Question

In: Accounting

Do you know why your credit card can be refused even though you are profitable?

Do you know why your credit card can be refused even though you are profitable?

Solutions

Expert Solution

Here the word “profitable” means that the cardholder purchases items regularly and pays the bill amount steadily. A cardholder’s card may be rejected or refused although he is profitable for the card company.

The reasons are as below:

No.1) Unusual purchase: If the cardholder used to purchase items of value nearly $10,000 and suddenly he swipes the card for a purchase of $100,000; such swipe may be refused, because this is unusual – the card company may not recognizing the cardholder who generally uses the card for much smaller values.

No.2) Cross of limit: If the card limit exceeds, the further swipe of a purchase surely would be refused. Such limit varies from card to card.

No.3) Effect of other card: If the cardholder has multiple cards of a single bank and a card is already blocked because of non-payment, the other card could have been blocked too. In that case such card can be refused.

ekkarill92 answered 6 hours ago
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