Understanding Credit Card Decline Codes

If you regularly use a credit card, you know how frustrating it can be when your transaction is declined. Receiving a decline code can be confusing, especially if you do not know what the code means. In this article, we'll break down the most common reasons for a credit card decline and the corresponding decline codes.

Top 5 Reasons for Credit Card Declines

Using a credit card is a convenient way to make purchases without carrying cash. However, there are times when your credit card may be declined, leaving you feeling frustrated and unsure of what to do next. Let’s dive in and explore some of the most common reasons for credit card declines and what you can do to avoid them.

1. Insufficient Funds

One of the most common reasons for a credit card decline is insufficient funds. This occurs when the transaction amount exceeds the available balance on the card. If you recently made a large purchase or have several pending charges, your card balance may be too low to cover a new transaction. It's important to keep track of your spending and make sure you have enough funds available before making a purchase. If you frequently experience insufficient funds, you may want to consider setting up alerts or automatic payments to help you stay on top of your finances.

2. Expired Card

Another common reason for a credit card decline is an expired card. All credit cards have an expiration date, and once the date has passed, the card is no longer valid. It's important to keep track of the expiration date on your card and request a new one before it expires. This will ensure that you can continue to make purchases without any interruptions.

3. Incorrect Card Information

If you enter incorrect information when making a transaction, your credit card may be declined. This could include entering the wrong card number, expiration date, or security code. It's important to double-check your information before submitting a transaction to avoid this type of decline. If you're unsure about any of the information on your card, contact your credit card company for assistance.

4. Fraudulent Activity

Credit card companies have advanced systems designed to detect fraudulent activity. If their system flags your transaction as potentially fraudulent, your card may be declined. This can be frustrating, but it's for your own protection. If you suspect that your card has been used fraudulently, contact your credit card company immediately. They will be able to help you resolve the issue and protect your account from future fraudulent activity.

5. Technical Issues

Technical issues can also cause a credit card decline. This could include a problem with the payment gateway, the merchant's system, or your internet connection. If you receive a decline code due to technical issues, try again later or contact the merchant for assistance. It's always a good idea to have a backup payment method, such as cash or another credit card, in case of technical difficulties.

By understanding the common reasons for credit card declines, you can take steps to avoid them and ensure that your transactions are processed smoothly. Whether it's keeping track of your spending, checking your card information, or contacting your credit card company for assistance, taking proactive measures can help you avoid the frustration and inconvenience of a declined credit card.

The Most Common Credit Card Decline Codes

As a frequent credit card user, it's important to understand the various decline codes that you may encounter when making transactions. Here are some common decline codes and what they mean:

Code 01: Call Issuer

This decline code means that your credit card company needs additional information to approve the transaction. It could be due to suspicious activity on your account or by entering incorrect information. It's important to contact your credit card company as soon as possible to resolve the issue. This decline code is often a precautionary measure taken by credit card companies to prevent fraudulent activity.

When contacting your credit card company, be prepared to provide them with any additional information they may need. This could include your full name, card number, and the details of the transaction you were attempting to make. Your credit card company may also ask you to verify recent transactions to ensure that there hasn't been any fraudulent activity on your account.

Code 05: Do Not Honor

If you receive this decline code, it means that your credit card company declined the transaction. It could be due to suspicious activity or an expired card. It's best to contact your credit card company to determine the cause of the decline. In some cases, your credit card company may have put a hold on your account due to suspicious activity. By contacting them, you can verify your recent transactions and ensure that there hasn't been any fraudulent activity on your account.

Code 14: Invalid Card Number

If you receive this decline code, it means that the card number you entered is incorrect. Double-check your card number and try again. Maybe it’s an older credit card that’s been worn down in your wallet and you miss a number, or that ‘3’ turned out to be an ‘8’. It's important to ensure that you're entering the correct card number to avoid any unnecessary declines. Rather than guessing your card number if you can’t remember it perfectly, it’s worth the extra minute it takes to validate your card number to ensure you avoid being declined. 

Code 51: Insufficient Funds

This decline code means that your card has insufficient funds to cover the transaction amount. You should check your card balance and, if there are enough funds, try again. If you continue to receive this code, it may be necessary to add funds to your card. It's important to keep track of your card balance to avoid any declined transactions due to insufficient funds. If you’re using a debit card, non-sufficient funds (NSF) can also come with overdraft fees, causing even more financial stress. You can check your card balance by logging into your online account or by contacting your credit card company. We recommend checking your balance often to ensure you’re on top of your personal finances, avoiding any other issues that may be of concern. 

Code 54: Expired Card

This decline code means that your card has expired and is no longer valid. You will need to obtain a new card from your credit card company. It's important to keep track of your card's expiration date to avoid any declined transactions. Your credit card company will typically send you a new card before your current one expires, but it's always a good idea to double-check the expiration date and request a new card if necessary – especially if this is an emergency card that only has specific purposes.

How to Prevent Credit Card Declines

Are you tired of experiencing credit card declines at the worst possible moment? Whether you're trying to make a purchase online or in-store, getting declined can be frustrating and embarrassing. Fortunately, there are several steps you can take to prevent credit card declines and ensure that your transactions go through smoothly.

Keep Your Information Updated

One of the most common reasons for credit card declines, and easiest to remedy, is outdated information. If your credit card company doesn't have your current contact information on file, they may not be able to reach you if there is an issue with your account. To prevent this from happening, make sure that your phone number, email address, and mailing address are all up to date. Whether you recently moved, changed phone numbers, or changed email addresses, it’s a good idea to keep your personal information up to date in general.

Monitor Your Account Balance

Another common reason for credit card declines is insufficient funds. If you try to make a purchase that exceeds your available credit limit, your transaction will be declined. To avoid this, it's important to regularly monitor your credit card balance and ensure that you have enough funds available for the transaction you want to make.

Set Up Fraud Alerts

Identity theft and credit card fraud are becoming increasingly common, and can result in declined transactions if your credit card company detects suspicious activity on your account. The FBI’s Melissa McBee-Anderson told us at MRC Vegas 2023 that only 15 percent of scams in the U.S. are reported. To protect yourself, many credit card companies offer fraud alerts that will notify you if there is any unusual activity on your account. By setting up these alerts, you can quickly identify and resolve any issues before they result in a declined transaction…or worse.

Use a Secure Payment Gateway

When making online purchases, it's important to use a secure payment gateway to protect your information from hackers and fraudsters. Look for the padlock icon in your browser's address bar to ensure that the website is secure before entering any sensitive information. Additionally, avoid making purchases on public Wi-Fi networks, as these are often unsecured and can leave your information vulnerable to attack.

By following these preventative measures, you can reduce the likelihood of experiencing a declined credit card transaction. If you continue to have issues with your credit card, don't hesitate to contact your credit card company for further assistance. They will be able to help you troubleshoot the issue and get your transactions back on track.

Summary

Understanding credit card decline codes is vital to both businesses and consumers. These codes offer key insights into why transactions are declined, allowing for improved response strategies and prevention measures. From insufficient funds to exceeded limits, and from suspected fraud to technical issues, these codes help reduce the frustration associated with declined transactions and serve as a powerful tool in the fight against fraudulent activities. So, the next time you encounter a decline, remember that these codes are more than just a random assortment of numbers and letters. They are a direct line of communication from the card issuer, designed to safeguard your financial well-being.