5 Reasons Why Your Credit Card Transaction Can Fail?

A credit card is a small plastic card issued by a bank or any other recognized institution, allowing the holder to purchase goods or services on credit with the grace period of “25-30” days of repayment.
Credit cards are financial tools that can save you money or completely ruin your finances, depending on how you use them. One of the biggest money mistakes you can make is to use a credit card without really understanding how it works.

We trust credit cards so much that we do not bother to check whether we are carrying any cash even when are going for shopping or dinner. Mr. and Mrs. Lobito after celebrating their 10th anniversary at a 5-star restaurant, a waiter came with a shocking statement that the credit card transaction has failed and requesting to give another card or make cash payment. Luckily, Mrs. Lobito was carrying another credit card which saved both of them from facing embarrassment.

Here are 5 reasons why your Credit Card transaction can fail:

1) Credit Limit: Most of the time credit cards are shared between couples, friends, and siblings this may be to earn extra points or earn cash back. In such cases, there are chances of exceeding the credit limit. If one of them has spent the entire balance, the other might not know. This is particularly the case when add-on cards are used. It is better to keep a track of what is spent in a month using your credit card limit.

2) Incorrect PIN: If you have used the incorrect PIN after swiping the card, the transaction will be declined. It may so happen when the card is not being used for months together there may be some confusion of PIN with other card PINs or PIN compromised.

3) Outdated card: When you fail to notice that your credit card has expired one and when you hand over the same card, the transaction will be failed for an obvious reason. Banks usually send the new credit card ahead of expiry. kindly take note to know when your credit card is expired get the new one and do not fail to activate it.

4) Protection and Safety: If your card is damaged and your CVV number is not in good condition, the electronic machine will fail to read the information on your card.

5) Connectivity: The transaction can be declined due to server issues or computer lines are down. The vendor’s machine may also have some reading issues. Check with your merchant in case of the decline in the transactions.

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