Quick Answer:
Decline code 05 “Do Not Honor” means the cardholder’s issuing bank has refused the transaction without specifying why. It’s the most common and most ambiguous decline code in payment processing.
It’s a hard decline. Do not retry the card immediately. Wait at least 24 hours and ask the customer to contact their bank or use a different payment method.
Common causes: Insufficient funds, suspected fraud, AVS/CVV mismatch, geographic restrictions, expired or inactive card, bank security settings, or the bank simply not disclosing the reason.
For merchants: High do-not-honor rates hurt your transaction success rate and approval ratio, trigger processor scrutiny, and cost you revenue. Every declined transaction is a lost sale unless you have a recovery strategy. Note: do-not-honor declines are different from duplicate transaction errors — a duplicate transaction decline means the system detected the same charge was attempted twice in rapid succession.
Key Takeaways
1. Do not honor and insufficient funds (code 51) together account for over 76% of all global declined transactions, according to Visa. If you’re only solving for one, you’re missing half the problem.
2. Wait 24 hours before retrying. For card-not-present transactions, retrying sooner can forfeit your reversal rights on future chargebacks.
3. Check your AVS settings first. Overly strict address verification is the most fixable cause of do-not-honor declines — accepting partial AVS matches can recover legitimate sales without increasing fraud risk.
4. Cascading to a backup processor can recover 3–5% of declined transactions. A transaction that fails through one acquiring bank may succeed through another.5. Your MCC may be the hidden cause. Some issuing banks block specific merchant category codes entirely — your customer’s card may work everywhere except at your store because of how your business is classified.
Is your store riddled with “Do Not Honor” messages? You’re not alone.
These codes harm your business and can ultimately lead to account termination. A cleaner processing statement not only looks better but also improves your odds of getting better rates.
These decline codes are also not card network-specific. They apply to Visa, Mastercard, Discover, American Express, and virtually all others (credit and debit).
Here’s what Decline Code 05 means and what to do about it.
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What Does “Do Not Honor” (Decline Code 05) Mean?
“Do Not Honor” is a response code sent by the cardholder’s issuing bank — not by your payment processor, not by your gateway, and not by Stripe or any other platform. It means the bank has looked at the transaction and decided not to approve it, without telling you or the customer exactly why.
This is the most common decline code in payment processing. According to Visa’s transaction analysis, “Do Not Honor” and “Insufficient Funds” together account for over 76% of all global declined transactions. The code applies across all card networks: Visa, Mastercard, American Express, Discover, and others.
The ambiguity is intentional. Banks withhold the specific reason to prevent fraud — if a card flagged for suspicious activity always returned a specific fraud code, fraudsters would know exactly what triggered it. Code 05 keeps the issuer’s reasoning opaque by design.For a broader look at all credit card decline codes, see our complete guide to credit card decline codes.
Why is it so vague?
The reason lies in its versatility. “Do Not Honor” can be triggered by a variety of issues, ranging from insufficient funds to suspected fraud. It serves as a catch-all response when the bank decides not to specify the exact reason for the decline. This can be due to the bank’s privacy policies, risk management strategies, or simply an operational choice.
For merchants using Stripe, understanding this decline code is critical to the survival of your store. It represents a point of transaction failure, which can impact customer satisfaction and overall sales. The key takeaway here is that “Do Not Honor” is a signal for further investigation. It prompts a need to look closer at the transaction details, the customer’s history, and possibly to reach out to the customer for resolution.
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Is Do Not Honor a Hard or Soft Decline?
Do Not Honor on Stripe
If you’re seeing a Stripe do not honor, Stripe do_not_honor, or do not honor Stripe error in your dashboard, the cause is the same — the customer’s bank refused the transaction. Stripe displays this as “do_not_honor” (with underscores) in the API response and as “Do Not Honor” in the dashboard. You may also see “05 do not honour” (British spelling) from UK and European issuers, or simply “do not honor” on a card. If you’re wondering what does do not honor mean for a credit card or what does do not honor mean on a card, the answer is always the same: the bank said no.
When a do not honor card declined message appears on Stripe, the card has been declined by the issuer — not by Stripe itself. Stripe’s own decline codes (like “fraudulent” or “card_declined”) are separate from issuer responses. The do not honor code 05 (also written as decline 05, declined 005, or declined code 05) is passed through directly from the bank. You can view all your Stripe decline codes in the Payments section of your Stripe dashboard. For a do not honour bank response, the steps are the same: do not retry immediately, and ask the customer to contact their bank.
Hard Decline vs. Soft Decline: What’s the Difference?
Do Not Honor is generally treated as a hard decline, meaning the issuing bank has actively blocked the transaction. This is not a temporary hold or a timing issue — the bank has made a decision.
The practical difference:
Hard declines (like code 05) mean the bank said no. Retrying the same card immediately will fail again and can make things worse — repeated failed attempts can lock the customer’s card, flag your merchant account, and hurt your approval ratio.
Soft declines (like a temporary network timeout or an “issuer unavailable” response) are temporary. Retrying after a short wait typically works.The 24-hour rule: If you receive a do-not-honor decline on a card-not-present transaction, wait at least 24 hours before retrying. If you retry sooner and the transaction goes through, you may forfeit your reversal rights on a future chargeback. The safest approach is to ask the customer to call their bank before attempting again.
Why Does “Do Not Honor” Happen? Common Causes
Because code 05 is a catch-all, it can be triggered by a wide range of issues. Here are the most common:
Insufficient Funds or Credit Limit
The most straightforward reason. The cardholder doesn’t have enough available balance or has exceeded their credit limit. Some banks use code 05 instead of code 51 (insufficient funds) as a generic response, making the two codes effectively interchangeable in many cases.
Suspected Fraud or Unusual Activity
Banks constantly monitor spending patterns. A transaction that doesn’t match the cardholder’s typical behavior — unusual location, unusually large amount, rapid succession of purchases — can trigger an automatic block. The bank won’t tell you it’s a fraud flag; it just says “Do Not Honor.”
AVS or CVV Mismatch
If the billing address (AVS) or security code (CVV/CVC) submitted with the transaction doesn’t match the information on file with the bank, the transaction may be declined. This is one of the most fixable causes — see the AVS/CVV section below.
Geographic Restrictions or Travel Blocks
Many banks automatically block transactions from countries or regions the cardholder doesn’t normally purchase from. If your business is based in one country and the customer’s bank is in another, or if you process through an acquiring bank in a different country than the cardholder, this is a common trigger. International merchants are especially affected.
Bank-Side Security Settings
Some banks have internal policies that restrict transactions with certain merchant category codes (MCCs), block online purchases by default, or set daily spending limits. The cardholder may not even know these restrictions exist until a transaction fails.
Expired, Inactive, or Invalid Card
An expired card, a card that hasn’t been used in a long time, or incorrect card details (wrong number, wrong expiry date) can all result in a do-not-honor response.
Failed Customer Authentication
With the rise of 3D Secure and Strong Customer Authentication (SCA), a failure to complete the authentication step — the one-time code or biometric check the bank sends — can result in a decline.
Your MCC Is the Problem
Some issuing banks block transactions from specific merchant category codes they consider high-risk. This is common for MCC codes associated with supplements (5968), adult content (5967), and subscription services. Your customer’s card may work at other merchants but fail at yours because of your MCC classification. See our guide on issuer declined MCC errors.
Do Not Honor Due to AVS/CVV Settings: A Deep Dive
If you’re seeing “do not honor due to avs/cvv settings” in your payment gateway logs, the issue is specifically a mismatch between the billing information the customer entered and what their bank has on file.
What Is AVS?
Address Verification Service (AVS) checks whether the billing address submitted with the transaction matches the address on file with the card issuer. It compares the numeric portions of the street address and the ZIP/postal code.
AVS can return several response codes: full match, partial match (ZIP only), partial match (address only), or no match. Your gateway settings determine which responses you accept and which trigger a decline.
What Is CVV?
Card Verification Value (CVV) — also called CVC, CID, or CSC depending on the card network — is the 3- or 4-digit security code on the card. When required, the customer must enter this code during checkout. If it doesn’t match the bank’s records, the transaction is declined.
How to Fix AVS/CVV Declines
Log into your payment gateway (Stripe, Authorize.net, NMI, etc.) and review your AVS settings. Common adjustments:
• Accept partial AVS matches (ZIP only) instead of requiring a full address match. Many legitimate customers have addresses that don’t match exactly due to formatting differences.
• If you sell internationally, consider relaxing AVS for non-U.S. transactions. Many international banks don’t support AVS at all.
• Always require CVV — this is your strongest fraud prevention tool for card-not-present transactions and doesn’t cause the same false-positive issues as AVS.
• Display clear error messages when AVS fails so the customer can correct their billing address and retry.For more strategies on reducing declines caused by gateway settings, see our guide to reducing credit card decline rates.
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How Do Not Honor Declines Affect Your Business
Every do-not-honor decline is more than a lost sale. Here’s the full impact:
Lost revenue — the obvious one. If you process 1,000 transactions per month with a 10% decline rate and an average order value of $80, that’s $8,000/month in lost sales. Even cutting your decline rate by 3% recovers $2,400/month.
Per-decline fees — most processors charge a fee on declined transactions (typically $0.10–$0.25 per decline). High decline rates add up.
Processor scrutiny — if your account shows a consistently high volume of declines, your processor may increase monitoring, raise your rates, or impose additional verification requirements. On Stripe specifically, high decline rates can trigger account holds or restrictions.
Customer abandonment — a customer who gets declined once might try again. A customer who gets declined twice usually leaves. Without a clear error message or alternative payment option, that customer is gone.
Chargeback correlation — while a decline isn’t a chargeback, patterns of failed and retried transactions can correlate with higher dispute rates. Customers who eventually get a charge through after multiple declines are more likely to dispute it later.For a deeper look at how decline rates affect your merchant account, see how decline codes impact your processing statement.
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How Merchants Can Reduce Do Not Honor Declines
You can’t eliminate do-not-honor declines entirely — the decision comes from the issuing bank, not your system. But you can significantly reduce them with the right strategies:
1. Enable 3D Secure Authentication
3D Secure (3DS) adds a bank-side verification step that shifts fraud liability from you to the card issuer. Transactions authenticated through 3DS are less likely to be declined for suspected fraud. It also reduces chargebacks on authenticated transactions.
2. Optimize Your AVS/CVV Settings
Review your gateway’s AVS settings. Overly strict settings reject legitimate transactions. Accept partial AVS matches for domestic orders. Always require CVV. See the AVS/CVV section above for specific adjustments.
3. Offer Alternative Payment Methods
When a card is declined, give the customer another way to pay: a different card, ACH/bank transfer, digital wallets (Apple Pay, Google Pay), or buy-now-pay-later options. Adding ACH alone can boost checkout conversion by 5–7%.
4. Display Clear Decline Messages
Don’t show your customer “Error: code 05.” Tell them: “Your bank declined this transaction. Please try a different card or contact your bank.” Clear messaging reduces customer frustration and increases the chance they’ll complete the purchase with another method.
5. Implement Smart Retry Logic
For subscription and recurring billing, implement retry logic that waits 24–72 hours before reattempting a failed charge. Don’t retry immediately and don’t retry more than 2–3 times total. Some gateways and CRMs offer automated retry with configurable intervals.
6. Cascade to a Backup Processor
If you have multiple merchant accounts, route a declined transaction to a backup processor automatically. Different processors use different acquiring banks, and a transaction that fails through one may succeed through another. This is called cascading and can recover 3–5% of declined transactions. For details on multi-processor setups, contact DirectPayNet.
7. Check Your MCC
If you’re seeing a high volume of do-not-honor declines from specific banks, your merchant category code may be the issue. Some MCCs are blocked by certain issuing banks. Verify your MCC matches your actual business and consider whether a different code would reduce your decline rate.
8. Limit Retry Attempts
Set a maximum of 2 retries per transaction in your gateway. If the card doesn’t go through on the second attempt, it won’t go through on the fifth. Excessive retries flag your account and can lead to the customer’s card being locked.
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Stop Losing Sales to Decline Codes
Do Not Honor declines are the most common and most costly decline code in payment processing. The difference between a 10% decline rate and a 7% decline rate is thousands of dollars in recovered revenue every month.
DirectPayNet helps merchants reduce decline rates through optimized payment processing, multi-processor cascading, MCC optimization, and dedicated merchant accounts that give you more control over your gateway settings than any aggregator.If you’re using Stripe as your primary processor and seeing high decline rates, it may be time to explore alternatives that give you better tools to fight declines.
Frequently Asked Questions
“Do Not Honor” (decline code 05) means the cardholder’s issuing bank has refused the transaction. It’s the most common decline code and is intentionally vague — the bank doesn’t specify whether the issue is insufficient funds, suspected fraud, a security restriction, or something else. Whether you see it displayed as “declined do not honor,” “do not honor card declined,” or simply “do not honor” on a card transaction, the meaning is the same. The customer should contact their bank for the specific reason.
Decline code 05 is the numeric code for “Do Not Honor.” It’s a hard decline issued by the card issuer indicating the transaction is blocked. You may also see it displayed as do_not_honor in your Stripe dashboard or gateway logs. This code applies to all card networks — Visa, Mastercard, American Express, and Discover. It’s not specific to any payment processor like Stripe or PayPal.
Not exactly, but they overlap. Decline code 51 specifically means insufficient funds. Decline code 05 is broader — it can mean insufficient funds, but it can also mean suspected fraud, AVS mismatch, bank restrictions, or other issues. Some banks use code 05 instead of 51 even when the real reason is insufficient funds, making the two interchangeable in practice.
You can’t override the issuing bank’s decision, but you can reduce the frequency of these declines. Enable 3D Secure, optimize your AVS/CVV gateway settings, offer alternative payment methods, implement smart retry logic (wait 24 hours, not immediate), and cascade to a backup processor. See our full list of strategies to reduce credit card declines.
It means the billing address or security code the customer entered doesn’t match what the bank has on file. AVS checks the street address and ZIP code. CVV checks the 3- or 4-digit security code. Review your payment gateway’s AVS settings — overly strict settings reject legitimate transactions. Accept partial matches for domestic orders and consider relaxing AVS for international transactions.
Not immediately. Wait at least 24 hours and only retry after the customer has contacted their bank. For card-not-present transactions, retrying before 24 hours can forfeit your reversal rights on future chargebacks. Set a maximum of 2 retries. If it fails twice, ask the customer to use a different payment method.
Yes. High decline rates signal risk to your payment processor. On Stripe, high declines can trigger account holds or increased scrutiny. On a dedicated merchant account, your processor may raise your rates or require additional documentation. Keeping your decline rate below 10% is a good benchmark — below 5% is excellent.
Other Common Decline Codes
Do Not Honor is the most frequent decline code, but it’s not the only one you’ll encounter. Here are the other codes merchants see most often:
| Code | Meaning | What to Do |
| 05 | Do Not Honor | Wait 24 hours, ask customer to call bank, offer alt payment |
| 51 | Insufficient Funds | Customer needs more funds or a different card. Offer installments or ACH |
| 04 | Pick Up Card | Do NOT retry. Card reported lost/stolen. Ask for different payment method |
| 03 | Invalid Merchant | Issue with your merchant account setup. Check MID and gateway config |
| 14 | Invalid Card Number | Customer entered wrong card number. Ask to re-enter |
| 54 | Expired Card | Card past expiration. Customer needs to update card details |
| 59 | Suspected Fraud | Bank flagged as fraud. Customer must call bank to clear |
| MCC | Issuer Declined MCC | Bank doesn’t allow your merchant category. Check MCC assignment |
For the full list, see our complete guide to credit card decline codes.
