Why Was My Card Declined?

Woman in coffee shop looking at declined credit card

Have you ever had a transaction with a prepaid card declined? Let’s face it: we all know there are tons of issues associated with using prepaid gift cards. And we’re not just talking about the fees and expiration dates that contribute to millions of gift card funds going unused every year. We’re talking about the actual transactional issues people experience once they try to use those funds! Here are some of the most common reasons your card might be declined (if and when you remember to use it).

Reasons Prepaid Card Transactions Decline

  • Preauthorization Charges: These charges are designed to protect restaurants, bars, and even hotels from fraud and insufficient funds. But they can seriously hurt patrons attempting to use prepaid gift cards. Preauthorization places a hold on the value of products or services rendered and then a second charge for that same amount plus the gratuity. While the duplicate charge would eventually drop off, it does limit prepaid card users if they do not have enough on the card to temporarily cover both charges.
  • Split Payments: Many online vendors, like airlines, don’t allow split payments. Because of this, prepaid gift card funds get declined, and subsequently go unused.
  • Card Issuer Requirements: some prepaid gift cards have zip code, PIN, or CVV requirements that the vendor does not recognize. If the vendor does not prompt for this information during the transaction, the card will decline regardless of funds available. 

Places You Might Experience Issues

A few of the major retailers (besides restaurants and airlines) that might present these problems include:

Make A Change

Prepaid2Cash developed a solution for this problem. Our app enables users to convert their gift cards into cash in as little as 24 hours! Save yourself the trouble of worrying about declined cards. Convert your card to cash, and add a little peace of mind to your next purchase. Download the app today!