Error: ((0)) Do Not Honor(05) Please Try Again.

The 05: Do Not Honour carte du jour declined response is the most mutual and general 'reject' message for transactions that are blocked by the bank that issued the card. This week Finance Monthly hears from Chris Laumans, Adyen Product Possessor, on the complexities of this mysterious and vague transaction response.

05: Practise Not Honor may be the largest frustration for any merchant that regularly analyses their transactions. Although it frequently accounts for the majority of refusals, information technology is too the vaguest reason, leaving merchants and their customers at a loss nigh how to act in response.

Although unfortunately there isn't an easy, unmarried answer near what this refusal reason means, there are several suggestions every bit to what could exist the cause behind the non-descript bulletin. So what might the 05: Do Not Honor mean? From our experiences analysing say-so rates and working with issuers and schemes, here are some plausible explanations.

Insufficient funds in disguise

In probably half of the cases, 05: Exercise Not Accolade is likely simply an Insufficient Fund refusal in disguise. Reality is that some issuers (or their processors) do a poor task of returning the appropriate refusal reasons back to the merchants. This is both due to the use of legacy systems at the issuer side also there being no mandates or monitoring past the schemes on this, letting issuers continue to employ it as a blanket term.

By looking at the data from various banks, it is easy to see how "Practise Non Honor" and Insufficient Funds tin can often be used interchangeably. Records that testify a disproportionately high level of Do Not Honor and a low level of Insufficient Fund refusals would propose i masquerading as the other. Given that Bereft Funds is one of the virtually mutual refusal reasons, 2^nd maybe only to "Do Not Honor", it makes sense that "Do Not Honor" past some banks may actually represent Insufficient Funds.

Refusal due to credential mismatches

Although the words "Exercise Non Honor" aren't the most revealing, sometimes other information points in the payment response can exist clues for the refusal. Obvious things to look at are the CVC response, card expiry date, and, to a bottom extent, the AVS response. For lack of a better reason, issuers will frequently default to using "05: Do Not Award" as the grab-all saucepan for other denials.

Suspicion of fraud

The most appropriate use of "05: Do Not Honor" would be for declining transactions due to suspicious activity on the card. In some cases, although the carte du jour is in practiced standing and has not been reported lost or stolen, an issuer might choose to err on the side of circumspection due to a combination of characteristics on a given transaction. For example, a high value transaction made at 3am from a foreign based merchant without any extra authentication, likely will trigger a few as well many gamble checks on the issuer side. These types of refusals volition again unfortunately exist designated into the "05: Do Non Honor" category, with merchants cartoon the short straw. Even though issuers may be able to betoken to specific reasons why the transaction was refused, issuers have no mode to communicate this back to the merchant.

Some astute merchants might indicate out that issuers should be able to use "59: Suspected fraud" in these cases. Some issuers nonetheless remap these 59 refusal reasons to 05 before sending the response to the acquirer to protect store owners in the POS environs and avert uncomfortable situations with the shopper standing in front of them.

Collateral damage

Finally, the reality is that your likely not the merely merchant that a given shopper interacts with. Regardless of how adept your business is or how clean your traffic is, a shopper's recent history with other merchants volition influence the issuers decision on your transaction. For lack of a better reason, the catch-all 05: Do Non Honor refusal in some cases be seen equally "Collateral damage". If the shopper coincidentally just made a big purchase on a high-risk website or went on a shopping spree earlier reaching your shop, at that place is the possibility that the issuer may decline the transaction at that moment in time. In these cases, in that location is unfortunately very little that can exist washed, except to ask for another card or to endeavor again after.

Hopefully this helps shed some lite on the possible reasons why '05: Do Not Honor' is then dominant in the payment space and that in that location is no single reason for this response. Adyen'south advice to dealing with these refusals is to await at the data at individual issuer/BIN levels and from there, try to distil patterns item to those banking company'south shoppers.

haganforneonand.blogspot.com

Source: https://www.finance-monthly.com/2018/08/understanding-05-do-not-honor/

Share this post