Processing restrictions

The purpose of the processing restrictions is to see if the card should be used. Three data elements read in the previous step are checked.

• Application version number
• Application usage control (This shows whether the card is only for domestic use, etc.)
• Application effective/expiration dates checking.

If any of these checks fails, the card is not necessarily declined. The terminal sets the appropriate bit in the terminal verification results (TVR), the components of which form the basis of an accept/decline decision later in the transaction flow. This feature lets, for example, card issuers permit cardholders to keep using expired cards after their expiry date, but for all transactions with an expired card to be performed on-line