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7 Causes of Unusable Credit Cards

Causes of unusable credit cards - When your credit card is "rejected" at the checkout is the most embarrassing financial problem.

7 Causes of Unusable Credit Cards

Waiting in line at the checkout or missing a 40% discount at an online store are financial events that make the whole day uncomfortable.

Apart from not having enough funds on your credit or debit card, there are several reasons why your card might be declined.

Here are the reasons why credit cards can't be used

1. Late Bill

Depending on the terms and conditions of your card, the card issuer reserves the right to deactivate your card even if you are recently late paying your bill. Some retailers, such as gas station chains or clothing stores, issue cards that require you to pay all bills on time so you can continue to use your card for the next period.

How to handle it?

Call customer service and ask how much you have to pay to have your card reactivated. If you have a good payment history with the card issuer or have a good enough reason for a late payment, such as a medical emergency, request a late payment claim waiver. Prevent future late payments by scheduling regular payments through your bank account for at least the monthly minimum payment.

2. Amount of Funds Retained

When you use your card to buy gas, rent a car, or book a hotel room, some funds are held to ensure that you have enough funds to make a payment.

The timing of these deferred refunds varies from card issuer to card issuer, meaning you may inadvertently be deemed to have overexploited available funds.

How to handle it?

The key is to prevent funds from being held. At gas stations, pay by debit card at the cashier inside before buying. When planning to use a debit card at a hotel or car rental, first ask how much funds are being held so that you can budget properly. Also, ask if the company accepts cash deposits. That way your money can be returned immediately instead of having to wait for the old card to return.

3. Waiting for the money to be transferred

Three working days is a saying we often hear in the business world. It's not a long time. However, the problem is when it comes to payments and settlements that are past due, this can result in late payments.

Financial institutions have different policies in the handling of funds and the transfer process. For example, a bank account transfers funds as soon as a transfer order is made, but another bank account holds funds for 24 hours and the next day the funds are transferred only after working hours are completed.

How to handle it?

Determine and know the transfer time from the bank or card issuer. Or if you know that payment must be made now, contact customer service and ask them to take a look now.

4. Using the Card Chip the Wrong Way

It takes time to get used to the new chip card. Some chip card readers will not accept your debit chip or credit chip when you try to swipe the magnetic stripe. Also, removing the chip card before the prompt appears on the screen may result in your card being rejected. However, the benefits of a chip card outweigh this minor inconvenience.

How to handle it?

Try processing the payment one more time. Insert the card and follow the on-screen instructions.

5. Trigger Card Fraud Protection Enabled

In response to the rise of card counterfeiting, many issuers are paying attention to purchases outside their usual pattern. For example, suppose you are used to paying for goods from abroad via PayPal. One time, you paid directly with the card. Your payment was declined and you receive an SMS alert. Another thing that can trigger the activation of your card's fraud protection is traveling abroad without being with the card issuer.

How to handle it?

Register your card to receive notifications via SMS so you can know that you are making a transaction. When communicating abroad, notify the card issuer about your trip abroad.

6. Forgetting Annual Fees

You remember very well that you still have money on your credit card, so why was your card declined? You may forget that there is an annual fee. This annual fee is close to the limit, you risk not having enough funds when the annual fee is charged.

How to handle it?

There is no choice but to pay this fee. In the future, create a reminder for a month before the annual fee is charged so that you can pay it before it is charged. Review your card's terms and conditions and be aware of other fees that may cause your credit card to be declined.

7. Supplementary Cards Disabled

If you are an additional card holder, you can use as long as the card holder allows. If your spouse, family member, relative, or friend entrusts you with an extra card, respect the rules they made. Communication is key. Otherwise, you will be terminated.

How to handle it?

Contact the primary card owner and request to have your card reactivated. Be calm, polite, and be prepared to apologize if you make a mistake.

Vital Records :

Always Bring Cash => For those of you who prefer to pay by credit card, of course you are not aware of making a credit card a necessity as the main means of payment.

However, it would be better to carry spare money in case of an emergency such as a credit card being declined or a credit card being lost.