Payments & Declines

Restricted Card

The card cannot be used for certain transactions due to issuer restrictions.

Definition

What does "restricted card" mean?

Restricted card is a decline code indicating the card cannot be used for certain types of transactions due to limitations set by the issuing bank. These restrictions may apply to specific merchant categories, geographic regions, transaction amounts, or online purchases.

Common restrictions

Issuers may restrict cards from international transactions, online-only purchases, recurring billing, or specific merchant category codes (MCCs). Some prepaid or corporate cards are issued with spending restrictions that prevent subscription charges. The cardholder may or may not be aware of these limitations.

Recovery approach

Restricted card is generally treated as a hard decline for the specific transaction type. Retrying will produce the same result since the restriction is policy-based, not temporary. The best approach is to notify the customer that their card has restrictions preventing the subscription charge and ask them to provide an alternative payment method or contact their bank to adjust the card's settings.

Related Terms

→ Dunning

→ Chargeback

→ MRR (Monthly Recurring Revenue)

Frequently Asked Questions

Can a restricted card decline be resolved with a retry?

No. Card restrictions are policy-based and persistent. Retrying the same card for the same transaction type will produce the same decline.

Why would a card be restricted for subscription payments?

Common reasons include restrictions on online purchases, international transactions, recurring billing, or specific merchant categories. Some prepaid and corporate cards also have spending limitations.

What should I tell the customer?

Let them know their card has restrictions preventing the charge and suggest they either provide an alternative card or contact their bank to adjust the card's transaction settings.