Sometimes a transaction may be declined, even if everything appears to be in order. This guide outlines the most common reasons why this can happen, and what steps you can take to fix or avoid it.
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Common reasons for declined transactions
1. Insufficient budget available balance
Each card is linked to a specific budget. If that budget does not have enough funds to cover a purchase, the transaction will be declined — even if the company’s overall balance is sufficient.
Tip: Check the budget's available balance before making a purchase.
2. Company balance too low
Even if a user’s budget has enough funds, a transaction may still fail if the company-wide balance is too low.
Tip: An Admin can review and top up the company balance if needed.
3. Incorrect PIN
Entering the wrong PIN will result in the transaction being declined. Click here to learn more about PINS.
4. ATM withdrawals disabled
If a transaction is declined at an ATM, it may be due to ATM withdrawals being disabled by the company Admin.
Tip: Confirm with the Admin whether ATM access is enabled for the card.
5. Prepaid card not accepted
Some merchants or payment platforms do not accept prepaid cards, which can lead to a declined transaction — particularly for online or international payments.
Tip: Consider using an alternative payment method or trying a different merchant.
6. Connectivity or system errors
Transactions can be declined due to:
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Merchant system outages
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Poor internet connection (especially for online payments)
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Temporary service interruptions from Budgetly or the card provider
Tip: Wait and try again later, or use another method if the purchase is urgent.
What to do if a transaction is declined
In most cases, the reason for a declined transaction will appear directly in Budgetly. If the transaction does not show up at all, it means it was blocked by the merchant before it reached Budgetly. In these instances, the merchant almost always provides a reason, and only they can explain why the transaction was rejected.
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Check Budgetly — if the transaction appears, the decline reason will be listed.
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If it doesn't appear, contact the merchant to find out why it was blocked.
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Keep the declined receipt (in-store) or take a screenshot of the error (online).
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Retry the transaction — it may have been a one-off error.
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Check the budget and company balance to make sure there are enough funds.
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Contact Budgetly support if you're still unsure or need further help.
Note: Declined transaction fee. A fee of $1.00 is charged for each declined transaction due to insufficient funds, either at the budget level or the company balance level.