Error: ((0)) Do Not Honor(05) Please Try Again or Contact Us for Assistance.

The 05: Practise Not Honor card declined response is the about common and general 'refuse' bulletin for transactions that are blocked past the bank that issued the card. This week Finance Monthly hears from Chris Laumans, Adyen Product Owner, on the complexities of this mysterious and vague transaction response.

05: Do Not Honor may be the largest frustration for whatever merchant that regularly analyses their transactions. Although it oft accounts for the majority of refusals, it is as well the vaguest reason, leaving merchants and their customers at a loss near how to deed in response.

Although unfortunately there isn't an easy, single answer about what this refusal reason ways, there are several suggestions equally to what could be the cause backside the non-descript message. So what might the 05: Do Non Honour mean? From our experiences analysing authorisation rates and working with issuers and schemes, here are some plausible explanations.

Insufficient funds in disguise

In probably half of the cases, 05: Do Not Honor is likely just an Insufficient Fund refusal in disguise. Reality is that some issuers (or their processors) do a poor job of returning the appropriate refusal reasons back to the merchants. This is both due to the use of legacy systems at the issuer side likewise there being no mandates or monitoring by the schemes on this, letting issuers go on to use it equally a blanket term.

By looking at the data from various banks, it is piece of cake to see how "Do Not Award" and Insufficient Funds can oftentimes be used interchangeably. Records that testify a disproportionately high level of Do Not Honor and a low level of Bereft Fund refusals would advise 1 masquerading every bit the other. Given that Insufficient Funds is 1 of the nearly common refusal reasons, ii^nd perchance merely to "Do Not Honor", it makes sense that "Do Non Honor" by some banks may actually stand for Bereft Funds.

Refusal due to credential mismatches

Although the words "Practise Non Award" aren't the most revealing, sometimes other information points in the payment response tin can exist clues for the refusal. Obvious things to look at are the CVC response, bill of fare 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 Honor" as the grab-all bucket for other denials.

Suspicion of fraud

The near appropriate apply of "05: Practise Not Honor" would be for declining transactions due to suspicious activity on the bill of fare. In some cases, although the carte du jour is in good 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 instance, a loftier value transaction made at 3am from a foreign based merchant without any extra authentication, likely volition trigger a few too many chance checks on the issuer side. These types of refusals will once again unfortunately be designated into the "05: Do Not Honor" category, with merchants cartoon the short straw. Fifty-fifty though issuers may exist able to point to specific reasons why the transaction was refused, issuers have no style to communicate this back to the merchant.

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

Collateral damage

Finally, the reality is that your likely non the only merchant that a given shopper interacts with. Regardless of how good your business organisation is or how make clean your traffic is, a shopper's recent history with other merchants will influence the issuers determination on your transaction. For lack of a better reason, the catch-all 05: Do Not Award refusal in some cases be seen as "Collateral harm". If the shopper coincidentally simply made a large buy on a high-risk website or went on a shopping spree before reaching your store, at that place is the possibility that the issuer may pass up the transaction at that moment in fourth dimension. In these cases, at that place is unfortunately very little that can be done, except to ask for another bill of fare or to try again later.

Hopefully this helps shed some light on the possible reasons why '05: Practise Not Honor' is so dominant in the payment infinite and that there is no unmarried reason for this response. Adyen'south advice to dealing with these refusals is to look at the data at private issuer/BIN levels and from in that location, try to distil patterns particular to those bank's shoppers.

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

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