What Does “TXN Not Allowed” Mean on a Card Machine
Published date: 16.02.2026
Last updated: 16.02.2026
The “TXN Not Allowed” message on a card payment device is a decline message and means that the transaction cannot be completed due to a specific reason or restrictions related to the card, account, or terminal setup.
If you’re a business that uses a card machine to collect payments from customers, you might come across this issue sooner or later. This terminal message generally appears for a small set of specific decline reasons rather than for all declines.
In most implementations, “TXN Not Allowed” maps to ISO 8583 decline codes such as:
- 57: Transaction not permitted to cardholder;
- 58: Transaction not permitted to terminal/merchant;
- 62: Restricted card.
Different terminals may use slightly different wording, but other decline causes (like invalid card number or expired card) typically display their own specific messages and codes.
In the following sections, we take a deep dive into the “TXN Not Allowed” message, clarifying what it means, why it appears, and what you can do about it.
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Common Reasons for “TXN Not Allowed”
In short, “TXN Not Allowed” typically indicates the transaction type isn’t allowed either for the cardholder (code 57) or at the merchant/terminal (code 58). Some restricted-card scenarios (code 62) can also surface similar wording.
Below are the most common underlying causes.
Transaction Type Not Permitted by Card Issuer (Code 57)
In this scenario, the issuer has restricted the cardholder from performing the attempted transaction.
Examples include:
- Card limited to domestic transactions only (international blocked);
- E-commerce, mail/telephone order, or keyed-entry not enabled;
- Cash advance or cashback not allowed on the card;
- Preauthorisations, recurring payments, or certain MCCs (merchant categories) blocked;
- Card not yet activated or usage limited by issuer policy.
In these cases, the cardholder may need to use a different card or contact their issuer to enable the specific transaction type.
Transaction Type Not Permitted to Terminal/Merchant (Code 58)
In this case, the acquiring side, merchant account, or terminal configuration does not allow the attempted transaction.
Examples include:
- Terminal not enabled for refunds, preauthorisations, recurring payments, or cash advance/cashback;
- Specific card brands or schemes (e.g., American Express) not enabled;
- Merchant account or MCC restricted from certain services by the acquirer or card networks;
- Entry mode attempted (e.g., manual key entry) is disabled on the terminal.
Resolving this usually requires adjusting merchant account settings or terminal parameters with your payment processor.
Restricted Card (Code 62)
In this case, the card itself is restricted for the attempted use.
Examples here include:
- Region or country blocks (card not allowed to be used in this geography);
- Service code or usage restrictions encoded on the card (e.g., swipe fallback not allowed).
If this happens, the cardholder will typically need to use another card or ask their issuer to lift the restriction.
Incorrect Terminal Configuration
If the terminal isn’t configured for the card brand, transaction type, or entry method you’re attempting, you may see “TXN Not Allowed.” This is often a code 58 scenario.
In this case, ensure your device and merchant account support the specific scheme, transaction type, and entry mode.
Payment Processor or Merchant Restrictions
Your payment processor may also restrict certain transaction types for your business or merchant category codes (MCC).
For instance, some merchants cannot process cash advances, some can’t accept international transactions, and some products or industries face heightened restrictions. This also typically aligns with code 58.
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Declines Commonly Mistaken for “TXN Not Allowed”
These are separate declines that usually display their own messages and codes rather than “TXN Not Allowed”:
- Refer to issuer (codes 01/02): Indicates the cardholder/merchant should contact the issuer for more information. It does not imply the customer needs a new card.
- Invalid amount (code 13): The amount or format sent was not acceptable.
- Invalid card number (code 14): The PAN was mistyped or not recognised.
- Expired card (code 54): The card’s expiration date has passed.
- Lost or stolen card (codes 41/43): Typically shows a “Pick up card” or specific lost/stolen message.
Other fraud-related declines such as 05 Do not honor or 59 Suspected fraud usually appear with their own phrasing and do not present as “TXN Not Allowed.”
Steps to Resolve a “TXN Not Allowed” Issue
If you do see a “TXN Not Allowed” code, don’t panic. There are a few targeted steps you can take.
Inform the Customer
First, always inform the customer about any declined transactions. Politely explain that the payment couldn’t be authorised because this type of transaction isn’t allowed for this card or at this terminal.
Then suggest another payment method such as mobile wallet, bank transfer, another card, or cash, depending on what you accept.
At this point, avoid attributing the decline to the issuer unless you have the exact code confirming that. If the code points to a cardholder or card restriction, the customer’s issuer will need to lift the block or the customer can present another card.
Retrieve the Exact Decline Code
Check the merchant receipt, terminal error details, or your processor/acquirer portal for the numeric decline code (e.g., 57, 58, 62).
This is the fastest way to diagnose the root cause and be able to plan the best next steps.
Check for Terminal or Merchant Configuration Issues
Confirm the terminal and merchant account are enabled for:
- The specific card brand or scheme (e.g., Amex);
- The attempted transaction type (refunds, preauths, recurring, cash advance or cashback, keyed entry);
- The relevant region, currency and MCC permissions.
Your payment processor can verify and adjust settings if needed.
Try an Allowed Entry Method or Transaction Variant
If appropriate, you can switch to an enabled entry mode. This means chip instead of magstripe, or contactless instead of chip if permitted.
Another thing to try is removing disallowed elements (e.g., no cashback).
Keep in mind that a simple blind retry usually won’t resolve codes 57/58.
Contact Your Payment Processor for Assistance
If the issue persists, your processor can confirm the decline code, review your account configuration, and advise on enabling any required capabilities.
Be as detailed as possible when describing the situation, and make sure you’ve collected as much information on the potential reasons for decline.
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How To Prevent “TXN Not Allowed” Errors
Apart from reacting to “TXN Not Allowed” to solve the problem, there are also a set of measures you can take to prevent these errors in the first place.
These include:
- Keep your POS systems updated. Ensure your terminals run current software and parameter sets so they support the latest schemes, security rules, and transaction types.
- Enable comprehensive card acceptance. Work with your processor to enable the card brands and transaction types you need (e.g., international, refunds, preauths, recurring, keyed entry) and confirm your MCC permits them.
- Educate staff on payment error codes. Train them to recognise common decline codes (particularly 57/58/62) and follow clear next steps: check configuration (58), suggest another card/contact issuer (57/62), and escalate to your processor when needed.
- Communicate transaction policies. Set clear customer expectations about accepted payment methods, any limits (e.g., no cashback), and applicable restrictions (e.g., card present only), reducing confusion at checkout.
Overall, "TXN Not Allowed" signifies that the attempted service isn’t permitted for this card (often code 57) or at this merchant/terminal (often code 58), and sometimes reflects a restricted card (code 62).
By identifying the exact decline code and applying the targeted fixes above, businesses can resolve or mitigate these errors quickly and efficiently.
Frequently Asked Questions
What does “TXN” Mean in “TXN Not Allowed”?
TXN in “TXN Not Allowed” stands for Transaction. It is a common abbreviation used by banks and payment systems.
Does “TXN Not Allowed” mean the card is blocked?
Not necessarily. It can mean the cardholder isn’t permitted to perform that transaction (code 57), the card is restricted (code 62), or that the merchant/terminal isn’t enabled for the attempted transaction (code 58). It does not always indicate an issuer block.
What are hard declines?
Hard declines are definitive denials that will not succeed without changing a fundamental factor (for example, using a different card, enabling a blocked service, or funding the account). Insufficient funds (code 51), invalid card number (code 14), and expired card (code 54) are typically treated as hard declines for the attempted transaction.
What are soft declines?
Soft declines are temporary or conditional declines that may succeed if you change how you attempt the payment (for example, completing required authentication or using a different entry method) or retry later as advised by your processor/issuer.
