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Why Credit Card Transactions Are Flagged as Fraudulent
Introduction
The credit card companies are all too aware of the tricks that fraudsters play. They want to protect you from having your card number stolen, so they’re always on the lookout for any suspicious purchases. If you notice that one of your recent transactions was flagged as fraudulent by your bank or credit union, don’t panic! There are plenty of reasons why this happens and none of them have to do with anything nefarious on your part (unless you actually did something wrong). Here’s a list of the most common reasons why a transaction might be flagged as fraudulent:
Unrecognized Purchases.
The most common type of fraud is when a cardholder makes an unrecognized purchase. For example, if you typically use your credit card to buy groceries, but then charge a plane ticket on it, the bank will flag it and call you to verify the transaction. This is because they recognize that plane tickets are not a regular purchase for most people and are trying to prevent fraud.
However, if you are charged for a plane ticket and don’t recognize the transaction, you can call the bank to ask about it. They may be able to help identify whether or not the charge is legitimate.
Abnormally Large Purchases.
A large purchase on a credit card is often a red flag for fraud, especially if you’re making a bulk purchase and the transaction involves more than one item. If you’re going to buy several different items at once, let your credit card company know ahead of time so they can adjust their security measures appropriately.
Abnormal Location For Purchase.
If you’re making a purchase from a location that is not in your usual pattern of purchases, it may be flagged as fraudulent. An example of an unusual location for credit card transactions would be if you were using your card in another state or country (and even within the same country). The reason why this can trigger flags is because it’s more likely that someone will steal the credit card information and then try to use it at a different location.
If you are traveling, however, there are ways around this problem so that your purchases aren’t flagged as suspicious. It’s recommended by experts (including those at CreditWatch) that before traveling with a credit card on hand – whether domestically or internationally – contact the issuing bank about their policies about foreign currency transactions and ask for assistance if necessary.
Multiple Cards With Same Account Number.
You can have multiple cards with the same account number.
You can also have multiple accounts on a single card.
Or, you might even have multiple cards on a single account! If that sounds confusing to you, don’t worry—it’s not as complicated as it sounds. Let’s break down some of the possible scenarios:
- You have two credit cards and both of them bear the same name (and in most cases, address). This one is pretty straightforward; both cards are tied to one another so they should go hand-in-hand when making purchases or applying for loans/credit lines. It’s easy enough for banks to flag these transactions as fraudulent since they’ve already verified their identity by signing up with only one card in the first place!
Too Many Transactions Too Soon.
Your transaction might be flagged as fraudulent if you make a large number of transactions in a short period of time. If you have just made one or two purchases and then suddenly do 10, that probably is going to set off some red flags for the bank. This could happen for any number of reasons: maybe you forgot about an old card account that hasn’t been used in years; or maybe you were at the store when your friend told you about it, and so decided to use it right away before forgetting again (and yes, this happens); or maybe someone has stolen your identity and they’re making purchases with all of your cards.
Regardless of what happened, if there’s no logical reason behind why this occurred—like if it’s something related to traveling—then most likely it will get flagged as suspicious activity by the financial institution.
Don’t Be Surprised If Your Credit Card Company Wants To Verify Some Of Your Purchases, And It Can Help If You Let Them Know When You’re Going To Be Traveling Or Making A Large Purchase With The Card So That They Don’t Flag It As Fraudulent.
If your credit card company flags a transaction as fraudulent, they’re not trying to be mean. They’re just trying to prevent fraud, which is bad for them and their customers alike. Sometimes purchases that are flagged can get stuck in limbo until you give them permission to go through—that’s why it’s better if you let them know when you’re going to be traveling or making a large purchase with your card so they don’t flag it as fraudulent.
There are lots of reasons why transactions may get flagged as fraud: there could be some sort of discrepancy with the information on the credit card (like an expiration date), or maybe someone else tried using your card information for a purchase but couldn’t complete it because of security measures put in place by the merchant and/or credit card company. You might also have used a new IP address (which is how computers connect to each other) or device when making purchases online from sites that don’t typically accept such payments from people who aren’t already customers (like Amazon).
Conclusion
Remember that credit card fraud is a real problem, but you don’t have to let it ruin your life. By keeping an eye on your purchases, you can avoid some of the most common pitfalls and avoid being flagged as fraudulent. And if you do find yourself in trouble with the law, contact our firm today!
RUCHI RATHOR
Founder & CEO
Payomatix Technologies Pvt. Ltd.
https://payomatix.com/
FOUNDER AND INVESTORPAYMENTS PROCESSING EXPERTMERCHANT ACCOUNT SOLUTIONSWHITE LABELLED PAYMENT GATEWAYDreamer, Creator, Achiever, Constantly Evolving
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