Budgeting Newsletter

Debit Card Declined, but I Have Money

Have you ever tried to make in-person or online purchases and have had your debit card declined? If you believe you have sufficient funds in your checking account you may be wondering, “why was my debit card declined, but I have money?”

Here you will find more information on declined debit card transactions, why they happen, and how you can quickly and efficiently rectify the issue. 

Why You May Have Experienced a Declined Debit Card Transaction 

Wondering, “why is my debit card declined when I have money?” There are several instances that may result in a declined debit transaction. If you are dealing with a declined transaction, it’s essential to find out the reason quickly so you can fix the issue. Below is more information on a few reasons your debit card may have been declined. 

Pending Transactions

You may have had a declined payment if your checking account is still processing pending transactions. When people make purchases via their debit card, the transaction takes time to process. While a transaction is being processed, it may not appear in a bank account’s debit records. During this time, the transaction would be considered pending. Sometimes an online transaction or an international purchase can take hours or even days to process. 

This means an account holder’s available balance may not reflect a pending transaction, making it appear that more money is available than there actually is. 

Insufficient Funds in Your Bank Account

Another reason for a declined debit card is if there are insufficient funds in your bank account. If you do not check your bank account records regularly, you may be out of touch with what your available balance is. And it’s easy to overestimate how much you spend and accidentally overspend. 

Your Card Type Was Not Accepted

Perhaps you are dealing with your debit card being declined because the vendor you are attempting to purchase from does not accept your card type. Some stores have restrictions on what types of cards they can process transactions. For example, you may shop somewhere that only takes Visas, which means you would not be able to successfully make purchases there if your debit card was a MasterCard. 

Your Account Was Flagged

If there is suspicious activity happening with your bank or checking account, your bank may freeze your account, which would result in a declined debit transaction if attempted. Suspicious activity that may indicate identity theft or fraud may be a series of bounced checks, purchases from new locations, or unusually large transactions. 

Overdraft Fees, Late Fees, Monthly Fees, or Other Unexpected Charges

If you don’t have overdraft protection, you are at risk of overcharging your bank account and acquiring an overdraft fee. These fees, along with the overdraft charge itself, may cause your bank account to go into the negatives. If transaction data comes back with information that your bank account is negative, your debit card may get declined if you attempt to use it. 

Debit Card Is Unactivated 

When account holders get a new bank account, they often have to call a number or visit a website in order to activate their account and debit cards. If you attempt to make purchases before doing this, the result may be a declined transaction. 

Your Card Has Expired

Another reason for declined debit card transactions is an expired card. On the front of every debit card is a date, usually with the phrase “Good Thru” before it. This date is when the card itself expires. Usually, most banks will send account holders a new card when the expiration date of their current card is on its way. However, if your bank does not offer this courtesy, it is up to you to keep track of your expiration date and request a new card.  

You Entered the Wrong Pin Information 

Most debit cards require the purchaser to enter a personal identification number or a PIN when making financial transactions. A debit card transaction will not go through if you enter the incorrect pin. 

What Should I Do if My Debit Card Is Declined?

What should you do if your debit card was declined? The first step would be to call your bank and ask to speak with a customer service representative. Let them know you need to know how to fix a declined credit card. They will look through your bank account and assess your most recent financial transactions. From there, the representative should be able to tell you why your debit card was declined. 

If your card was declined because of insufficient funds in your bank account, it’s important to come up with a payment method quickly. If the card was declined because of some kind of online banking issue, it might take up to 48 or 72 hours for the bank to finish processing and to fix their error. 

Ways To Avoid Having Your Debit Card Declined 

Maintaining good financial habits is important to avoid declined debit card transactions. Below are a few ways to better ensure you have enough money in your checking account and avoid declining your debit card. 

Stay Familiar With Your Financial Accounts

One essential tip to ensure you never have insufficient funds is to stay familiar with your bank account balances. You can utilize mobile banking conveniences and check your checking accounts and savings accounts whenever you like, at the touch of a button. When you are familiar with your current balances, you have a clear and accurate understanding of how much money you have to spend. From there, you can decide if you need to save money or if you have enough in your account before you make purchases. 

Spend Using Credit

One way you may be able to spend more money than you have in your bank account is if you make purchases using a credit card. Purchasing with a credit card is different from purchasing with a debit card. When you make debit transactions, the funding comes directly from your checking or bank account immediately. 

The funding comes from a pre-approved credit limit when you make credit transactions. Furthermore, credit purchases do not have to be paid back right away. The borrower usually has a month (usually referred to as a billing cycle) to start making payments on their credit card purchases. 

However, be aware that using a credit card to make your purchases can become a dangerous habit. To avoid massive credit card debt, try not to rely on your credit card for all of your regular purchases. 

Get a Prepaid Debit Card

You can also avoid insufficient funds by making purchases with a prepaid debit card. A prepaid debit card acts just like a regular debit card, but without taking money directly from the purchaser’s bank account every time they make a transaction. Instead, the purchaser pays a lump sum upfront, and the credited balance appears on a prepaid debit card. The cardholder can then make purchases up to the amount they originally paid. 

Keep Your Finances Organized

Along with staying familiar with your account balances, it is also a good idea to keep your finances organized. To make sure your financial situation is organized, create a budget. You can also come up with money-saving challenges like having a weekly or daily spending limit. This type of behavior can help you avoid impulsive or unnecessary spending.

How To Get Quick Money To Take Care of a Declined Debit Card

If you are currently dealing with a declined debit card and need to get some extra cash to rectify the issue immediately, there are a few choices you can pick from. 

With so many convenient mobile banking options available, getting a quick cash loan and transferring funds to fix a declined debit card has never been easier! Here are the two main types of loans to choose taking care of an insufficient funds issue. 

Unsecured vs. Secured Loans

You also have access to unsecured or secured loans. Unsecured loans, like an online payday loan, do not require collateral. However, payday loans can come with inconvenient terms and high-interest rates. You may also consider a secured loan, which requires collateral from the borrower. A car title loan is an example of a secured loan. Keep in mind that if you default on a secured loan, the lender may have the right to repossess your collateral. 

You may get a secured or unsecured loan from a private lender, bank, or credit union. The best way to get loans from banks is to have an ideal credit score and a clean credit history. If you have bad credit, you may still be able to get a good deal with a private lender. Or, if you meet a specific set of requirements, you may possibly get a loan from a credit union. 

One of the most convenient types of loans is a personal installment loan from a private lender. Installment loans are available with perks like: 

  • Competitive interest rates.
  • Quick, direct deposit within 24 hours or less.
  • Personalized payback schedule.
  • High or low loan amounts.

You can inquire for a personal loan with CreditNinja!