4 reasons why your debit card might be denied even when you have money (2024)

Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

• There are several reasons why a debit card may be declined even if you have money in your account.
• Commons reasons may include changing cities or not having your card activated.
• Stay on top of your cards and consider using budgeting apps to help avoid being unable to use them.

It's a frustrating experience when your debit card is denied from making a purchase even when you know there's money in your bank account happily waiting to be spent.

On the bright side, the reason for a denied debit card purchase may have a simple solution. Here are the most common reasons your debit card may be declined and tips on fixing your debit card dilemmas.

1. A different bank account has funds

You might have money in your savings account, but the checking account or money market account you're withdrawing funds from has a negative balance. You can check your debit card balance over the phone, at the ATM, online, or in person at your bank.

Some financial institutions may deny you from overdrawing from your account, preventing you from making a debit card purchase.

Brian Walsh, a CFP® professional and senior manager of financial planning at SoFi, says in his experience working with people, an overdrawn account has been the most common reason for being denied a debit card purchase.

How to fix your debit card issue

Transfer money to the correct bank account so enough money is in your account to keep you from overdrawing.

Keep in mind you might have to pay an overdraft fee or overdraft transfer fee depending on where you bank. If your account balance has been overdrawn for less than 24 hours, you might be able to get an overdraft refund even if you don't have overdraft protection.

2. You've reached your daily purchase limit

If you've made some big-ticket purchases in the last 24 hours, your debit card might be denied because you've reached your daily purchase limit.

Debit cards have daily purchase limits set by financial institutions to ensure your money is safe. The daily purchase limit for your debit card depends on where you bank.

Most financial institutions will generally allow you to spend between $400 to $25,000 daily on a debit card. Some banks also offer higher withdrawal limits for specific bank accounts.

How to fix your debit card issue

You may request a temporary purchase increase on your debit card to complete your purchase. As extra security, you may be asked to verify your identity.

3. You've traveled but didn't notify your bank

Many banks require you to set a travel notice before visiting a new city or country. If you've traveled to a new location and didn't notify your bank beforehand, a financial institution may deny purchases because they think it's an unauthorized user.

How to fix your debit card issue

Contact your bank to let them know you are traveling. Before your next trip, consider going through our banking travel checklist, so your banking doesn't affect your vacation.

4. Your new debit card isn't activated

If you've just started using a new debit card because you're old one expired, it may not be activated yet. You won't be approved for any debit transactions that require a PIN.

How to fix your debit card issue

You may activate your debit card by phone, online, at an ATM, or through your bank's mobile app. When you activate it, you'll be able to set your PIN to something you can easily recall.

Tips for managing your debit cards

Walsh recommends keeping track of how often you use your debit cards and when they expire.

"You don't want to get in a position where you're traveling, and you only have a card that's either expired or not activated. It can really make your life inconvenient," explains Walsh.

You can also use technology to your advantage by analyzing how much you owe, own, and spend, notes Walsh.

"A lot of times, technology gets a bad rep because it makes it easier for you to spend money and make impulse purchases," says Walsh. "You can stay on top of your spending and see your balances and where your spending is in real-time without having to bust out a calculator or spreadsheet."

Budgeting apps allowyou to link your bank accounts, credit cards, and other financial tools and organize expenses into categories. You may also be able to set personal goals or limit spending through specific features on a budgeting app.