Why is my credit card declined when I have money?

Your credit card is knocked back for a transaction, and you're wondering: Why is my card declining even though I have funds?

We're going to be straight with you: the main reason why cards get declined is because you don't, in fact, have funds. Usually, a direct debit has been processed or you've purchased something pricey you forgot about, and your balance is near or over the limit.

If you've checked your balance in the app or online banking and you're certain you have enough credit, these are the other reasons why your card has been declined (and what you can do about it):

1. Technology outage

Most modern EFTPOS machines use mobile data networks or WiFi to connect to the internet to process transactions and to communicate with the banks to verify and authorise your transactions.

If there's a general system outage – like the infamous Optus outage of November 2023 – or if there's an issue processing the transaction at the point of sale or with the bank's server, the transaction may be declined.

Solution:

You may be able to proceed with the transaction if you sign as authorisation slip. If it's a wider outage that impacts a number of different retailers, the merchant may stop processing card payments in the short-term while the issue is sorted. In that case your only option is to pay cash.

2. Human error

If the transaction relies on you typing in the individual credit card numbers, there's a chance you've transposed the digits or entered the expiry date incorrectly.

It could also throw up an error message if you've selected the wrong card type (e.g. you select Visa, then type in a Mastercard account number).

Solution:

The error message won't always tell you what went wrong, so check the number, full name, expiry date, card type and CCV on the back to make sure all the details are correct, and submit the payment again.

3. Overseas security measures

If you're planning to use your credit card overseas when you're travelling, contact your card provider to notify them of your travel dates and where you're travelling to.

If your issuer spots an international transaction on your account without you giving them a heads up, they might suspect that your card is being used for a fraudulent transaction and decline the purchase.

Solution:

Waiting on hold for your bank is no-one's idea of fun, but letting them know before you travel can prevent you having card access issues if they block your card.

4. Suspected fraud

If your credit card issuer notices suspicious activity on your account, it may block your account for security reasons. For example, if you usually only use your card for small, everyday transactions and then use your card to make multiple large purchases in one day, your issuer may put a freeze on your account and decline the transaction.

If you're planning to use the card to make a big purchase or another transaction that may be considered unusual, notify your card issuer so they're aware in advance and don't freeze your account.

Solution:

Your bank will usually contact you if this happens, and they'll quickly unfreeze the account if you confirm it was a legitimate transaction made by you.

5. Machine error

Sometimes machines have bad days too.

Solution:

The tried and true 'turn it off and back on again' trick can be enough to reset the system back to working order. Ask the retailer to process your transaction again and if it still doesn't process, use a different payment method.

6. Daily account limits

Some credit cards set a daily spending limit and your card will be declined if you spend beyond this. For instance, your total credit card limit might be $10,000, but you have a daily spending limit of $2,000.

Unfortunately, many people first discover this issue on the day that they try to spend more than their daily limit, which can be frustrating if you need to make an urgent payment.

Solution:

If there is a daily limit in place on your account, you can usually change this in internet banking. Otherwise, call your credit provider directly.

Why is my bank card declining payments: codes explained

When your card is declined in a store, the EFTPOS machine receives a code from the bank handling the transaction that describes why the transaction wasn't approved. For example, here are some Commonwealth Bank credit card declined codes:

Terminal response code	Description
54	Expired card
55	Incorrect PIN
57	Transaction not permitted
59	Suspected fraud

Keep in mind that codes can be different between banks and EFTPOS machines. For example, the St.George declined code 05 means "Do Not Honour", which covers suspected fraud, stolen or expired cards, insufficient funds and invalid CVNs (card verification number).

Who to contact when your credit card transaction is declined

Contact your card issuer directly to confirm why and resolve the issue. We've provided a list of contact details for some of the credit card issuers in Australia in the table below.

Credit card provider	Phone number	Availabilities
ANZ	13 13 14	24/7
Bank Australia	13 28 88	Monday to Friday - 8am to 8pm Saturday - 9am to 2pm
Bankwest	13 17 19	24/7
Bank of Melbourne	13 22 66	Monday to Saturday - 8am to 8pm
Bank of Queensland	1300 55 72 72	24/7
BankSA	13 13 76	Monday to Saturday - 8am to 8pm
Coles	1300 306 397	24/7
Commonwealth Bank	13 22 21	6am to 10pm
Great Southern Bank	13 32 82	Monday to Friday - 8am to 8pm Saturday - 8am to 4pm
Macquarie Bank	1300 150 300	24/7
NAB	13 22 65	Monday to Friday - 8am to 7pm Saturday to Sunday - 9am - 6pm
Qantas Money	1300 992 700	24/7
St.George	13 33 30	Monday to Saturday - 8am to 8pm
Virgin Money	+61 2 8225 0838	24/7
Westpac	1300 651 089	24/7

Frequently Asked Questions

• What does it mean when your credit card is declined?

  When your credit card is declined, it means the transaction has been refused by the issuer. This could be due to insufficient balance available to spend, incorrect details, expiration, fraud detection, or a block on the card.

• How do I fix my declined card?

  To fix a declined card, first, verify that your card details are correct. Then, check your credit limit, card expiration date and whether there are any blocks or holds on the card. If issues persist, contact your card issuer for assistance.

• What happens if you get declined for a credit card?

  If you get declined for a credit card, you can contact the provider and ask for more information as to why it was rejected. It could be worth checking your credit file to see what your score is and if there are any issues with late payments or unpaid debts that might impact your score. Your credit score is not usually affected right away if a credit card application is declined, although frequent applications can hurt your credit score. Every credit card provider uses a different criteria and has different policies, so being declined by one lender doesn't mean you will be declined by other providers. So, you may wish to apply again with a different provider.