Why PayPal Declined Your Card and How to Fix It

Experiencing a declined payment on PayPal can be frustrating, especially when trying to complete a purchase or send money. Understanding why a card might be declined is the first step toward resolving the issue. This article explores common causes for payment declines on PayPal, including issues with your card or bank, your PayPal account, or the transaction itself.

Issues with Your Card or Bank

A frequent reason for a declined payment stems from issues with your credit or debit card or its issuing financial institution. A payment will not process if the card lacks sufficient funds or available credit to cover the transaction amount. This often results in an immediate decline.

Errors in entering card details are another widespread cause for declines. This includes mistakes in the card number, expiration date, or the three or four-digit security code (CVV/CVC). An expired card will also automatically be declined, as it is no longer valid for transactions.

Financial institutions often employ fraud prevention systems that can flag transactions as suspicious, leading to a decline. This might occur for unusually large purchases, international transactions, or if the transaction pattern deviates significantly from your typical spending habits. Banks may decline the payment to protect your account from unauthorized activity. Additionally, banks or card types may impose daily or per-transaction spending limits, and exceeding these thresholds will result in a declined payment. Some new cards also require activation before use, or they might not be enabled for international transactions.

Issues with Your PayPal Account

Sometimes, the reason for a declined payment originates within your PayPal account. An unverified PayPal account may have spending limits that prevent certain transactions. For example, unverified accounts typically have a maximum sending limit. Full verification, often involving linking a bank account or providing identification, can significantly increase these limits.

PayPal’s internal security systems also prevent unauthorized transactions. If PayPal’s fraud detection algorithms identify unusual activity, such as a payment from an unfamiliar location or a transaction that deviates from your typical spending patterns, it may flag the transaction as suspicious and decline it. PayPal accounts also have various limits on sending, receiving, or withdrawing funds, tied to the account’s verification status and transaction history. Exceeding these internal PayPal limits will lead to a payment decline. Problems with a linked bank account, such as a negative balance, a frozen account, or if the account has been linked to too many PayPal accounts, can also cause declines.

Transaction or Merchant-Related Problems

Less commonly, the issue might lie with the specific transaction or the merchant. The problem could reside with the merchant’s PayPal account or their payment processing system. Their account might have temporary issues, or their payment processor could be experiencing technical difficulties preventing the transaction from completing.

Transactions involving very large amounts, even if within your card’s spending limits, can sometimes trigger additional security checks from both PayPal and the issuing bank. These checks are a measure to prevent fraud and can result in a temporary decline while the transaction undergoes review. International transactions can also be subject to increased scrutiny or restrictions. Some cards or banks may have limitations on cross-border payments, or PayPal might apply additional security protocols due to varying international regulations and fraud risks.

Steps to Resolve a Declined Payment

When a PayPal payment is declined, begin by carefully re-entering your card number, expiration date, and security code to correct any entry errors. Then, check your bank or card issuer’s online banking to verify your current balance and ensure sufficient funds are available.

If the issue persists, contact your bank or card issuer directly by calling the customer service number on your card. Inquire about the specific reason for the decline, as they can provide details about security blocks, spending limits, or other internal policies affecting the transaction. Also, log into your PayPal account to review any security alerts, account status notifications, or messages about verification requirements or exceeded limits.

Consider attempting the payment again using a different credit or debit card, or a directly linked bank account. For larger transactions that might be hitting a limit, explore whether the merchant allows splitting the purchase into smaller, multiple payments. If troubleshooting steps are exhausted and the payment continues to be declined, reach out to PayPal’s customer support, providing them with the transaction details for investigation.