Prepaid cards can be declined because you don’t have sufficient funds in your account, the card hasn’t been activated, the merchant doesn’t accept the network’s cards, or you have exceeded your spending limits. Any information you provide to the merchant must also match what’s on file with the prepaid card issuer. Continue reading to learn more about why a prepaid debit card could be declined.
Top Reasons Prepaid Cards Could Be Declined
- The card hasn’t been registered or activated. Some prepaid cards require you to activate them before they can be used to make purchases or withdraw cash. If you wish to reap the full benefits of a prepaid debit card, you’ll eventually have to register the temporary card you purchased. In return, you’ll be issued a personalized card, which you’ll also have to activate before making purchases. Upon activation of the personalized card, the temporary card ceases to function.
- The card doesn’t have sufficient funds for the transaction. You must have enough money in the prepaid account to fully cover any requested transaction. You cannot overdraw a prepaid account.
Note that your balance could be lower than you think due to a hold placed by a merchant. When you pay with a card, hotels, rental car companies and gas stations commonly place a hold on your account for your estimated total, which could be higher than your actual total. The hold will be subtracted from your card’s balance until it is released by the merchant. - The billing address provided to the merchant doesn’t match the one on file. When a billing address is required for an online purchase, it must match the address on file with the prepaid card company in order for the transaction to be approved. You’ll be required to provide an address when you register your prepaid card.
- The merchant doesn’t accept cards from that network. For example, if a merchant doesn’t accept American Express and you attempt to pay with an American Express Bluebird prepaid card, your transaction will be declined.
- The card has expired. Check the front and back of your prepaid debit card for an expiration date. If it has passed, the card will no longer work.
- You may have exceeded your daily or monthly spending limits. Some prepaid debit cards place limits on the amount of money you can spend or withdraw per day, per month, or both. Once you reach this limit, you’ll have to wait the specified amount of time before you can use your card again.
- The transaction violates the terms of your agreement with the prepaid card issuer. You may not use your prepaid debit card to purchase illegal goods or services, for example.
- You’ve entered an incorrect PIN. To withdraw cash or make some purchases with your debit card, you’ll need to enter your account’s PIN. If you enter an incorrect PIN, the transaction will be declined. As a security feature, your card will be declined even if you enter the correct PIN after an incorrect PIN has been entered too many times in a row. This is meant to prevent unauthorized use of your account.
Contacting the card’s issuer is always a good first step toward resolving a declined prepaid card. Call the number on the back of your card to find out for sure why your prepaid card has been declined and to get it working again.
This answer was first published on 10/06/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
2. Incorrect payment information entered. Even if your prepaid card has sufficient funds, entering incorrect payment details during online checkout will result in a declined transaction.
Why does my card keep getting declined even though I have money? ›
You've reached your daily purchase limit. Your debit card expired or is inactive. The bank finds the purchase suspicious. Your card is suspended.
Can you be denied a prepaid card? ›
In most cases, you won't be declined for a prepaid card. In general, anyone can buy and use a prepaid card. Some providers require you to register your card when or after you purchase it by asking you to provide certain personal information.
How do I stop my card from declining? ›
Here's a quick rundown on a few things worth doing to avoid an unnecessary decline:
- Stay below your credit limit. If you max out your credit card, any purchases you attempt to make with it will most likely be declined. ...
- Sign up for account alerts. ...
- Pay your balance on time. ...
- Notify your issuer of any travel plans.
But there are some downsides to consider when using them. You can't build credit with them and the money you load onto them won't earn interest. And many prepaid cards lack standard banking services, such as a way to withdraw or reload cash for free.
Why is my vanilla prepaid card being declined? ›
If the card is not activated , it will not work for any transactions . Second , check to see if the card has enough funds to cover the purchase you are trying to make . If the card does not have enough funds , it will be declined .
Why is my Visa prepaid card not working? ›
The most common reasons are that the card hasn't been activated, the cashier is running the wrong type of transaction, the dollar amount being charged is greater than the card's balance or the credit card processing machine is bumping up the charge amount to either place a hold on the card or to allow for a gratuity.
What are the restrictions on a prepaid Visa card? ›
You may only use the Card when there is a balance available on the Card and only up to the amount left on the Card and any transaction fee due. All use at an ATM or for purchases will be deducted from your Card, including any transaction fees. Any transaction made that exceeds the available balance will be declined.
How do I get my prepaid card to work? ›
Visa Prepaid cards are easy to use
All you need to do is: Activate it online or by phone. Load it online or in-person. Set up direct deposit.
Is it bad if your card declines? ›
Having a credit card declined can be embarrassing and inconvenient, but it won't affect your credit score. However, some issues that could cause a credit card to be declined, like late payments and high balances, do affect your credit. You can reduce the chances that you'll encounter this by: Paying balances on time.
If your transaction was declined, most banks will still hold the charge as “pending.” Most pending charges disappear in around 5 days or less, though some institutions ask cardholders to allow up to 7 days to process charges.
Why does it say insufficient funds when I have money? ›
1. If you have recently funded your account, it's possible that the funds did not fully clear into the account when you attempted to make a payment. 2. If you are using overdraft or credit facilities on your account.
Why does my cash card keep declining? ›
Verify the card number, expiration date, CVV code, and billing address to ensure accuracy. Check for Potential Fraud Alerts: Cash App prioritizes customer security and may decline transactions if potentially unauthorized activity is detected on your account.
Why does my prepaid keep saying failed? ›
If your prepaid meter has insufficient credit or there is no credit at all, it will disconnect the power supply automatically, which will lead the meter to display a ''failed'' message on its screen.
