What is the difference between decline codes 04 and 07?

Both instruct the terminal to capture the card, but 07 specifically indicates a fraud condition on the account. Code 04 can result from loss, closure, or reissue; 07 means the issuer has flagged actual fraud.

Am I liable if someone uses a fraud-flagged card on my site?

The authorization was declined, so no charge occurred and no direct loss follows. Your exposure is indirect: high volumes of fraud-flagged attempts hurt your standing with your acquirer, so invest in blocking this traffic before authorization.

Decline code · Hard decline

Decline code 07: Pick Up Card, Special Condition (Fraud)

The issuer is ordering the card confiscated because the account is flagged for fraud. This is more severe than a standard pick-up response; the issuer has affirmatively identified the card as compromised or fraudulently used. Online, it means the card is hard-blocked and the attempt itself is a fraud signal.

Should you retry?

Never. This is a permanent, fraud-flagged block that no retry, delay, or alternate routing will lift, and reattempting a fraud-flagged card can create liability and network compliance problems for you.

Why code 07 happens

The card number appears in confirmed fraud activity and the issuer has locked it in capture status.
The account was taken over and the issuer froze it while investigating.
The card data was part of a known breach and the issuer proactively flagged it before reissue.
A fraud ring is cycling through compromised cards and this one has already been burned at other merchants.

What to do about it

Decline the order outright and do not offer a retry path for this card.
Treat the session as hostile until proven otherwise: check IP reputation, device fingerprint, email age, and shipping address against your fraud rules.
Block the PAN hash from future attempts on your platform to stop testers from recycling it.
If you see multiple 07 responses in a short window, enable stricter checkout controls immediately because you are likely mid card-testing attack.

Frequently asked questions

What is the difference between decline codes 04 and 07?: Both instruct the terminal to capture the card, but 07 specifically indicates a fraud condition on the account. Code 04 can result from loss, closure, or reissue; 07 means the issuer has flagged actual fraud.
Am I liable if someone uses a fraud-flagged card on my site?: The authorization was declined, so no charge occurred and no direct loss follows. Your exposure is indirect: high volumes of fraud-flagged attempts hurt your standing with your acquirer, so invest in blocking this traffic before authorization.

Related decline codes