I saw this happen to someone at the supermarket a week ago and you can feel the pain. The shock comes across person’s face as the clerk asks for another form of payment. They default to their checkbook and you have to wonder if the check will clear. Either way, you can feel the pain.
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Having a card denied happens more often than you may think.
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In fact, a just-released survey from com found that 12% of credit and debit card users had at least one card declined in the past year.
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That’s roughly 26 million people who suffered through having a card turned down, based on the number of Americans who use at least one debit or credit card.
Now 12% feels like a high number, but when you consider that 8-10% of accounts can fall into delinquency, it is at least directional. It is likely that those who get declined might attempt to use the card again, so the numbers may not be pristeen.
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For 32% of those who had a credit card or debit card denied, the reason was that the account lacked sufficient funds. That number is nearly 40% when you look at just credit card users who had reached their credit limit.
Perhaps a false-positive on a Fraud system?
Either way, it is an experience to forget.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
Read the quoted story here
