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What to do if your holiday gift card is declined

While pre-paid debit cards are a convenient present for the holidays, there are some potential purchases that can cause it to be declined.

JACKSONVILLE, Fla. — In 2018 Americans, spent about $160 billion on gift cards, according to WalletHub.com.

If you received one of these gift cards and plan to use it soon, using it at your favorite restaurant may leave you surprised that the card was declined. The problem may likely have nothing to do with the card.

Consumers run into issues with these cards that are supposed to provide convenience. Three of the problem areas have to do with where you eat, sleep and even get your hair done.

What can you do to avoid these issues? 

Shelly Hunter on her blog Giftcard Girlfriend addresses those concerns. 

1) Are you Using the Visa Gift Card at a restaurant or salon? 

There is a possibility the transaction may be declined. Older payment processing terminals may automatically run an authorization transaction of 20% more than your total bill to ensure the gift card has enough funds to cover a gratuity.

Solution:

Ask the cashier to charge only the bill amount, minus any gratuity, or to reduce the bill amount by 20% and retry the transaction. Be prepared to pay the bill difference with another form of payment

Are you using the gift card at a gas station? 

Gas station pumps typically pre-authorize $75 or more on the gift card causing it to decline. 

Solution:

To avoid having this hold, pay on the inside. Tell the attendant to only charge the amount you specify.

 Are you using the gift card at a hotel?

Most hotels require a credit card where they place a hold to cover incidentals.

Solution:

To avoid a hold placed on your gift card, use a credit card instead when checking in, but tell the clerk you would like to pay the final bill with your gift card.

Gift Card Girlfriend Shelly Hunter has created a consumer guide to gift cards and provides a wealth of information on using your gift card.

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