August 28, 2025 · 11 mins read
Santosh Kumar
The use of credit cards has evolved into one of the most popular and convenient ways of making a purchase, online or offline. When a cardholder is making a payment, unexpected error messages come in the way, interrupting the transactions taking place. One of the most widespread and incomprehensible messages is: Transaction not permitted to cardholder. This mistake evokes panic in many individuals since they are concerned about whether their card was blocked, they have crossed their limits, or there is something wrong with the merchant.
The message may also vary slightly, including- credit card transaction not permitted. Both editions highlight limitations imposed either by the card issuer, the payment gateway or even the system, which may impose limits sometimes imposed by the system of the merchant. It may sound technical, but in reality, it is rather simple evidence of the inability of the performed transaction type (mentioned in the specific setting), that is, not permitted under the settings or the conditions by which the card is used.
It is important that every credit card user knows why this message reaches him/her. Being aware of the causes, you can easily defuse the situation and prevent unnecessary tension, so that in the future, you will have no problems with your payments. This article will discuss in detail the causes, solutions, and preventative measures.
The expectations of most people when using a credit card are that transactions should go through well. Although it is possible that at times, the bank or payment system may reject a request and present the message, indicating that the transaction is not allowed to the cardholder. This error simply implies that the introductory type of transaction that you are still attempting is disallowed by the established rules, settings or restrictions of your card. It is not necessarily an indication of fraud, nor a long-term issue with your card. Rather, it is subject to a temporary block or condition of the card issuer.
In other cases, the message could show up as a display of a credit card transaction not allowed. The two phrases look similar, but there is some slight divergence. When that cardholder is actually blocked by the bank, this message reflects as a transaction not permitted to the cardholder. On the other hand, credit card transaction not permitted is notable when restrictions come in the form of the card network or the merchant. As an example, the merchant terminal does not accept your card type, or the transaction type is blocked by payment gateway.
These messages are usually evident in a number of scenarios in our daily lives. As an example, you can get them when attempting to withdraw cash at an ATM without a cash advance, paying abroad without international usage enabled or trying to make a purchase with a merchant that does not accept your type of cards. They can also be noted in case your card has been temporarily blocked by your bank because of suspicious activity.
In a word, both prompts suggest that the system is not allowing your credit card to be utilised to commit a certain kind of transaction. Understanding the reason why the errors occurred can guide you to rectify the problem fast and use your card conveniently.
These cases, when you receive messages, such as transaction not permitted to cardholder or credit card transaction not permitted, might not be your fault or your bank's, but in the technical payments processing systems. Knowing these technical causes can help you find the location of the problem quickly so as to solve it.
When you execute a payment online, it is transmitted through a payment gateway. Through the gateway, the card cannot be verified, unusual activity is detected, or there is a connectivity problem, then your request can be declined. In such instances, the system gives an error notification, such as a transaction not allowed by credit cards. This is more frequent when online shopping or when conducting online payments for a digital subscription package.
Each of the merchants has a Merchant Category Code that designates the nature of its business (e.g. travel, gaming, or financial services). Other banks have limitations on some MCCs to ensure cardholders do not engage in risky purchases. As a practical example, suppose your card cannot make transactions in a gambling category, in which case your card will report a transaction not permitted to the cardholder, identifying that you have attempted to make an unauthorised transaction. This is done under a restriction on grounds of security or compliance.
Restrictions can also be imposed by banks, and global card networks such as Visa, MasterCard and RuPay as well. Transaction uncertainties may be prevented, and those that do not meet their guidelines automatically hindered. An example of a message credit card transaction not permitted is when a merchant is flagged as suspicious or works in a restricted country, and the network initiates this message.
Also Read: How to Set Limits for UPI Transactions on Credit Cards
1: Every bank imposes daily spending or withdrawal limits
2: When you exceed this threshold, you can face a message including transaction not permitted to cardholder.
1: Frequent cash payments within a given period of time, unusual spending habits and locations or sudden spending of high values are red flags.
2: To avoid your banks rejecting payments claiming the error of the unauthorised credit card transaction.
1: Most credit cards are not set up for international transactions.
2: As long as you do not activate worldwide use, payments in other countries may fail.
1: In case a bank is not sure of the safety of a transaction, it may temporarily block it.
2: The system then displays a message, showing that you are not allowed to charge a cardholder, for your protection.
Also Read: How to Set Credit Card Bill Payment Reminders?
1: A few cards may be activated separately at the ATM, POS or online.
2: A transaction not permitted to a cardholder may be viewed with deactivation.
1: Swiping a debit card that has expired results in an immediate decline
2: New cards are also activated prior to use.
1: Late bill payments, suspicious transactions, or customer requests may lock the card.
2: When this happens, you will receive a credit card transaction not permitted " error.
1: To avoid fraud and secure use of the cards.
2: These measures protect the customers but are inconvenient.
Also Read: Credit Limit vs Available Limit – What's the Difference?
1: Other merchants will accept only Visa and MasterCard and decline to accept RuPay/Amex.
2: This leads to credit card transactions not being allowed.
1: Poor internet connection, an error in the machine or a down server can impede transactions.
2: The system can then display, transaction not permitted to cardholder.
1: In creating a proper card acceptance setting, merchants will need to ensure that they create a proper setting.
2: Unless configured, your card will be declined.
1: This is usually resolved due to repetition, the use of an alternative POS or alternative payment methods.
Also Read: What Is Revolving Credit and How It Works
It is annoying when you see various messages telling you that a transaction is not permitted to the cardholder or that it is a credit card transaction not permitted. The silver lining, though, is that these problems can most often be solved in a few simple steps.
1: There are also individual settings for online payments and POS transactions, as well as international usage of many of the cards.
2: Visit the App or net banking of the bank and make sure that the relevant facility is activated.
3: As an example, when international transactions are turned off, global payments will not succeed and will display transaction not permitted to cardholder.
1: Banks frequently place daily or monthly limits on the money that can be spent and withdrawn.
2: This is so that in case you exceed this amount, other transactions will be rejected by the system.
3: Their limit can be adjusted on the bank app, or rejoice that the limit change can help avoid the credit card transaction not permitted error.
1: When you are unable to establish the cause, call customer care.
2: Banks are able to verify whether the blocking is on suspicion of suspicious activity or as a result of technical constraints.
3: They are also able to restart services at any given time instantaneously.
1: To make immediate payments, use UPI, net banking, or another credit card.
2: This will enable your transaction to go through as you sort the issue out.
Also Read: How to Choose a Card Based on Your Spending Pattern?
1: There are cases in which the merchant accepts only certain networks, such as MasterCard or Visa.
2: In this instance, it is preferable to use a supported card so that the credit card transaction not permitted message does not appear.
Credit card transactions are now part and parcel of any payment system, but the problem is that the error messages that appear on the screen, which state that the transaction is not permitted to a cardholder or that the credit card transaction is not permitted, leave many users worried and confused about the situation. In a practical sense, these messages are not permanent challenges but mere alerts that some restrictions, limits or technical factors are inhibiting the transaction.
The reasons can be various, as they can be based on the daily spending limits, suspicious activity flags, and cardholder settings, as well as merchant-related issues or payment gateway restrictions. These blocks protect the cardholders against fraud and misuse, even though this is at the expense of the cardholders by causing inconvenience in most cases.
The positive issue here is that the correction of such errors is normally easy. This can be solved by conducting card settings, checking limits, phone contact with the bank, or another mode of payment. In addition, it would help avoid future inconveniences by facilitating the appropriate services in advance without forgetting to track the status of your card.
In a word, the message in the form of a transaction not permitted to the cardholder or a credit card transaction not permitted is supposed to be interpreted as a shielding action rather than an absolute denial. By paying attention and taking swift action, cardholders can keep making smooth, clean and strain-free credit card purchases.
Also Read: What to Do If There’s an Error in Your Credit Card Statement?
This message indicates that your bank has blocked the kind of transaction you are trying to make. As an example, your card might not be activated for overseas, cash-out, or e-commerce use. In cases like that, the system displays transaction not permitted to cardholder.
This is an error that generally occurs when the problem lies within the merchant, payment gateway or card network. As an example, when the merchant does not support your type of card or the transaction type is blocked, you can get a "credit card transaction not permitted" error.
No, it is not always so. In most cases, this is a temporary ban for security reasons. When you change settings or communicate with your bank, the card will operate as usual.
1: Alter your card settings (Internet usage, international usage, and PIN settings).
2: Restrict on transaction limits
3: Contact your bank to help you.
4: Check that the merchant accepts your card.
Messages such as transaction not permitted to cardholder or credit card transaction not permitted do not have any immediate effect on a credit score. There are types of things which indirectly could influence it, i.e. unpaid bills, blocked cards, etc.
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