funds.
The point is that a variety of bank fees or automatic payments might have kicked before your attempted purchase. And the amount you believed you had in your bank account might decrease unknown to you.
It is also better to check your account status before your debit card is declined to protect your respectability. If you lose your cool, scream at a cashier at a retailer, and then find out your debit card was declined because of bank fees and automatic bill payments, you’ll look foolish.
Reassess Your Actions and Call Customer Service
There is nothing in the world that may panic you more than having your debit card declined.
Keep calm. Contact your customer service representative. Check your account status online.
Also keep in mind that depending on the hours of operation for your customer service representative, you may have to wait for a resolution.
There may be a logical reason why it was declined – and the best way to find that reason is not to panic or get angry.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.