Top 14 reasons your debit card was declined

Debit cards let you make purchases and ATM withdrawals without having to pay interest. But your merchant or provider can deny the transaction for a number of different reasons. Knowing the possible causes ahead of time will help you avoid seeing the dreaded word – “declined.”

14 reasons your debit card didn’t work:

1. Not enough funds
2. Wrong PIN
3. Reached your withdrawal limit
4. It’s expired
5. Information doesn’t match records
6. Suspicious transaction
7. It’s an international transaction

8. Technical issues
9. A joint account holder deactivated the card
10. Your card hasn’t been activated yet
11. Card type is not supported
12. Issues with the vendor’s machine
13. Tap or chip malfunction
14. Damaged card

Reason 1: You don’t have enough funds

This is the most common cause of a debit card being declined, and one that you can easily avoid by keeping careful track of your spending money. Unless you have overdraft protection, most banks will not allow you to make a purchase or withdrawal that goes beyond your available balance.

Not having enough funds isn’t uncommon. Almost 3 out of 4 Canadians (73%) spend more than they save, each month, according to survey data from the Finder: Consumer Sentiment Survey Q2 2023.

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Reason 2: You’ve entered the wrong PIN

The personal identification number (PIN) you chose must be entered correctly in order for some transactions to be allowed. If you enter that number incorrectly, the transaction will automatically be declined.

Reason 3: You’ve reached your withdrawal limit

To help protect your funds, most financial institutions will have daily withdrawal limits on your accounts. This will often be a combination of ATM and purchases and can prohibit you from getting the cash you need.

Reason 4: It’s expired

Some debit cards also have expiration dates like credit cards. If yours has expired, it won’t be accepted at ATMs or for purchases.

Reason 5: The information you’ve entered doesn’t match your personal details on record

This is common with online purchases.The merchant takes extra precautions to verify your identity by asking for personal information such as the name on the card and your address. If you have entered anything incorrectly, you won’t be able to make your purchase.

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Reason 6: Your bank was suspicious of the transaction

Most banks reserve the right to decline any transaction they deem to be out of character with your normal spending or withdrawal habits. In most cases this can be cleared up at the register with a quick call to the bank, but it still could cause you some embarrassment. Some banks have security features in place and can be a little too safe and block authentic transactions.

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Reason 7: You’ve made an international purchase

Many accounts now offer Visa or Mastercard debit cards, which allow you to use them when traveling overseas. This is a convenient and secure way to make your overseas purchases and ATM withdrawals. Unfortunately, it doesn’t always work the way you intended, and you could find yourself without access to your money if your debit card is declined.

It appears most Canadians rarely consider the accessibility of ATMs when opening a new bank account. According to survey data from CST Q2, only 3% of respondents thought ATM accessibility was an important feature for a new bank account and yet, using an ATM is a key method for getting cash while travelling overseas. To find out more, read our tips on avoiding ATM while overseas.

Compare the best debit cards to use overseas

Reason 8: Technical issues

While there are many situations where you could be at fault for a declined card, that’s not always the case. Merchants and banks sometimes have issues processing debit transactions, even when you’ve done everything right. It could be due to their Internet connection, too many transactions processed at once, a power failure somewhere along the network or a handful of other reasons.

Reason 9: Your joint account holder deactivated your card

If you’ve opened a joint banking account with your spouse, partner or other family member they’re allowed to deactivate your debit card without permission from you. If this happens, you won’t be able to make purchases or withdrawing cash.

Reason 10: Your debit card has not been activated yet

If you’ve recently gotten a new debit card, it’s possible your card hasn’t been activated yet. Card activation is required by financial institutions as an added layer of protection. For example, if your bank mails your new debit card and someone else intercepts your mail, they won’t be able to use your card because only the card holder can activate it.

Reason 11: The card is not supported by the machine

Some ATMs and debit terminals don’t accept or support certain types of cards. You might encounter this problem especially if you have a debit card issued by a smaller bank or credit union.

Reason 12: Mechanical issue with the vendor’s machine

Sometimes the vendor might have a faulty debit machine, where the machine is broken or has an unstable connection. If that’s the case, the vendor will likely become aware of the issue after a series of cards (including yours) aren’t recognized by the machine.

Reason 13: Your cards tap capabilities or chip has malfunctioned

It’s possible that the tap mechanism or chip in your card has malfunctioned. That can happen over time and after continuous use.

Reason 14: Your card is damaged

If your debit card is old, it’s likely acquired some scratches and been bent over the years. A machine may not be able to recognize a bent card when you try to swipe it. Scratches on the chip or magnetic strip can also make it unreadable by the machine.

Compare different chequing accounts

If you’re thinking of switching up you’re chequing account, maybe looking for one with more features – like a larger monthly transaction limit – then check out some chequing account options in the table below.

Finder Score for chequing accounts

To make comparing even easier we came up with the Finder Score. Welcome offers, account fees and features across 60+ chequing accounts and 25+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the account - simple.

Read the full methodology

Who is most likely to be researching debit card declines?

Finder data suggests that men aged 18-24 are most likely to be researching this topic.

Declined debit cards FAQs

• Will I be able to fix a declined card problem while making a purchase?

  Depending on the reason, a declined debit card issue may be resolved within a few minutes. This could involve phoning your bank to verify transaction details or remove unnecessary security restrictions.

• How do I know the daily withdrawal limit?

  Read the fine print found on the financial institution’s website, or in the documentation given to you by the bank when the account was activated. There's a section that outlines how much you are permitted to withdraw daily.

• If a deposited cheque has not yet cleared the account, will I still be able to make a withdrawal of that money?

  Only if you have overdraft protection that's large enough to cover the amount of the withdrawal. A debit card can only access your available funds, not any transactions that are still awaiting authorization.

• How do I update my personal information on my debit card?

  If you're registered for online or mobile banking, you can go to your account overview and find your profile. Once you've located your information, there should be an option to update or change it. You can also call your bank's customer service line or visit a branch to speak with a representative who can help you change your information.