I've seen it in movies.

There are a few versions of “pick up card” responses that require the merchant to hold on to the card and contact the issuing bank. I’m not sure if a bank would instruct them to destroy it, probably more likely they’d ask the merchant to hold on to it until law enforcement showed up.

https://www.totalmerchantconcepts.com/educational-resources/credit-card-issuer-response-codes.html