Nowadays people can go cashless to make a purchase or pay for services without using credit cards, as there are now debit cards and mobile payment solutions. Anyone who has a savings or checking account knows what a debit card is, as it is also used as an automated teller machine (ATM) card. Although payment transactions are directly deducted from the deposit balance of a card holder, there could be instances when the Point-of-Sale (POS) machine of a commercial establishment declines processing of debit card payment for some reason or another.
Possible Reasons a Debit Card is Declined as Payment Instrument
There are some conditions with which debit cards work, when presented as a payment instrument; or when using the card to withdraw money from automated teller machines. Be in the know that if a debit card is to be used for the first time, it must first be activated by the bank in which the deposit is maintained.
Sufficiency of Account Balance – The first condition of course is the sufficiency of the deposit balance, because as a rule, overdrafts or negative balances in any deposit account is not allowed.
Network Connections and Accreditations – ATMs will process only bank cards linked to the network of the banking system to which the issuing bank is connected. Similarly, debit cards are acceptable as payment only in commercial establishments that have accreditation with a payment network system like Visa or Mastercard, or both. It is therefore important to first check the accreditation of the store or establishment.
Daily Withdrawal and Purchase Limits – Banks usually impose a daily purchase limit, similar to the daily withdrawal limit observed when withdrawing cash via ATMs. Take note that the limit is based on the daily total, regardless of the variety and number of stores from which purchases were made during the day. Once the limit has been reached, the card holder will have to pay cash or use a mobile payment app in paying for any other purchases he or she needs to make for that day.
Frozen Account Due to Notice of Garnishment – There are cases when a card holder is not aware that his deposit account has been fully or partially frozen in connection with a notice of garnishment received by the bank. A writ of garnishment is a court order issued by a judge, in favor of a creditor seeking payment of a debt owed by a bank depositor named in the notice.
Expired or Physically Defective Debit Card – The debit card may have already expired or the card itself has some physical defect that makes reading of necessary information impossible for the POS machine.
In knowing some of the most common reasons why commercial establishments decline a debit card as mode of payment, the next logical step is to know how to fix a declined debit card in order to complete a payment transaction. Apparently, reasons like a garnishment or an expired/defective card necessitates coordinating with an authorized representative of the bank.