CHARLOTTE, N.C.–More than one-in-five Americans are reporting they have had a credit card declined in the past year, according to a new survey.
CompareCards.com said it found 22% of consumers said they have gotten a “transaction declined” message in the past 12 months. Not surprisingly, nearly three-quarters said they were “embarrassed” when it occurred.
Among the Findings:
- 46% say their card was declined just once over the past year; 35% say it happened twice, 15% said three times, 2% said four times and 1% said five or more times.
- When asked why they think their card was declined, 32% thought they exceeded their credit limit, 29% cited fraud protection, 16% blamed technological errors, 16% said their card had expired, 14% missed a card payment, 8% said a gas station or hotel put a hold on their account, 7% said an international purchase was declined, and 12% said they weren’t sure or gave another reason.
- In-store purchases were slightly more likely to result in a card decline than online purchases, with 57% saying their credit card was declined in-store and 50% said it was declined when making an online purchase. Five percent said it was declined somewhere else.
- To resolve the situation, 45% paid with a different card, while 30% paid with cash instead. Twelve percent didn’t make the purchase, and 8% asked the card issuer for a credit card increase. Five percent said they did “something else.
Other Findings
Who is most likely to have their card declined? According to CompareCards.com, it found those who were declined included:
- Gen Z: 51%
- Millennial: 30%
- Gen X: 23%
- Baby boomer: 6%
- Silent Generation: 4%
“It makes sense that younger folks would be more likely to have their card declined,” said CompareCards’ Chief Industry Analyst Matt Schulz. “Their credit limits are likely lower, so it’s easier to max out a card,” he said. And given that exceeding their credit limit (32%) was the most common reason survey respondents said was why they may have been declined, it makes sense.
Also worth noting: CompareCards.com said it found men were more likely than women to say their credit card was declined.