Seven causes of credit card blocking
Also included are 7 tips for dealing it when it occurs to you.
You are overjoyed when your credit card company prevents a thief from charging unauthorised costs to your card.
But what if they believe you to be the thief?
7 causes of credit card blocking
Credit card issuers are regularly stepping up their anti-fraud efforts, depending on sophisticated computer algorithms to identify questionable transactions, in an effort to stem the stream of fraud losses, which totaled $6.89 billion in 2009.
The problem is that what a computer sees as a red signal can actually be you trying to make a routine purchase.
Then, out of nowhere, your card is refused, leaving you angry and upset.
What then does your card company find problematic?
anything that is unusual.
According to Robert Siciliano, a McAfee consultant and identity theft specialist located in Boston, "the credit card companies — Visa, MasterCard, American Express, Discover — all have their own proprietary technology that check for irregularities in your spending history."
Siciliano believes that in order to assess the possibility that a charge is genuinely being made by you, each transaction should be automatically evaluated for up to 200 distinct data points, including your location, your typical purchases, and your monthly spending.
Your card will be blocked and your subsequent purchase will be refused if the analysis is incorrect.
What results in a block?
Card issuers won't discuss specific red flags in the open because, as Siciliano notes, "That'll only give the bad people an edge."
But according to professionals and careless cardholders who have encountered a block, these purchasing practises could cause problems.
You're making purchases at unfamiliar stores. "I've received calls from my card company saying, 'We've detected unusual activity.'"
Although it wasn't unusual, Denise Richardson, a certified identity theft risk management professional and the author of "Give Me Back My Credit!," notes that it was a different pharmacy from the one she usually visited.
swiftly making a number of purchases.
Janis Badarau, of Lavonia, Georgia, occasionally visits three supermarkets in a row to obtain what she wants and benefit from specials.
However, a few months ago, she was so quick that her card had already been denied by the time she swiped it at the third store.
When I called the bank once I got home, they informed me that going to three stores in a short period of time.
charging a little fee first, then a large fee.
Sometimes thieves will use a stolen card to make a little test purchase, like a song from iTunes, before making a much larger, three-digit payment.
Your own small-big purchasing pattern could cause your card to be refused.
shopping outside of your base.
That happens a lot while you're relocating, in particular.
According to Siciliano, "If my billing address is Massachusetts and I'm purchasing a washer and dryer in Idaho, that's an abnormality, as I wouldn't purchase a washer and dryer in Idaho if I lived in Massachusetts."
charging for travel costs.
Any purchase while driving, including gas and meals from a restaurant, may result in a block.
Even if that has always been the case for travellers visiting other countries, it now also occurs at home.
According to Traci Coulter of New York City, "Once my vacation to Los Angeles alerted it and I spent 20 minutes checking transactions."
She was informed that the normal travel charges of "a taxi, a fee at the airport, in-flight Wi-Fi, and a rental vehicle hold" were what had resulted in the card being denied.
purchasing on the same day but in other locations.
Janet Gillis, of Tampa, Florida, used a card to withdraw cash from an ATM while on a cruise, and she later made a purchase in Belize.
Modes:
Fluency
For the rest of the trip, her card was declined. "Apparently, the ATM on board the ship is registered to a Miami location, and several hours later, I was purchasing something in Belize. To them, it looked suspicious because the transactions happened so close together," says Gillis. Online purchases to merchants in different parts of the world can trigger the same flag. Dealing with billing issues. When Siciliano wanted to make an addition to an online purchase, he contacted the company, but the second transaction they tried to process was declined. The card issuer "thought that the merchant was taking advantage of my card number." How to handle a block When your card company suspects suspicious activity, sometimes you'll get an email or a phone call asking you to verify a purchase.
Her card was declined for the remainder of the trip.
"Apparently, the ATM on board the ship is registered to a Miami location, and I was buying something in Belize several hours later.
Because the transactions occurred so close together, it appeared suspicious to them "says Gillis
Online purchases from merchants in different parts of the world can raise the same flag.
Taking care of billing issues.
When Siciliano wanted to add something to an online purchase, he contacted the company, but the second transaction they attempted to process was denied.
The card issuer "believed the merchant was abusing my card number."
How to deal with a stumbling block
When your credit card company suspects suspicious activity, you may receive an email or a phone call.
Other times your card is simply declined, with no advance warning and no information why, and it's up to you to call your issuer and sort out the problem. Follow these tips to minimize the hassle (and humiliation) of a blocked card:
Carry backup credit cards. You'll be able to offer another working card while you sort out the problems with the first. Keep your card's contact info handy. "Have your credit card company's toll-free number as one of your phone numbers in your mobile," recommends Siciliano. "If a card is declined, you know who to call." Tell your card company when you're traveling. Advance notice doesn't always keep your travel purchases off the "suspicious activities" list, but card companies recommend it. In the same vein, "Give your creditor your cell phone number," says Richardson. "If they only have your home number on file, that can be a problem, too." Use a prepaid card. When you travel, a preloaded card gives you the convenience of credit without the hassles. (You do lose the protection, however, so that convenience comes with a price.) Get texts. According to Chase representative Gail Hurdis, customers can sign up to receive a text message within minutes of a flagged transaction and can indicate by text whether they recognize it. If they do, the account is updated and the transaction cleared instantly. Provide a new address. When you move, quickly update your billing address so your card company recognizes your new home base. Ask for compensation. When Linsey Knerl's card was erroneously declined, the store cashier refused to accept any other card, forcing Knerl to abandon a cart full of stuff. The Tekamah, Neb., woman wrote a letter to her issuer expressing her disappointment. "The credit card company actually gave me a rewards points bonus for my troubles -- enough to buy a plane ticket the next time I traveled!" she says.
Annoying as it can be to get blocked by mistake, remind yourself that it's a sign that your credit card company's got your back.
Also included are 7 tips for dealing it when it occurs to you.
You are overjoyed when your credit card company prevents a thief from charging unauthorised costs to your card.
But what if they believe you to be the thief?
7 causes of credit card blocking
Credit card issuers are regularly stepping up their anti-fraud efforts, depending on sophisticated computer algorithms to identify questionable transactions, in an effort to stem the stream of fraud losses, which totaled $6.89 billion in 2009.
The problem is that what a computer sees as a red signal can actually be you trying to make a routine purchase.
Then, out of nowhere, your card is refused, leaving you angry and upset.
What then does your card company find problematic?
anything that is unusual.
According to Robert Siciliano, a McAfee consultant and identity theft specialist located in Boston, "the credit card companies — Visa, MasterCard, American Express, Discover — all have their own proprietary technology that check for irregularities in your spending history."
Siciliano believes that in order to assess the possibility that a charge is genuinely being made by you, each transaction should be automatically evaluated for up to 200 distinct data points, including your location, your typical purchases, and your monthly spending.
Your card will be blocked and your subsequent purchase will be refused if the analysis is incorrect.
What results in a block?
Card issuers won't discuss specific red flags in the open because, as Siciliano notes, "That'll only give the bad people an edge."
But according to professionals and careless cardholders who have encountered a block, these purchasing practises could cause problems.
You're making purchases at unfamiliar stores. "I've received calls from my card company saying, 'We've detected unusual activity.'"
Although it wasn't unusual, Denise Richardson, a certified identity theft risk management professional and the author of "Give Me Back My Credit!," notes that it was a different pharmacy from the one she usually visited.
swiftly making a number of purchases.
Janis Badarau, of Lavonia, Georgia, occasionally visits three supermarkets in a row to obtain what she wants and benefit from specials.
However, a few months ago, she was so quick that her card had already been denied by the time she swiped it at the third store.
When I called the bank once I got home, they informed me that going to three stores in a short period of time.
charging a little fee first, then a large fee.
Sometimes thieves will use a stolen card to make a little test purchase, like a song from iTunes, before making a much larger, three-digit payment.
Your own small-big purchasing pattern could cause your card to be refused.
shopping outside of your base.
That happens a lot while you're relocating, in particular.
According to Siciliano, "If my billing address is Massachusetts and I'm purchasing a washer and dryer in Idaho, that's an abnormality, as I wouldn't purchase a washer and dryer in Idaho if I lived in Massachusetts."
charging for travel costs.
Any purchase while driving, including gas and meals from a restaurant, may result in a block.
Even if that has always been the case for travellers visiting other countries, it now also occurs at home.
According to Traci Coulter of New York City, "Once my vacation to Los Angeles alerted it and I spent 20 minutes checking transactions."
She was informed that the normal travel charges of "a taxi, a fee at the airport, in-flight Wi-Fi, and a rental vehicle hold" were what had resulted in the card being denied.
purchasing on the same day but in other locations.
Janet Gillis, of Tampa, Florida, used a card to withdraw cash from an ATM while on a cruise, and she later made a purchase in Belize.
Modes:
Fluency
For the rest of the trip, her card was declined. "Apparently, the ATM on board the ship is registered to a Miami location, and several hours later, I was purchasing something in Belize. To them, it looked suspicious because the transactions happened so close together," says Gillis. Online purchases to merchants in different parts of the world can trigger the same flag. Dealing with billing issues. When Siciliano wanted to make an addition to an online purchase, he contacted the company, but the second transaction they tried to process was declined. The card issuer "thought that the merchant was taking advantage of my card number." How to handle a block When your card company suspects suspicious activity, sometimes you'll get an email or a phone call asking you to verify a purchase.
Her card was declined for the remainder of the trip.
"Apparently, the ATM on board the ship is registered to a Miami location, and I was buying something in Belize several hours later.
Because the transactions occurred so close together, it appeared suspicious to them "says Gillis
Online purchases from merchants in different parts of the world can raise the same flag.
Taking care of billing issues.
When Siciliano wanted to add something to an online purchase, he contacted the company, but the second transaction they attempted to process was denied.
The card issuer "believed the merchant was abusing my card number."
How to deal with a stumbling block
When your credit card company suspects suspicious activity, you may receive an email or a phone call.
Other times your card is simply declined, with no advance warning and no information why, and it's up to you to call your issuer and sort out the problem. Follow these tips to minimize the hassle (and humiliation) of a blocked card:
Carry backup credit cards. You'll be able to offer another working card while you sort out the problems with the first. Keep your card's contact info handy. "Have your credit card company's toll-free number as one of your phone numbers in your mobile," recommends Siciliano. "If a card is declined, you know who to call." Tell your card company when you're traveling. Advance notice doesn't always keep your travel purchases off the "suspicious activities" list, but card companies recommend it. In the same vein, "Give your creditor your cell phone number," says Richardson. "If they only have your home number on file, that can be a problem, too." Use a prepaid card. When you travel, a preloaded card gives you the convenience of credit without the hassles. (You do lose the protection, however, so that convenience comes with a price.) Get texts. According to Chase representative Gail Hurdis, customers can sign up to receive a text message within minutes of a flagged transaction and can indicate by text whether they recognize it. If they do, the account is updated and the transaction cleared instantly. Provide a new address. When you move, quickly update your billing address so your card company recognizes your new home base. Ask for compensation. When Linsey Knerl's card was erroneously declined, the store cashier refused to accept any other card, forcing Knerl to abandon a cart full of stuff. The Tekamah, Neb., woman wrote a letter to her issuer expressing her disappointment. "The credit card company actually gave me a rewards points bonus for my troubles -- enough to buy a plane ticket the next time I traveled!" she says.
Annoying as it can be to get blocked by mistake, remind yourself that it's a sign that your credit card company's got your back.