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Do you have a valid residency address that the card is registered to? And you actually living there. You probably need a us social number for this to work.
Credit based system.
You got no credit in USA.
Open a new credit card in USA
This is why I suggested you take a second look at the card details on the bank's website. You didn't mention doing that, you just stated that Steam didn't attempt to make a transaction. So it kinda seems like you ignored my advice.
If it were me anyway I might be frustrated, but I wouldn't be mad at Steam yet for not resolving something that may be out of their control. I would need to be sure, so I'd check everything, no matter how small. Small things matter sometimes, like it or not. Going over the card details with a fine tooth comb would still be on my radar. There being no transactions with Steam wouldn't be surprising, and wouldn't fall under card details as I'm thinking of them.
Sorry you had to go through this OP. Steam has some strange verification issue and is unwilling to work the problem, leaving it to the customers to find a way around it. Perfect proof is the response "just use another card". Credit Cards don't pop up out of thin air. You have to apply for them and its not worth getting a new one just for Steam. If there system is auto failing to verify the one used its their issue not ours. Anyway I just wanted to validate the OPs post. Its not a common issue but it does happen and at no fault of the customer.