How To Avoid Declined Transaction Fees on Virtual Cards in 2024

Imagine your virtual card getting charged each time a transaction gets declined, that can be very frustrating. You are unable to complete your transaction, and yet your funds get deducted. If this has been your reality before, then you don’t have to imagine. I’m sure you know how annoying it can get. 

Before I started using iTunes gift card for my Apple Music subscription, I used to use a virtual dollar card. On some occasions, the payment would get declined multiple times due to insufficient balance or other reasons and I would get charged for it. This used to really frustrate me and I had to find a way to stop it. 

Now, I have some handy tips that can help you avoid getting charged or having your card frozen due to declined transactions. That’s why in this article I will be discussing how to avoid declined transaction fees on virtual cards. However, let’s first understand why there are declined transactions and declined transaction fees. 

Why Virtual Card Providers Charge Declined Transaction Fees

Virtual card providers charge their users for declined transactions because they also get charged by their third-party processors, like Mastercard or Visa, for these declined transactions. These processors charge the providers whenever a transaction fails, and these costs add up to a lot of money.

Several reasons can cause a transaction to fail, including:

• Insufficient balance
• Geographic or international limitations
• Spending limits
• Card validity issues
• Security concerns

When your virtual card gets declined for any of these reasons, you could get charged. Declined transaction fees help cover the costs that the card providers would otherwise have to bear. Moreover, these fees help card providers prevent fraud and deter people from abusing their system and services. 

5 Tips To Avoid Declined Transaction Fees on Virtual Cards 

To avoid getting charged for declined transactions on your virtual card, follow these tips: 

1. Regularly check your balance. 
2. Leave a minimum balance in your account. 
3. Track your subscriptions. 
4. Keep your card details safe.
5. Be familiar with your card provider’s terms and conditions. 

Now, let’s talk more about each tip. 

1. Regularly check your balance

Always know how much money you have on your virtual card. Check your balance often to avoid any surprises. Cultivate a habit of checking your balance before and after adding your card to make payments. This habit helps you stay on top of your spending and prevents declined transactions and the charges that come with them. 

2. Leave a minimum balance in your account

Always try to keep a minimum balance of $5 in your virtual card account. This extra buffer can cover small, unexpected charges like maintenance fees and help prevent declined transactions. It’s a simple way to ensure a fee never catches you off guard.

3. Track your subscriptions

Keep an eye on all your subscriptions. Make a list of services that charge your virtual card regularly. This way, you’ll know when to expect charges and can ensure you have enough funds to cover them.

Additionally, remove your card from subscriptions you no longer need before the due date to avoid getting charged. You should also cancel free trials you don’t plan on renewing.  

4. Keep your card details safe

Protect your virtual card information. Don’t share your card details with others as they might misuse it. Also, be cautious when entering your information online. Confirm that whatever website you want to use your card on is real and secure. 

Keeping your details secure helps prevent unauthorized transactions and potential fees. If you suspect any foul play going on with your virtual card, freeze it and contact your card provider’s customer support for further assistance. 

5. Be familiar with your card provider’s terms and conditions. 

Take the time to read and understand the terms and conditions of your virtual card provider. Knowing the rules helps you avoid unnecessary fees and understand how to use your card effectively.

Additionally, try to keep up with updates or changes to the terms and conditions of your card providers. You can do this by following their social media channels and reading the emails they send. 

Frequently Asked Questions About Declined Transactions on Virtual Cards

1. What is a declined transaction fee?

A declined transaction fee is a charge you incur on your account when a transaction on your virtual card gets denied. This fee covers the costs of handling the declined payment.

2. Why do virtual dollar card transactions decline?

Virtual dollar card transactions can decline for several reasons. They include insufficient funds, incorrect card details, geographic limitations, exceeding the spending limit, or an expired card. Sometimes, transactions decline due to security checks by the card provider.

3. What will happen if my transaction gets declined multiple times?

If your transaction declines multiple times, you may face multiple fees, and your card provider might investigate the issue. Repeated declines can also indicate a problem with your account, like low balance or security concerns, which might need attention.

4. What can I do if my virtual card gets declined?

Firstly, check your balance to ensure you have enough funds if your virtual card declines. Verify that your card details are correct and up to date. If everything seems fine, contact your card provider for assistance. They can help you understand the issue and resolve it.

Conclusion

Avoiding declined transaction fees on your virtual card doesn’t have to be a headache. By understanding the reasons for declined transactions and following the tips mentioned, you can prevent most failed card payment issues and ensure a smooth experience with your virtual card.