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Transactions of this market type cannot be processed on this system

We are having issues with one of our customers. We are using IDTECH encrypted readers and's API for sending the DUKPT to for processing. We are able to perform transactions 100% with no problems. We are also able to perform both Void's and Refunds.


Our customer can perform transactions with no problems but when they attempt to refund a transaction, our software is receiving error 87: Transactions of this market type cannot be processed on this system.


We are using Market type; 2 (Retail) and Device Type: 7 (Wireless POS).

As mentioned, same code works on our account but refunds does not work on theirs. From the list of possible issues, we see that it can relate to their Auth account setup?

If this is so, how can they perform a transaction but not refund? I would expect both transactions and refunds not to work?


Please help