There can be many reasons behind the failure of a debit card transaction, even when there are enough funds in the bank account. Let’s look at some of the most common reasons.
Technical issues are often the primary reason for declined debit card transactions, even with sufficient funds. Sometimes, banks and payment networks experience temporary system outages. Such interruptions can also occur if there’s a technical problem between the merchant’s card terminal and the merchant acquirer. Generally, these errors last for very short periods, often fractions of seconds.
Another reason for transaction decline can be various card issues. For example, if the debit card is expired, the transaction will not go through. Similarly, if the card is damaged or the digits on it are not clearly visible, transactions can fail. Banks implement proactive measures to prevent card misuse and may block or freeze cards if they detect fraudulent activity. Blocked or frozen cards cannot be used for transactions until they are reactivated.
In cases where the merchant manually submits debit card information via a virtual terminal or retail credit card terminal, human error can also lead to transaction declines. If the merchant enters the incorrect credit card number, expiration date, or verification code, the transaction may be declined. Additionally, depending on the limitations of the merchant account, some payment methods may automatically get declined. If the merchant account is not set up to process debit cards, transactions will naturally not go through.
Some debit cards may have daily transaction limits, and if the user exceeds the daily spending or withdrawal limit, transactions will not go through. Many debit cards also have geographical restrictions, limiting transactions to specific countries.
