With crypto getting mainstream approval, crypto cards are gaining momentum as the most convenient way to utilise crypto for daily needs. It is rapidly becoming a go-to tool for crypto investors seeking real-world utility for their assets. From buying groceries to planning a vacation, these cards make it all easy. However, sometimes, this experience is not as seamless as it should be. The most frustrating and dreaded message that a user can receive is – “Your crypto card has declined due to insufficient funds.”
Whether you are paying online or at a physical store, a declined payment can happen due to multiple reasons, including verification issues, insufficient funds, network errors, and merchant restrictions. In our article today, we will try to figure out the reasons that may come between your crypto payments.
7 Common Reasons and Quick Fixes
1. Wrong Currency Format or Insufficient Balance
A crypto card declined error occurs due to the unavailability of funds or when there is a glitch in the crypto-fiat conversion process. Most cards typically convert crypto into the required fiat currency at the time of checkout, but if the balance is lower than the required amount or if the supported currency is missing, then the transaction is declined.
The problem: Our card declined our payment even though there were sufficient funds present in it.
The Reason: Crypto cards support ‘real-time conversion’, if your card has enough balance and yet it is declined, then there is a high chance that the amount available might not be enough to bear the conversion cost or the gas fees.
The solution: Keep track of your live crypto balance and always keep some extra percentage to cover rate fluctuation or gas fees.
2. KYC Not Completed
Most crypto cards are subject to strict KYC regulations. A user’s card remains restricted if this process is not completed, often causing transactions to decline.
The Problem: Your card is issued, but you are unable to use it to make the payments. We have already gone through the KYC process, and still can’t use our card.
The Reason: Your KYC is not complete or is pending for review. There could also be a chance that you overlooked the ‘Activate Card’ button in the app.
The Solution: Log in to your card provider’s application, like Cardaxo and look for your ‘Verification Status’ on it. If the status is pending, then please wait for confirmation. If KYC is incomplete, then do the needful to use the card successfully. Make sure your details match your ID. Get in touch with the support team if verification has been pending for more than 48 hours.
3. Card Limits Exceeded It’s Limits
Crypto cards like Cardaxo have spending costs set by the card issuer. These caps are often produced to comply with the anti-money laundering laws. Whenever a user hits these caps, they are welcomed by a ‘transaction was declined’ message.
The Problem: I still have a good monthly limit to spend, yet my card is declining my payments.
The Reason: You might have exceeded your daily spending limits set by the card or maxed out the single transaction limit.
The Solution: Go to your app and check for their limit dashboard. If there is a probability of upgrading your spending caps, then apply for it. If your purchase is large, then split your transactions or spend less!
4. Merchant Category Restrictions
Sometimes, a crypto card blocks a merchant due to them falling into high-risk categories. If your merchant falls under this section or location, then the card may trigger an ‘order decline’ error.
The Problem: I have sufficient crypto in my wallet, and still, it is showing a ‘ transaction was declined’. My merchant says they accept crypto payment, yet my card is declining.
The Solution: Check your card provider’s FAQ or user agreement, and search for their list of prohibited merchant categories. Some card issuers have regulatory policies for casinos and gambling sites. They might block your payment on these platforms. If you face something similar, then there is no workaround for it except changing your mode of payment.
5. Network Issues
There are times, although rare, when the global network, Mastercard or Visa, is down. Now, all crypto cards run on these networks, and if a regional gateway is overloaded, then, card may decline.
The Problem: My merchant is verified by my card provider, I have my KYC done, and I have crypto in my card, yet my payment is declining.
The Solution: Go to Google and search for ‘Visa status’ or ‘Mastercard status’, go to official status checking sites and check ‘is Mastercard down?’. If Visa/Mastercard is suffering a temporary downtime, then wait for 30 minutes and try again. If the issue persists, pay offline.
6. Technical Issues
There are times when the problem is due to a hardware issue at the payment terminal and not because of your card. This happens when the POS terminal used by the merchant is facing some kind of technical error and is unable to process the card’s data correctly. Usually, old POS devices are unable to support modern chip readers.
The Problem: Everything is smooth, and we are not facing any local downtime. My merchant is verified and accepts crypto cards, but still, my card is showing an error.
The Solution: Try a different method. Suppose you are paying using a physical card, then try paying through your phone app, and if you are paying through your phone app, try using a physical card. You can also use a digital wallet like Google Pay or Apple Pay. Check if there is any issue of currency mismatch, or ask the merchant to use a different POS if available.
7. Bank, App, or Exchange Issue
If your crypto card keeps getting declined, then it can also be due to a platform-level issue. Cards show errors when the platform undergoes maintenance or detects suspicious activities, and is blocking your card for security reasons.
The Problem: My Crypto.com card keeps getting declined. Even though it was working just fine a few hours back.
The Solution: Go to the card app or official social media handle and check if there are any maintenance alerts. Log in to your app and check if you have not frozen it manually. Get in touch with customer support and seek help.
How to Fix a Declined Crypto Card Quickly
This checklist, if followed diligently, can solve most of the problems before you move to customer support.
- Check funds- Checking the balance eliminates the possibility of running low on funds. Make sure you have enough to cover your transaction as well as any conversion fee.
- Log in to your card and check if it is not manually frozen.
- Ensure KYC is fully approved and verified from the card provider’s end. Also, check for the spending limits that your card holds.
- For online shopping, double-check the card number, CVV, and billing address. Make sure there are no mistakes in it.
- Check if the merchant is falling into the restricted category, and also check the Visa/Mastercard network status.
- If nothing works, then get in touch with customer support to see if this glitch f from their end.
Conclusion
A crypto card decline message can stem from a balance issue and can go as deep as merchant restrictions. Most of the time, the problems are quickly fixed and can make crypto spending a smooth and effortless process.
For More – Best Crypto Card: Your Complete Guide
For Crypto Related News – Candypulse
FAQ’s
Why is My Crypto Card Declining?
There can be multiple reasons that might be triggering a decline in crypto. Majourly, it can be due to insufficient funds, or hitting the daily spending limit. It can often see a decline due to pending KYC or due to network issues with Mastercard/VISA.
Why Can’t I Buy Crypto Using My Card?
Crypto purchase may be declined considering compliance reasons. If your card issuer or bank is not licensed to process such transactions at the exchanges, then they will be declined, considering crypto purchase lies under the high-risk category.
Why was My Transaction Declined?
A transaction is usually declined when your card issuer fails to receive approval from Visa/Mastercard due to a mismatch in security details, CVV or PIN, etc.