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What Does The 05 Do Not Honor Credit Card Error Mean?
The decline code 05 Do Not Honor, is a general credit card transaction error issued by the cardholders’ bank. It means that the bank has chosen not to approve the transaction, but it does not specify the exact reason for the decision. When banks don’t have a single clear reason for the payment decline, they will just use the ambiguous “Do Not Honor” code as a way to stop the transaction so the parties can figure out what the issue is.
05 Do Not Honor Errors Can Cause Confusion About Whose Responsible
The do not honor credit card transaction error can be a little bit maddening for merchants and consumers alike. The error prevents the transaction from being processed, but doesn’t give you any hints as to how you can fix it. On top of that ambiguity, there isn’t really a way to tell if it is a customer or merchant problem causing the issue. This results in a confused cashier or support staff grasping for some way to explain to the annoyed customer why their card isn’t working. They are usually left with only being able to suggest that they customer use a different payment method or card or contacting their card issuer.
When customers encounter a declined credit card at a store or online shop, they can take a number of steps to try and resolve the issue, non of which make them happy. They might try another payment method such as a different credit card, debit card, digital wallet, or even cash. Some may contact their bank to understand and fix the problem, or they could seek help from store staff if the issue arises in a physical store. If these solutions are inconvenient to the store patron or unavailable, customers are likely to abandon the transaction altogether or decide to delay their purchase.
What Causes 05 Do Not Honor Credit Card Decline Codes?
1. Pre-authorization Charges Haven't Been Reimbursed
An outstanding pre-authorization can cause a “Do Not Honor” credit card error primarily due to its impact on the available credit limit of the cardholder. Here’s how this process typically unfolds:
Holding Funds: When a pre-authorization is placed on a credit card, it effectively “holds” a specified amount of the cardholder’s credit limit to ensure that sufficient funds are available when the final transaction is processed. This is common in scenarios like bar tabs, hotel bookings or car rentals, where a service provider needs assurance that the customer can pay the expected amount.
Reduced Available Credit: Although no money is actually charged to the account at the time of pre-authorization, the held amount reduces the available credit limit. For example, if a card has a credit limit of $1,000 and a pre-authorization of $300 is made, the available credit limit then drops to $700.
Subsequent Transactions: If the cardholder attempts to make another purchase that exceeds their reduced available credit limit, the transaction may be declined by the bank issuing the credit card. This is particularly likely if the pre-authorized amount is large enough to significantly limit the remaining credit.
Do Not Honor Error: In such cases, when the available credit isn’t sufficient to cover new transactions due to outstanding pre-authorizations, the bank may issue a “Do Not Honor” decline code. This general decline does not specify that the cause is an outstanding pre-authorization, leaving the cardholder possibly unaware of the true reason without further inquiry.
How To Prevent or Mitigate Do Not Honor Errors Because of Pre-Authorizations
To help ameliorate this situtation, it’s important for cardholders to be aware of their current available credit and any pre-authorizations that might be affecting their spending ability. It should be among the first things they look into as they try and troubleshoot the issue. Merchants can help by releasing pre-authorizations as soon as they are no longer needed, ensuring they do not unnecessarily tie up the cardholder’s credit.
2. Multiple Transaction Denials In the Recent Past
Repeated credit card denials can trigger a “Do Not Honor” error due to increased security measures from the issuing bank, which perceives these denials as potential fraud. When a card is consistently declined, especially in situations involving incorrect details, unusual locations, or high-risk merchants, the bank’s fraud detection systems may respond by temporarily locking the card and applying stricter risk management protocols. This preventive action helps minimize the risk of fraud by stopping further transactions until the cardholder contacts the bank. Such a lockdown leads to a “Do Not Honor” status, prompting a thorough account review to assess and resolve any suspicious activity. This process requires direct engagement from the cardholder to clarify transaction legitimacy and regain card functionality.
How to Fix 05 Do Not Honor Errors Due to Transaction Denials?
The only option here is for the card holder to call their bank and attempt to get it unlocked.
3. Traveling Internationally Can Cause A Do 05 Not Honor Error
When the issuing bank of a credit card is in a different country from where a transaction is attempted, a “Do Not Honor” error can occur due to factors like suspicion of fraud, especially if transactions in unfamiliar locations trigger automatic security flags. Banks may also have restrictions on foreign transactions to comply with regulatory standards or due to past fraud experiences, potentially leading to declines. Additionally, technical issues like currency conversion difficulties or lack of international processing capabilities can cause transaction failures.
Fixing a Do Not Honor Error Codes Because of Geography
The best way to deal with this is for the consumer to call the card issuer and let them know that you are traveling out of the country and will be using your credit card. You will need to call every issuer whose card you plan on using.
4. A Mismatch Between the AVS or CVC Codes Can Trigger A 05 Do Not Honor Decline
A mismatch between the Address Verification Service (AVS) or Card Verification Code (CVC) and the information entered during a transaction can result in a “Do Not Honor” decline. Here’s how these mismatches can lead to this specific error:
- Address Verification Service (AVS) Mismatch: AVS is a security measure used by merchants to verify the address of a person claiming to own a credit card. The service checks the address provided by the cardholder during the transaction against the address on file with the card issuer. If there is a discrepancy between these addresses, it may raise a red flag about the authenticity of the transaction. This mismatch can be perceived as potential fraud, especially if the transaction involves a significant amount of money or occurs in a different geographical location than usual.
- Card Verification Code (CVC) Mismatch: The CVC (also referred to as CVV or CV2) is a three or four-digit code on the credit card used as a security feature for transactions where the card is not physically present, such as online purchases. When a transaction is processed, the entered CVC is compared with the CVC on file with the card issuer. A mismatch here suggests that the person entering the code may not have physical possession of the card, again raising suspicions of possible fraud.
Fixing a Do Not Honor Error Codes Because of Mismatched AVS or CVC Codes
Most of the time just re-entering the data and making sure everything is correct is all that needs to be done. Some of the time a bank may have locked the card because there has been too many failed attempts. In this case the consumer will need to contact their bank to get the card unlocked.
