Do Not Honor Credit Card: What It Means and What to Do
When your credit card says "Do Not Honor," discover the underlying bank reasons and clear steps to address this specific transaction denial.
Credit card transactions are generally smooth, but occasionally, a purchase attempt results in a decline message. Among these, the “Do Not Honor” message can be perplexing for both consumers and merchants. This specific type of decline indicates a decision made by the cardholder’s bank, signaling that the transaction cannot be completed at that moment. Understanding the nature of this message is important for cardholders to address the situation.
Meaning of “Do Not Honor”
The “Do Not Honor” message, often appearing as a generic code like “05” or “2000” at a point-of-sale terminal or online checkout, is a broad directive from the cardholder’s issuing bank. It signifies that the bank has refused to authorize the requested transaction. This message is intentionally vague, providing no specific details to the merchant about why the decline occurred.
This type of decline is a direct bank-level decision, originating with the cardholder’s financial institution rather than the merchant’s equipment or a physically damaged card. Unlike more specific decline messages such as “insufficient funds” or “invalid card number,” “Do Not Honor” serves as a general refusal. The bank does not disclose a precise reason to the merchant, necessitating direct communication between the cardholder and their bank to uncover the underlying cause.
Reasons for “Do Not Honor” Declines
A “Do Not Honor” message can stem from various situations, often related to a bank’s internal risk management and security protocols. One common reason involves suspicious activity or fraud prevention. Banks employ advanced systems to monitor spending patterns, locations, and transaction types. An automated fraud detection system might flag a transaction as unusual if it deviates significantly from a cardholder’s typical purchasing behavior, such as a large purchase made in a new location or at an uncharacteristic time.
Account holds or freezes can also trigger a “Do Not Honor” decline. Banks may place a temporary hold on an account due to suspected fraudulent activity, legal issues, or administrative reviews. This action can prevent any new transactions from being authorized until the hold is resolved. Such freezes are security measures designed to protect the cardholder from potential unauthorized use of their account.
For cardholders planning to travel, particularly internationally, failing to notify their bank can lead to “Do Not Honor” declines. Transactions attempted in unfamiliar geographic locations, especially outside the cardholder’s usual area, may be automatically flagged by the bank’s security systems as potentially fraudulent. Informing the bank of travel plans allows them to approve legitimate transactions from those locations.
Large or unusually high-value purchases can also be subject to increased scrutiny. A transaction significantly exceeding a cardholder’s average spending or daily limits might prompt the bank to decline it, requiring verification from the account holder.
Previous payment issues, such as recent returned payments or overdrafts, can sometimes lead to a bank placing a temporary caution on an account. This caution might result in subsequent transactions being declined as the bank exercises increased vigilance.
Banks maintain their own internal policies and risk assessment models. These policies contribute to how they evaluate and approve or decline transactions, making “Do Not Honor” a possible outcome even for seemingly normal purchases if they fall outside the bank’s specific risk parameters.
Actions for Cardholders
Upon receiving a “Do Not Honor” decline, the first step is to contact your bank immediately. Cardholders should be prepared to provide details of the declined transaction, including the date, time, merchant, and exact amount. The bank’s customer service representative can access the specific reason for the decline and help resolve the issue.
While resolving the issue with the bank, try an alternative payment method to complete the immediate transaction. Using a different credit card, debit card, or cash can complete the purchase. Cardholders should review their account activity through online banking or mobile apps. This review can help identify any unusual transactions or notifications from the bank that might explain the decline.
To prevent future “Do Not Honor” declines, especially when traveling, cardholders should update their bank with their travel plans, including destinations and dates. This ensures the bank’s fraud detection systems are aware of expected transactions. Ensuring all contact information, such as phone numbers and email addresses, is current with the bank is important. Banks often attempt to reach out to cardholders regarding suspicious activity, and accurate contact details facilitate communication. Familiarizing oneself with the bank’s fraud alert and transaction monitoring policies can help understand why certain transactions might be flagged.