Credit Card Declines On The Rise

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fffresh
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Credit Card Declines On The Rise

Postby fffresh » Tue Jan 27, 2009 7:29 pm

With credit lines being restricted and creditors become more conservative with authorizing purchases, the decline rate on credit card transactions appears to be rising. This is based on opinion as since approval/decline statistics are non-public information, however it does appear to be the case.

This is effecting the top cardholders also. Take multiplatinum Rapper Fabolous whose cards were declined one after another while enjoying a night out. Reportedly card after card was declined, up until the fifth credit card failed, when a member of his entourage attempted a diversion by starting a fight.

Fabolous Feeling Credit Crunch, Cards Declined During Night Out? | BallerStatus.com | NEWS

American Express who was previously known for never declining any reasonable transaction, has been known to be declining transactions frequently now.


Extreme z28
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Too true

Postby Extreme z28 » Wed Jan 28, 2009 10:43 am

I can attest to the rise in declines. I had my Capitol One Platinum MasterCard declined in Vegas earlier. I was buying something and the place didn't accept Am Ex or Discover so I pulled out the Capitol One, now on a side note I carry a money clip so I usually only carry 3 cards with me. The Capitol One was declined at which point I told them to run it again (I had a balance of maybe $200 on a $25000 credit limit). They told me that it was denied. I called them at which time they told me that since it was an out of state transaction they had declined it. That if I was going to be going out of California I had to give them a 24 hour notice of where I would be. I told them exactly what I thought of this and that they weren't my mother that I had to let them know every step I take. On a side note I haven't had any problems with my Am Ex cards they have all worked fine for me and my Am Ex Platinum is still my #1 go to card in all situations.

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Postby Mogul of Pineapples » Wed Jan 28, 2009 1:27 pm

Capital One wants you to call and get permission to use your card outside of your home state? That is plain nuts. What if you travel frequently? Do they expect you to have the time or want to take the time to call them up to let them know you're going somewhere?

If this is the case I would recommend you stop using your card in protest of it. Write them a letter if you have the time to let them know why. Don't close out the card because it's a good credit line but I wouldn't use it for any significant amount of purchases.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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Postby magyar1045 » Wed Jan 28, 2009 3:33 pm

I never had any trouble using my CapOne in Oregon or Nevada.

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Postby Cucumber » Thu Jan 29, 2009 1:40 am

I've heard (but don't know if it's true) that Cap One and Chase have the highest credit card decline rates. I mean most of the time they are doing it because they are over cautious of it being fraud......but still :eek:

I have a good friend with a Southwest Rapid Rewards Visa (Chase) and they are ALWAYS flagging that thing for potential fraud at the stupidest most innocent places. Then he can go out of the country and use his credit card in foreign third world countries and it doesn't get flagged......go figure! :rolleyes:
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Postby fffresh » Fri Jan 30, 2009 10:26 am

Banks are only alienating customers when they make it difficult to make a purchase. Fraud preventative measures can be taken to a reasonable degree but if that were truly their concern they would implement pin based credit cards instead of declining/accepting transactions based on their criteria of whether or not it could be fraudulent.

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Postby Mogul of Pineapples » Sat Feb 07, 2009 3:00 pm

USA Today reported yesterday that credit card delinquencies are hitting a "record high" now. It was a 3.75% chargeoff rate on credit cards in December for banks and they expect it to go up to 9% by the end of year. Historical credit card chargeoff rates typically mirror unemployment so the more jobs that are lost the more bad credit card debt we are going to see.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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Postby Floppster » Wed Mar 04, 2009 6:50 pm

Extreme z28 wrote:I can attest to the rise in declines. I had my Capitol One Platinum MasterCard declined in Vegas earlier. I was buying something and the place didn't accept Am Ex or Discover so I pulled out the Capitol One, now on a side note I carry a money clip so I usually only carry 3 cards with me. The Capitol One was declined at which point I told them to run it again (I had a balance of maybe $200 on a $25000 credit limit). They told me that it was denied. I called them at which time they told me that since it was an out of state transaction they had declined it. That if I was going to be going out of California I had to give them a 24 hour notice of where I would be. I told them exactly what I thought of this and that they weren't my mother that I had to let them know every step I take. On a side note I haven't had any problems with my Am Ex cards they have all worked fine for me and my Am Ex Platinum is still my #1 go to card in all situations.


+1 here
Amex is the way to go. I cancelled my Cap1 quite some time ago. I am not supporting companies sending the majority of their jobs overseas. I use Amex for pretty much everything however I always try to purchase $15 or more before I pull the card. The stores need to make some money as well.

Also I believe that Amex by far has the best customer service.
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