PaymentRetryAlertDecline code 03: invalid merchant
What decline code 03 means
The issuer does not recognise the merchant or the merchant category as valid for this card. Usually a configuration problem on the acquiring side, not a cardholder problem.
Should you retry?
Do not retry. Contact your acquirer or processor to check the merchant ID and MCC setup.
Retrying hard declines costs money. Visa limits reattempts on a card to 15 in 30 days, and Mastercard charges for attempts beyond its thresholds and for every retry after a Merchant Advice Code 03 or 21. Route this decline to account updater or customer outreach instead. See soft vs hard declines.
Equivalent codes
- Stripe decline code:
invalid_account
Frequently asked questions
Is decline code 03 a soft or hard decline?
Hard decline (do not retry). The issuer does not recognise the merchant or the merchant category as valid for this card. Usually a configuration problem on the acquiring side, not a cardholder problem.
Should I retry a payment that failed with decline code 03?
Do not retry. Contact your acquirer or processor to check the merchant ID and MCC setup.
Other response codes
61Exceeds withdrawal amount limit65Exceeds withdrawal frequency limit05Do not honor01Refer to card issuer04Capture card12Invalid transaction13Invalid amount14Invalid card number- All decline codes
Reference information for merchants. Network rules and fee schedules change; confirm current figures with your acquirer. Mastercard is a registered trademark of Mastercard International Incorporated, which does not sponsor or endorse this service.