I have several times discussed the need to alert your credit card company that you will be traveling abroad. That's to dissuade them from blocking use of your card when they discover charges made upon it in an unfamiliar country.
But the United States?
A friend of mine from Pennsylvania, traveling with his friends to Florida, encountered difficulties a week ago when he and they attempted to use their cards in Florida. He e-mailed me about the experience, and I have his permission to reprint it below:
Halfway through my recent Florida trip, all three adults suddenly found their credit cards suddenly denied -- two Visas and an AMEX card, all from different card issuers. It confused us, until I got a call from the fraud department of my Capital One Visa. Our crime? We were all from Pennsylvania and sought to spend money in Florida.
As you know, many card issuers have long had a policy in place that, should your card suddenly start making purchases in a foreign country, it will place an automatic freeze on the account until they can confirm that you the card owner were legitimately making the charges. This is why it is imperative to call your credit cards companies before traveling abroad to let them know your travel plans so as to avoid any confusion and denied charges.
Well, apparently they now put an automatic hold on cards making purchases even in a different state.
A cautionary note, from me: the occasional refusal to permit use of a credit card in a location remote from the credit card holder's normal use, is nothing new. Most of us have heard of such instances before. But it does not yet appear that the credit card companies are extending that policy to the use of a credit card in all out-of-state locations: numerous residents of Pennsylvania and New Jersey encounter no problem when they use their credit cards in New York or Connecticut. I would assume that a resident of Chicago has no problem using his/her credit card in Milwaukee.
It is a use of credit cards in areas far removed from the user's normal movements that have apparently caused credit card companies to occasionally block the use. In an additional communication to me, my friend has speculated -- and admitted it was pure speculation -- that the credit card companies are now blocking such use far more frequently than before. He believes such activities are being speeded up as a means of displaying the credit card company's solicitude for the welfare of their customers, thus heading off proposed legislation to impose severe regulations on the credit card companies.
I'd be interested to know whether any of our readers have had their cards blocked far more frequently than before. And whether you agree with my friend's speculations.
It has definitely been happening more frequently, but I actually appreciate the safegaurds in place. However, my card was declined at a grovercy store one day (mind you, I was buying expensive champagne and cheeses) and they said there was a message to "call the bank." I was in my home city at the time and was nervous, as I pay my balance in full every month and have a large limit. The bank (Chase) informed me that they put a hold on my MasterCard to verify recent online purchases that were made at an odd hour. While the purchases were legitimate (insomnia-driven shopping spree), I agreed that it was unusual spending for me...and I spend a lot, and travel frequently. I asked if I should worry about travel and was informed that I'm fine since they check to see what's "normal," for each customer. The hold is immediately reversible, I am all for the extra safeguards.
While I am for the extra safeguards, sometimes I think they are a little over the top. My husband and I live in Pennsylvania and we recently planned a weekend in NYC. We checked into the hotel with our Chase Visa without any issues, went to dinner and our Chase Visa wasn't accepted. I didn't think anything of it (my husband frequently demagnetizes his strips, not sure how) , paid with his AmEx. The next day we went shopping, my purchase totaled less than $100, but MY chase card (same account, but my card instead of my husband's) was declined. This time I was upset because I knew there was nothing wrong with my physical card or the account. My husband again paid with the AmEx. When we left the store, I was mortified and called Chase. They claimed NY was out of my "normal spending pattern" which was why they froze the card. I told them how embarrassed I was to be declined, but the man didn't seem to care. The sad part of the whole story, my husband and I frequently travel to NYC, NJ, MD and always use the Chase and didn't have issues until this one trip. The customer service representative could not provide a reason for the card always working and then just stopping when we clearly travel to NYC at least monthly. Not sure what their system is for detecting unusual spending, but I feel it is flawed.
I contact the card company for every card I take on a trip whether it's overseas or another state. A few minutes of my time is well worth avoiding the possible aggravation of a declined card. Never had a problem using this method.
My Capital One card reps have certainly been more diligent. I always call to note my international trips, but recently had my account frozen while across the country...and only after my 2nd purchase.
Personally, I welcome the safeguards, BUT I would prefer that the notification process be significantly easier. They currently won't allow notes to be place online and phone communications tend to take significantly longer than they should.
Yep. I had my very first out-of-state purchase denied. (I always call for foreign travel.) The call rep advised me to start informing them about domestic travel as well. Oh, well.
My Visa card was frozen because I renewed a subscription to a UK magazine. It was not suspicious the first two times I charged the subscription. The fraud department rep then asked me to verify other charges which were all regularly recurring monthly automatic withdrawals. I thought their fraud detection methods could use some tweaking after that experience.
I took an airline job this summer that allows me to be in a different one of the airline's domestic destination cities for part of each week. So far I've had my New York based 30 year credit history with payments up to date credit cards decline for no reason in San Francisco, Las Vegas, Portland Maine and Austin Texas.
I suppose charging from a different city each week raises suspicions, but I never get around to calling before each trip.
A merchant in Las Vegas told me that he heard that certain cities are more likely to raise red flags such as New York, Las Vegas and San Francisco.
A related issue: ATM cards will not work as you might think in Canada. Ordinarily around the world, any ATM machine that has the "right" affiliation for your card (e.g., Cirrus) will dispense cash to you. NOT in Quebec (and perhaps elsewhere in Canada). I had 3 successive machines tell me my PIN was wrong, my card was expired, or the transaction was in valid. Not at all true and I tried two different ATM cards. If the machine claims "Direct-Pay" you are out of luck. You need to go to a bank-related ATM (RBC, Des Jardin, for example in Quebec). Furthermore, I found a number of Quebec gas stations that said they do not take American VISA cards. Sometimes they will take it inside, but not at the pump. I don't know the reason, but it's a big surprise and major pain.
Personally, I welcome the safeguards, BUT I would prefer that the notification process be significantly easier. They currently won't allow notes to be place online and phone communications tend to take significantly longer than they should.
prior to canceling the card? if they don't answer, then cancel the card.
I suppose charging from a different city each week raises suspicions, but I never get around to calling before each trip.
A merchant in Las Vegas told me that he heard that certain cities are more likely to raise red flags such as New York, Las Vegas and San Francisco.
If the machine claims "Direct-Pay" you are out of luck. You need to go to a bank-related ATM (RBC, Des Jardin, for example in Quebec).
Furthermore, I found a number of Quebec gas stations that said they do not take American VISA cards. Sometimes they will take it inside, but not at the pump.
I don't know the reason, but it's a big surprise and major pain.