Very few people pay for things with cash anymore Credit is often the simpler way to go, and a lot of people use their credit cards to earn cash back or points on things like travel, so it’s the common way to pay.
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So, it’s never a good feeling when you go to make a purchase and your credit card is declined, but it happens more than you’d think, for a lot of different reasons. If you find yourself in this situation, we have some advice for you.
Don’t Panic
If you’re making a big, important or necessary purchase with your credit card — online or in person — and it’s declined, it can feel like the worst thing in the world. Because this can be both embarrassing and alarming, your first reaction might be to panic.
However, there are multiple reasons why a credit card can be declined and several solutions, so don’t give yourself unnecessary stress before you resolve the problem. It might also be simpler than you think!
And before you assume the worst, don’t forget to try to re-swipe or re-run the transaction. Sometimes machines can just be having problems, or you didn’t insert or swipe your card properly.
Complete Transaction With Another Form of Payment
If you’re in a position to do so, the next step is to complete your transaction with a different form of payment. A different credit card, debit card, check or even cash — fortunately all of those forms of payment are still good! Of course, if you don’t have an alternate form of payment at hand, then you can either set aside the goods you were paying for, let the payee know that you’re going to contact your bank or lender, and come back to the purchase at a later time. Hopefully your purchase isn’t time dependent.
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Alternately, if you’re trying to pay for something where you can’t leave, such as a meal or car repairs, and you don’t have an alternate form of payment, you can leave something as collateral, like a driver’s license, while you go and secure the funds, according to Card Ratings.
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Call Your Bank or Lender
You want to call your bank or lender after a declined transaction promptly, because among the many reasons your card could be declined is concerns about fraud. If your bank or lender has detected what they consider fraudulent activity, they will often lock down your card until they can get in touch with you.
In some cases, your bank or lender may actually cancel the compromised card and issue you a new one, so make sure you have some alternate forms of payment on hand, according to Money Tips.