Sometimes a debit card can be refused at the point of transaction in a shop or with a service provider.  This can also happen when using the card on the internet.  It can be quite distressing when this happens but there are a number of reasons to explain its occurrence.

If there is a lack of funds in the account then debit cards can often be refused.  In fact this is a major reason why many people choose to use them rather than credit cards, as they will be refused due to a lack of funds, rather allowing the customer to exceed a credit limit.  This is not always the case, however, as many transaction accounts will allow the customer to spend into unauthorised overdrafts, often without the card holder realising that it is happening.  An unauthorised overdraft will mean that the card may incur a higher interest rate often with an additional penalty charge.

Another reason why a debit card may get refused is that there may be some suspicion of fraudulent transactions with the card.  There are a number of computer programs available that the debit card providers will use to analyse the transactions that are made with a card.  This means that the debit card will have each of the transactions compared to the pattern of other transactions that are made with the same account, and any transactions that appear to be out of the ordinary will be identified.  Usually the lender will attempt to contact the customer before freezing the debit card, but in some cases they will simply freeze the card and that will mean that it will get refused even if there are sufficient funds in the account.

Refusal during a transaction can also happen if the card has been physically damaged.  In many cases the cards wear out, particularly the chips, and in other cases the card may simply have reached the end of its period of use.  In these cases it is a good idea for the card holder to contact the lender to ask for a replacement card.

Cards that are reported as lost or stolen can also be refused, usually because the lender will cancel the card and will disallow it to be reactivated.  In these circumstances it is only possible to use a replacement card.  This is the case even if the card is eventually found again.