Why Is My Debit Card Declining When I Have Money? - Experian (2024)

Reasons Why Your Debit Card Can Be Declined

Debit card transactions can be declined for something as simple as incorrectly entered information or something more serious, like fraud. Here are eight of the most common reasons your debit card may be declined, even if you have money in your account.

1. Your Account Has an Insufficient Balance

It's true. Most of the time, a declined card isn't the result of insufficient funds, but it does happen over 26% of the time, according to a 2022 Digital Economy Payments survey. Often, it's a simple mix-up. You may have money in your savings account, but your checking account is overdrawn or doesn't have enough funds to make a purchase. Many banks will deny a purchase if it causes you to overdraft your account.

Since it's easy to underestimate how much you spend, it's a wise financial practice to review your account regularly so you always know your available balance. You might also consider using your account dashboard or contacting customer service to set up alerts that let you know when your account balance is running low.

Learn more >> Steps to Take After Overdrawing Your Account

2. You Entered the Wrong Information

Human error is the leading reason debit cards are declined for online purchases, according to the Digital Economy Payments survey. Remember, your card information must exactly match what the bank has on file. Your transaction could be declined if you make a mistake entering your:

• Debit card number
• Expiration date
• Security code
• Billing address

If your card is declined, double-check the card information before resubmitting the transaction. Several failed attempts could trigger your bank's fraud alert system and result in your card being suspended.

3. Your Bank Suspects Fraud

Suspicion of debit card fraud is another common reason for declined debit card transactions. As with credit card issuers, banks decline debit card transactions when they suspect someone is using your card without your permission or other potential signs of fraud, such as:

• Transactions for a large amount
• Unusual purchases that don't fit with your usual spending habits
• Withdrawals or purchases from a casino or gambling site
• Transactions from an unfamiliar location or via an overseas website
• Multiple submissions to complete a transaction

Learn more >> How to Protect Your Bank Account From Fraud

4. Your Debit Card Is Expired or Inactive

Sometimes, the reason for a declined debit card is as simple as an expired or inactive card. Your debit card automatically disables once it expires. As such, you'll need to get a replacement card and activate it to ensure any new transactions are approved.

Your bank should automatically send you a new card before your current one expires. But if your card's expiration date is approaching and you still haven't received a replacement, contact your financial institution immediately to request a new one.

Your new card should come with activation instructions. Typically, you can activate the card online, over the phone or by using it at an ATM.

5. Your Card Is on Hold

Your bank may temporarily suspend your card to prevent it from completing transactions. This hold is typically a preventive measure against potential fraud or unauthorized use.

For example, your bank may lock your card if there's been a data breach at a retailer where you've used your debit card. Transactions you've made while traveling could also lead to a hold on your card.
Preauthorization holds with hotels, rental car agencies and other businesses can also be problematic. In these cases, a merchant places a temporary hold on your card that lifts once you settle the final bill. If you're traveling and anticipate dealing with one or more holds, consider using a credit card for the hotel and rental car and your debit card for other purchases, or vice-versa, to avoid tying up funds you may need.

6. Your Card Is Damaged or Expired

A worn-out magnetic strip or damaged chip on your debit card may be all it takes to trip up a transaction. With repeated use over time, your card can wear down and stop working properly. If it's damaged, call your bank or credit union and request a new card.

Similarly, your bank should automatically send you a new card before your current one expires. But if your card's expiration date is approaching and you still haven't received a replacement, contact your financial institution immediately to request a new one. And once you receive your new card, make sure to update any autosaved payments since you will have a new expiration date and CVV.

7. You've Exceeded Your Daily Purchase Limit

Your debit card could be declined if the purchase would cause you to exceed your bank's daily transaction limit. Banks place limits on debit cards to protect you—and themselves—from thieves who might rack up excessive purchases on your account if they get access to your debit card.

Daily purchase limits vary by bank but typically range from $300 to $7,500. Here are the daily purchase limits for several popular banks.

In addition to daily purchase limits, your bank likely has a daily ATM withdrawal limit. These limits usually range from $300 to $1,000 per day, but you may want to contact your bank to determine their specific limit.

8. You're Traveling

You may have experienced a failed debit card transaction while traveling far from home. Usually, the declined debit card is a security measure your bank uses because it suspects fraud. This is especially common if you're traveling to another country.
It's also worth noting that, due to sanctions, banks must restrict transactions from certain countries, including

• Cuba
• Iran
• Iraq
• North Korea
• Burma (Myanmar)
• Sudan
• Syria

How to Fix a Declined Debit Card

Whether you're making a purchase online or in person at a business, your debit card could be declined while you're trying to make a purchase. Thankfully, there are steps you can take to resolve the situation.

• Check to make sure you've entered the correct payment and billing address information. Correcting the mistake may resolve the issue so you can make your purchase. If your information is accurate, try submitting the transaction again, as the decline may be due to a temporary network or server error. However, if the transaction fails again, investigate the issue further before resubmitting. Multiple failed transactions could trip your bank's fraud prevention system.
• Respond to verification prompts. Banks often ask you to verify a transaction before approving it, just to make sure there's no fraud involved. In this case, the bank didn't decline the transaction; it's just waiting for verification to confirm the transaction is legitimate.
• Check your account balance. Review your online account through your mobile app or website to make sure you have enough money to cover the transaction.
• Contact your bank or credit union. If you're unsure why your debit card is declining, call your financial institution to investigate what is causing the issue. It could be an expired or damaged card, a negative balance or any of the scenarios listed above. Often, a customer support representative can help you resolve the issue quickly.

How to Prevent Your Debit Card From Being Declined

Dealing with a declined debit card transaction can be frustrating and inconvenient. The following tactics could help to prevent your debit card from declining.

Make Sure Your Card Is Unlocked

Many banks allow you to lock your debit card as a security measure when you misplace or lose it. While preventing thieves from making unauthorized transactions is crucial, it could also prevent new or recurring transactions, like debit card payments, from being processed. If you find your card, make sure to unlock it through your bank's mobile app or website.

Notify Your Bank Before Traveling

Let your bank know beforehand when you'll be traveling, especially if you're going abroad. This preventive measure lets your bank know that transactions from your destination are legitimate, not fraud. For the same reason, let your bank know of any upcoming large or unusual purchases that differ from your usual spending habits.

Review Your Accounts Regularly

Checking your account balance frequently can keep you informed when your balance is low and help prevent declined transactions due to insufficient funds. Additionally, consider signing up for text alerts to be notified when your balance is low.

Reviewing your account activity can also help you spot any unrecognized transactions. If you do notice a suspicious debit card transaction, notify your bank immediately.

Sign Up for Overdraft Protection

Some banks and credit unions allow customers to enroll in overdraft protection, which could help you avoid getting declined if you attempt to make a purchase that exceeds the available funds in your account.

Typically, your bank will cover the difference by automatically transferring money from one of your linked accounts, such as a savings account. Keep in mind that overdraft protection may have associated fees.

Know Your Card's Expiration Date

You might set up text alerts or calendar reminders to let you know when your debit card is about to expire. Once you receive your new card, activate it immediately and update your payment information for any recurring payments you've set up to make sure they go through as planned.

Learn more >> Are Credit Cards Safer Than Debit Cards?

Keep Tabs on Your Credit and Debit Cards

Suspicion of fraud is one of the most common reasons a debit card transaction is declined. Checking your bank account often can help you quickly identify suspicious transactions that could be fraudulent. Similarly, credit monitoring could supplement your efforts and alert you to potential signs of identity theft and new inquiries.

Enrolling in free credit monitoring with Experian could also help you maintain strong credit. You can monitor your spending, debt usage and track your FICO^® Score^☉ , the score used by 90% of top lenders.

If you're thinking about opening a new checking account, the Card can help you build credit without debt by automatically linking to Experian Boost^®ø, which gives you credit for eligible bill payments after three months of payments. You'll also pay no monthly fees^¶ for Experian Smart Money, have access to more than 55,000 fee-free ATMs worldwide^** and could receive your paychecks up to two days early when you enroll in direct deposit^†. You can get an Experian Smart Money Account through a free or paid Experian membership, which also gives you access to your FICO^® Score, Experian credit report and more. See terms at experian.com/legal.