Credit card declined after use?

XtraGamer

Good Afternoon all,

I recently applied and received a credit card from Virgin. We're using it for a holiday so I booked the holiday yesterday which went through as a pending transaction.

Today after trying to book a train ticket it was declined and I got a message from the Virgin Security check team. They asked me several questions I had already answered about how much my mortgage is etc. and then said this info would be sent to the underwriters and I should hear from them in a few days.

My question is, what will happen to the pending transaction of the holiday? Is there anyway it can be stopped? I assume Virgin can lower my credit limit (I've done about 60% of it so far) and potentially make it so I cannot put anything else on the credit card. If that's the case, it's not the end of the world. But as my holiday is in two weeks I'm a little worried incase there's a possibility that they could somehow cancel the transaction.

I might be over worrying but I haven't heard of someone receiving a card before and then it being completely cancelled if that's the case here!

Any help would be greatly appreciated.

born_again

Not sure why the security team would pass info on to underwriters.

Sounds like a simple security check. Holiday booked and then train ticket. Common fraud pattern.

If the transaction is pending, then Virgin have approved it. The only people who can stop it are the holiday co. Contact holiday co and get them to confirm the booking.

Ben8282

Agree wit the above.
The security check seems reasonable enough (although perhaps annoying) and the questions asked reasonable enough to confirm your identity by checking the answers matched the answers given on your application. But why the security team would be referring anything to underwriters is beyond me.
Why do you assume Virgin will lower your credit limit?
If Virgin have approved the holiday transaction then you will have your holiday. It will go through.
Your bigest problem will be if Virgin determine that your application was somehow fraudulent and completely cancel the card and ask for immediate repayment of the outstanding balance as I feel may well be the case if the black was not lifted after the security check..

Terry_Towelling

The 'pending' transaction will sit on your account until the holiday company clears the transaction and your account is debited properly.

I don't know why you should think that your card account will be cancelled or your credit limit reduced - neither do I understand at all what the reference to 'underwriters' means.

What did you do about the train ticket in the end? Have you tried to order it again? If Virgin has already asked you their security questions and you answered them correctly, you should be OK to go ahead with the transaction again.

Why don't you call them up again and get them to clarify what on earth they were on about, and find out whether your account was blocked or whether it was simply a declined transaction.

Virgin are the only people who can really tell you what is going on.

XtraGamer

Thanks all for your replies. To answer your questions...

The idea that my card will be cancelled or credit limit lowered is purely speculation. I don't have much experience with credit cards so not really sure what the norm is. I would agree that they thought it was fraudulent activity but why they're telling the underwriters stuff is what alarmed me.

I have a receipt from the holiday that it went through so that is good. I did try calling again but the correct department was, naturally, shut until Monday. My account is still for the time being frozen so cannot make any payments. Luckily I was able to pay for the train via my normal debit card!

gionnetto

XtraGamer wrote: »

I recently applied and received a credit card from Virgin. We're using it for a holiday so I booked the holiday yesterday which went through as a pending transaction.

Today after trying to book a train ticket it was declined and I got a message from the Virgin Security check team.

I have a CC with Virgin. Your first transaction cannot be done online, nor can it be done contactless - no matter the amount. First transaction needs to be done face to face and your PIN needs to be used. After you've done that, you'll be all good.

HampshireH

I have never used my Virgin CC face to face or by using my pin. All my transactions have been over the phone or online.

gionnetto

HampshireH wrote: »

I have never used my Virgin CC face to face or by using my pin. All my transactions have been over the phone or online.

When I got my first CC (a Vanquis), I used it online or contactless for about 20 times. Then one day I got declined and couldn't understand why, as I wasn't anywhere near my limit, always paid it in full, etc. It turned out they had introduced some additional security checks, and now I know I have to do a face to face transaction using my PIN every now and then.

[Deleted User]

gionnetto wrote: »

When I got my first CC (a Vanquis), I used it online or contactless for about 20 times. Then one day I got declined and couldn't understand why, as I wasn't anywhere near my limit, always paid it in full, etc. It turned out they had introduced some additional security checks, and now I know I have to do a face to face transaction using my PIN every now and then.

A lot of card providers do this, not just sub-prime lenders

XtraGamer

This could be the reason why. I did change my PIN to start off with at an ATM. But the only transactions are two made over the phone from Disneyland Paris, none face to face. Card is still frozen, hopefully will find out later today the outcomes!

boo_star

XtraGamer wrote: »

This could be the reason why. I did change my PIN to start off with at an ATM. But the only transactions are two made over the phone from Disneyland Paris, none face to face. Card is still frozen, hopefully will find out later today the outcomes!

It shouldn't be, they'll just default to Chip and PIN.