What does it mean when your credit card is restricted?

By: Sr vini

If you are doing a transaction but are shocked to see the screen showing the credit card is restricted, then you are not alone. Many people experience restricted credit cards. But what does it mean when your credit card is restricted? 

Due to a variety of reasons, the credit card gets restricted, it can include the bank protecting your card from fraud, or there is some problem with your card usage. However, there can be other reasons as well. Mainly this issue is seen in Capital One credit cards. 

Let’s get to know more about this issue & what can be done to resolve the ‘restricted’ status. 

What does it mean when your credit card is restricted?

There are several reasons why your credit card is restricted. The most common reasons are:

1) Fraudulent Activity

It’s common for your account to be restricted if there’s activity on it that suggests you’ve been a victim of credit card fraud.

Examples include:

  • Multiple or consecutive transactions at the same establishment.
  • Significant expenditures.
  • Multiple modifications to your credit card account.

To prevent illegal purchases, the card issuer may restrict your account.

2) You used your card more than its limit.

Any bank will set a maximum credit limit on your credit card when you apply for one. In other words, you can only spend up to the limit set by the bank on your card.

However, many banks will allow you to go over your spending limit once and simply charge you a fee for doing so. However, if you go over your limit several times, this could be a reason for your account to be restricted.

3) You are paying back late.

If you haven’t paid your credit card bill on time, this could be another reason why your account might be limited.

It doesn’t matter why you didn’t pay your credit card bill. The card issuer could even close your account because of unpaid bills. It could happen if you haven’t paid for a long time.

4) Unusual card usage

Your credit card may be blocked if you use it to buy from a store or platform that you haven’t bought from before, which is another reason why. The system might think the transaction is suspicious or fraudulent, resulting in the card getting restricted.

Read Also: What happens if you don’t use your credit card?

5) System Error

Another probable explanation for the restriction on your credit card is a system error. If you’re unable to use your card, it could be because the bank or card issuer is having problems or issues with their system.

What happens when credit card is restricted?

You may be unable to withdraw money or conduct online transactions if you have a restricted credit card. Even the smallest transactions or usages may be restricted. If you have a limited credit card, you may be unable to make cash withdrawals as you see fit.

Overall, your card will be of no use if it is restricted!

How to lift restriction on credit card?

In the event that your account has been restricted, you can try the following options:

Contact the Bank or Card Issuer

The first & foremost thing you should do is to contact the bank or card issuer & explain the problem. Then ask for the reason for the card restrictions. If the restriction is due to non-payment of a bill, then pay the bill.

On the other side, if the bank has restricted the account due to suspicion or unusual usage, you can request them to release the account.

Mostly, the cards restriction happens in Capital One cards, so you can contact their customer support at 1-800-227-4825.

Payback your credit

If you know why your card has been restricted & non-payment is the reason, then you should pay back the amount & the bank may automatically release your account. If not, then call or mail the bank & ask for lifting the restriction. 

Should I close a restricted credit card?

No, you should make efforts to uplift the restrictions on the card. If, even after paying back the credit or contacting customer care, the card is not released, then only you should opt for closing the account.

However, keep in mind that closing a credit card may impact your credit card on some level.

Check Also: What is Negative Balance on Credit Card

Bottom Line

Credit card restrictions can happen to any customer, but don’t stress about it & just contact customer support. If you do not pay credit card bills on time, then do it in a timely & your card will not be restricted again.

We hope you found this article helpful & informative. Please let us know your thoughts & suggestions in the comments below!

Thank you for reading!