3 Ways to Prevent False Declines on Your Credit Card Purchases

Nobody likes having their credit card declined, especially when the purchase is legitimate. To prevent false declines on your credit card purchases, there are several things you can do. In this blog post, we’ll cover three ways to prevent false declines and help ensure that your credit card purchases are approved. 

What are False Declines?

False declines, also known as ‘friendly fraud’, is when a legitimate credit card purchase is declined by the merchant due to incorrect information or suspicion that the cardholder is attempting the fraudulent activity. It’s a common issue for both cardholders and merchants, as it leads to frustration and lost sales. False declines can be especially detrimental for small businesses that rely on credit card payments. Fortunately, there are several ways to prevent them.

False declines occur when a transaction is declined despite there being sufficient funds in the cardholder’s account or when the purchase is deemed suspicious for security reasons. In some cases, banks or credit card companies may not recognize the merchant or geographic area in which the transaction is taking place. This can lead to the transaction being flagged as potentially fraudulent, and consequently, the purchase may be declined. Additionally, if a customer has exceeded their credit limit, the transaction will be declined regardless of the merchant’s decision.

Regardless of the cause, false declines can be a major inconvenience for customers and merchants alike. Not only does it add time and hassle to make the payment, but it can also put a strain on customer-merchant relationships. To reduce the risk of false declines and ensure seamless payments, there are several steps you can take to prevent them. 

Check your credit card limit 

One of the most common causes of false declines is when a credit card purchase exceeds your card’s credit limit. To ensure that this does not happen, it’s important to check your card’s limit before attempting to make a purchase.

You can check your credit limit by calling your credit card company’s customer service number or visiting its website. Once you know what your credit limit is, you can plan your purchases accordingly to ensure that they are within your budget. It’s also a good idea to keep track of how much you’ve already spent and the balance remaining in order to avoid exceeding the limit. 

Another way to avoid going over your credit limit is to use a budgeting app or website. These services allow you to track your spending and help you stay within your budget. This can help you prevent false declines and ensure that you don’t exceed your credit limit. 

By taking the time to check your credit limit, you can reduce the chances of being declined for purchases due to an excessive amount. With proper planning and monitoring of your credit limit, you can help ensure that all of your purchases are approved and avoid any inconvenience or embarrassment associated with a false decline.

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 Notify your bank of upcoming travel 

If you plan to travel, it’s important to let your bank know. They may flag any large purchases as fraud if they’re not expecting them, resulting in a false decline. To avoid this problem, contact your bank prior to your trip and explain your plans. Let them know the cities you’ll be visiting and how long you’ll be away. Your bank may be able to place a note on your account so that any purchases you make while away won’t be falsely declined. You may also want to consider setting up a low credit limit for the duration of your trip to reduce the risk of false declines. 

Use your credit card at established businesses 

When it comes to preventing false declines, one of the most effective methods is to use your credit card at established businesses. This means shopping at recognizable companies that have a good reputation and track record for providing customers with quality products and services. By limiting your purchases to reputable merchants, you can significantly reduce the chances of your credit card transaction being declined due to potential fraud. 

In addition to limiting your purchases to reputable merchants, you should also be sure to read customer reviews before making any purchase. Customer reviews can provide valuable insight into the quality of products and services provided by a particular merchant, as well as their customer service capabilities. Reading customer reviews can help you make an informed decision about which business to shop with and help protect you against potential false declines. 

Finally, when it comes to using your credit card at established businesses, make sure you pay close attention to the terms and conditions of each transaction. You should ensure that you understand all the fees and charges associated with your purchase before entering into any agreement. Additionally, always be sure to check the privacy policy of each business before entering into any agreement or providing any personal or financial information. Taking the time to review all details and policies before finalizing a transaction can help reduce the risk of experiencing false declines and other fraudulent activity.