Is your credit card blocked? Find out the reasons and solutions to resolve it here!

Ever wondered why your credit card suddenly can't be used, even though you still have plenty of limit left? No need to worry anymore! Here are some reasons why banks suddenly block credit card and how to resolve it:

Reasons your credit card is blocked

1. Suspicious transactions

Many banks currently implement fraud detection system which will automatically block your card temporarily if the system detects suspicious transactions. These suspicious transactions can occur in several scenarios, such as:

• A sudden surge in transaction value. For example, you typically use this card for monthly expenses of Rp3,000,000, but in January, you suddenly use it for a vacation to Japan worth Rp24,000,000. Due to this increase in transaction value, it's highly likely the bank's system will flag it as a suspicious transaction. 
• The credit card is suddenly used abroad or domestically in unusual locations. For instance, if you've had a credit card for 5 years and never used it in Japan, then suddenly you travel to Japan without prior notification to the bank. Don't be surprised if the bank's system blocks your card because they might assume the card is lost or used by an unknown person.
• Excessive cash advance (gestun) transactions. Gestun is the practice of obtaining cash by swiping a credit card at various stores offline (not through official bank channels). In addition to being fast and easy, this method is often used to withdraw large amounts of money at once. Gestun transactions that are excessive can also send suspicious signals to the bank's system. 
• Your credit card system has been hacked. You are in Indonesia but suddenly receive a transaction notification credit card in Japan or another country? This means the card's system has been hacked and used by unauthorized individuals (unauthorized users). 

Typically, banks do not immediately block cards. They will first send a notification and confirmation email before officially blocking your card. If there is no response within a certain period, the bank's system will automatically close the card.

2. Inactivity

If you are interested in having more than two credit card at once, then make sure you actually use them. This is because credit card that have been activated but are not used for a long time will be automatically blocked by the bank. 

3. Incorrectly entering your PIN 3 times

Some types of credit card transactions still require customers to enter their personal identification number (PIN). Just like an ATM card, if you enter this 6 or 8-digit number incorrectly 3 times, the system will automatically block the card as a precaution, in case it is being used by an unauthorized person. 

4. Overdue bill payments

Failing to pay off your bill for up to 2 months can also result in your credit card being permanently blocked by the bank. This is because the bank no longer considers you a suitable customer, so if you wish to use it again, you will have to start the application process from scratch. 

Additionally, failing to pay credit card bills can also lead to a decline in your credit score  , which can then impact your chances of getting other bank loans. Therefore, remember to use this card responsibly and pay your bills even more diligently!

Solutions if your credit card is blocked

Can a blocked credit card still be used? Yes, it can, as long as the credit card is only temporarily blocked, for instance, due to suspicious transactions or because the card is lost. 

1. Immediately contact the relevant bank's call center

There's no need to panic if your credit card is blocked. Immediately contact the call center of the relevant bank or visit the nearest bank branch. If you intentionally blocked the card because it was lost, you must first obtain a police report for the loss. This document is required by the bank to issue a new card. 

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For Honest credit card, you can directly contact WhatsApp number 081119191101, or call customer service at 0800-1-101-101 (toll-free, for customers in Indonesia) and +6221-50867077 (for international calls). Prepare your ID card number and your mother's maiden name, and describe your issue. 

2. Promptly settle your outstanding balance

If your card is blocked due to long-overdue installments, immediately contact the relevant bank and pay off the outstanding balance. Demonstrate your commitment to settling the debt installments so the bank is willing to help find the best solution. This is because the bank might offer a credit restructuring program if the reason for the arrears is a major issue, such as contracting Covid-19, business bankruptcy, and so on. 

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Prevent your card from being blocked by keeping your credit card app notificationsactive, avoiding using 100% of your credit limit, and defaulting on installment payments. While this bank loan facility offers many promotions and conveniences, to use it optimally, you need commitment and discipline.

Frequently Asked Questions (FAQ):

1. What is the difference between a temporary and a permanent credit card block?

A temporary block can be lifted once the issue is resolved (e.g., outstanding balance issues or incorrect PIN entry). A permanent block means your card is completely deactivated (e.g., due to expiration or a closure request) and you will need to get a new card printed.

2. How can I tell if my credit card is blocked without trying it on an EDC machine?

You can check your card status through your credit card app or mobile banking, by contacting the call center, or by checking SMS/email alerts from the bank.

3. If my credit card is blocked, will recurring charges automatically stop?

No, outstanding and unpaid bills will continue to accrue. Late fees and interest will continue to be calculated until the debt is settled so that your credit score at BI Checking gradually clears.

4. Can I unblock my credit card via an ATM?

Typically, this is not possible. To unblock a credit card, you usually need to visit the bank or credit card provider to apply for a new credit card, bringing specific documents and data.

5. If my card is blocked, will automatic subscription services (such as Netflix, Spotify, and similar) also stop?

Yes. Since the card cannot be debited, automatic recurring payments will fail, and your subscription service will be suspended until the card is active or replaced. However, if it's a loan/debt (not a subscription), it will continue until you pay it off.