05 Do Not Honor Decline: What It Means & What to Do

Credit card transactions are a common part of daily commerce, yet they sometimes encounter unexpected hurdles. One such common obstacle is a transaction decline accompanied by the code “05 Do Not Honor.” This code signals a rejection from the cardholder’s issuing bank, providing limited information to the merchant. Understanding this decline code is helpful for both consumers and businesses navigating payment processing.

Understanding “05 Do Not Honor”

The “05 Do Not Honor” code indicates that the cardholder’s issuing bank has declined the transaction. This is a generic decline message, meaning the bank has not provided a precise reason to the merchant. Unlike more specific decline codes that might pinpoint issues like insufficient funds, “05 Do Not Honor” acts as a broad category for various internal bank decisions.

This ambiguity can be frustrating, as it offers little immediate insight into the problem. The code communicates that the bank will not authorize the payment. The transaction cannot proceed, and typically, no funds will be transferred.

Common Reasons for the Decline

While the “05 Do Not Honor” code is generic, several common scenarios can trigger it from the issuing bank. One frequent reason is suspected fraudulent activity on the account. Banks monitor spending patterns. If a transaction appears unusual (e.g., a large purchase or unfamiliar location), it may be flagged for security. The bank might decline it to protect the cardholder from unauthorized use.

Another contributing factor can be internal bank policies or temporary account holds. A card may be temporarily locked due to multiple denied payments or unusual activity triggering fraud detection. Incorrect card details, such as a billing address (AVS) or CVV mismatch, or even a single incorrect digit, can also lead to this decline.

While insufficient funds often have a specific decline code, a bank might still issue “05 Do Not Honor” if the account lacks balance, especially with other internal flags. Exceeding daily or transaction limits, or a card being reported lost or stolen, can also result in this decline. Less commonly, a system glitch at the bank or an inactive/expired card could be the cause.

Steps to Take After a “Do Not Honor” Decline

When faced with a “05 Do Not Honor” decline, a cardholder’s first step is to contact their card-issuing bank directly. Calling the number on the back of the card allows them to inquire about the specific reason and verify their account status. The bank can often provide detailed information not shared with the merchant, such as a temporary hold, a fraud alert, or a limit being reached.

After speaking with their bank, the cardholder may be advised to retry the transaction or use an alternative payment method. For merchants, upon receiving a “05 Do Not Honor” code, inform the customer about the generic nature of the decline. Suggest the cardholder contact their bank for clarification and resolution.

Merchants should not repeatedly attempt the same transaction immediately without the cardholder addressing the issue with their bank. Trying a different card or payment method, such as another credit card, debit card, or digital wallet, is a practical approach. In some cases, waiting 24 hours before re-attempting the transaction might also be recommended, particularly for card-not-present transactions.