diff --git a/src/exchange/taler-exchange-httpd_deposit.c b/src/exchange/taler-exchange-httpd_deposit.c
index fa6a3232f..5d38de82e 100644
--- a/src/exchange/taler-exchange-httpd_deposit.c
+++ b/src/exchange/taler-exchange-httpd_deposit.c
@@ -282,6 +282,10 @@ TEH_handler_deposit (struct MHD_Connection *connection,
       return MHD_YES; /* failure */
     }
   }
+
+  /* set the state of the policy presence in the deposit struct */
+  deposit.has_policy_details = ! no_policy_details;
+
   /* validate merchant's wire details (as far as we can) */
   {
     char *emsg;
@@ -330,8 +334,7 @@ TEH_handler_deposit (struct MHD_Connection *connection,
   dc.deposit = &deposit;
 
   /* Check policy */
-  deposit.has_policy_details = ! no_policy_details;
-  if (! deposit.has_policy_details)
+  if (deposit.has_policy_details)
   {
     const char *error_hint = NULL;
     if (GNUNET_OK !=