Debit cards make it easy to complete purchases without using cash, writing checks, or charging to credit. Just tap or insert your card, enter your PIN, and the funds will immediately get debited from your checking account. You then grab your goods and go. Simple, no?
Not always. Every once in a while, a debit transaction gets declined. This can be incredibly frustrating (and embarrassing), especially when you know there is money in the account. On a positive note, the issue is often easy to resolve. Here are some simple steps to take when a debit transaction doesn’t go through.
Make Sure Your Card Is Good
Every debit card has an expiration date. Once the date passes, the card gets blocked automatically and becomes useless to the account holder. If you’ve just started using a new debit card because your old one expired, it may not be activated yet. Until it is, you won’t be approved for any debit transactions that require a PIN.
To get your card working again, you may need to get it replaced or, if it’s new, activate the card either online or by phone. When you start using a new card, you’ll want to be sure to update any online payment information. This ensures uninterrupted services for recurring payments you have set up through your card, such as online payments for your cell phone, car loan, streaming and subscription services, and utilities.
Check Your Account Balance
While you may believe you have enough money to cover a purchase, unexpected debits, merchant holds, and pending deposits might have reduced your available balance. That’s why it’s critical to check the balance of your checking account.
You can do this by logging into your account using your banking app or computer, then looking at both your “current balance” and “available balance.” What’s the difference? Pending transactions (which have not yet posted to your account) are included in your “current balance” but not in your “available balance.” It may look like you have enough funds to cover a purchase, but if the money isn’t part of your available balance, you can’t spend it.
If your available balance is lower than you thought, scan your recent transactions and look for:
• Pending deposits: You may have deposited a check or have a direct deposit that has not fully cleared yet. This means the bank is still verifying that the incoming deposit is valid.
• Merchant holds: A hold is a way for merchants to reserve a certain amount of funds in a customer’s account to ensure a future transaction can be processed successfully. This can happen for transactions where you won’t know the final amount of the charge until later, such as hotel reservations or a car rental, and can temporarily lower your available balance.
• Recent withdrawals: Look for any recent withdrawals or debits that you might have forgotten.
• Errors or fraudulent activity: Check for any errors or unauthorized transactions that could have depleted your funds. If you notice any, reach out to your bank right away.
Recommended: How Banks Investigate Unauthorized Transactions
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Know Your Debit Card’s Purchase Limit
If you’ve made some particularly large purchases in the last 24 hours, your debit card might be denied because you’ve reached your daily purchase limit. Banks set daily purchase limits on debit cards to minimize risk if the card is lost or stolen.
The daily purchase limit for a debit card can range anywhere from $300 to $50,000 per day, depending on the financial institution. You may be able to request a temporary limit increase on your debit card to complete your purchase by calling your bank. For security purposes, the representative will ask you to verify your identity.
Check for Holds or Blocks on Your Card
Banks and merchants will sometimes place temporary holds or blocks on someone’s bank account for various reasons. These can temporarily restrict access to your funds, even if you have a sufficient balance.
Here are some reasons why your bank may have put a hold on your debit card or decline a particular transaction.
• You repeatedly typed in the wrong PIN: If you enter the wrong password three times, your ATM card may get blocked. If this happens, you can generally just wait for 24 hours and your card will be unblocked automatically.
• Suspected fraud: If your bank detects any suspicious activity on your card, such as an unusually large purchase or unusual use patterns, they may automatically block your card to protect against fraud. Using your card in a new location, especially internationally, can also trigger a security block.
• Institutional security issue: If there is a security issue at the bank or credit union that holds your account, it may block your debit card to protect your money and details. In such cases, the bank will issue a new card to its customers, free of cost.
The best way to get to the bottom of a card hold or block is to speak with a customer service representative at your financial institution. In some cases, explaining that the purchase is legitimate or that you are currently traveling, and confirming your identity will immediately resolve the problem.
Informing your bank in advance about debit card usage that will be outside your regular routine can help avoid temporary holds and declines.
Recommended: Why Credit Cards Get Declined
Consider Alternate Payment Methods
If you can’t immediately resolve a declined debit card and have a crucial transaction that you don’t want to walk away from, you may need to use an alternate payment method. Here are some options to consider.
• Credit card: Even if you prefer debit over credit, having a credit card in your wallet can serve as a backup if your debit card fails.
• Cash: Though not every place of business accepts cash, it can be useful to have cash on hand to cover necessary transactions in the event your debit card fails.
• Mobile payment app: If you have a payment app on your phone that is connected to a credit card or linked directly to your bank account, you may be able to use that instead of your debit card.
• Bank transfer: For larger transactions, you may be able to make the payment by transferring money from your savings or checking account directly to the recipient.
The Takeaway
Dealing with a declined debit card can be annoying and stressful. To get to the root of the problem, you’ll want to first make sure your card is up to date and, if it is, check your account balance to confirm there are sufficient available funds to cover the purchase.
If you have enough funds, you might next call your bank to see if there’s a temporary hold on your card due to any security issues. By confirming that the transaction is legitimate and verifying your identity, they may lift the hold.
Being proactive and keeping a close eye on day-to-day activity in your checking account can minimize debit card declines and ensure smooth transactions in the future.
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FAQ
Why would a debit card be declined even if I have money in my account?
A debit card may be declined even if you have enough money in your account to cover the transaction due to various reasons. These include:
• Exceeding daily transaction limits
• Multiple incorrect PIN entries
• Using an expired card
• Using a new card that hasn’t yet been activated
• Suspected fraud
If your debit card gets declined despite sufficient funds, it’s a good idea to contact your bank. You may be able to quickly resolve the problem and get your card working again.
What should I do if my debit card is declined due to suspected fraud?
If your debit card is declined due to suspected fraud, you’ll want to immediately contact your bank’s customer service department. They will review recent transactions with you and, if necessary, cancel that card and issue a new one.
Once you receive the new debit card, you’ll want to change your PIN and monitor your account for any further suspicious activity. Banks often have fraud protection services to assist and safeguard your funds.
How long does it typically take to resolve a debit card decline issue?
The length of time it takes to resolve a debit card decline will depend on the cause. If the problem is insufficient funds, you may be able to quickly fix it by transferring money from another account. If the issue is suspected fraud, you may be able to clear it up right away by calling customer service, verifying your identity, and letting them know that the charge is legitimate.
Other scenarios may take longer. For example, if your debit card has been compromised or has expired, you may have to wait until you receive a new card in the mail.
Photo credit: iStock/Jacob Wackerhausen
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