> ## Documentation Index
> Fetch the complete documentation index at: https://docs.paypal.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Merchant not enabled for reference transaction

Returns from the Payments V1 API.

`MERCHANT_NOT_ENABLED_FOR_REFERENCE_TRANSACTION` indicates that the merchant account is not configured to perform reference transactions.

| Cause                                                                                                                                                                                                                                                                                                                                                                                | Impact                                                                                                                                                                                                                                           | Resolution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| :----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | :----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| - Unconfigured account: The merchant account is not configured or approved to handle reference transactions. Reference transactions require specific permissions and account settings that PayPal does not enable by default on all accounts. <br /> - Failed attempt: The merchant attempts a reference transaction without enabling the necessary permissions or account settings. | - Failed payment attempt: The merchant cannot process reference transactions for recurring billing, subscriptions, or other post-payment transactions. <br /> - Business disruptions: Services that depend on automated billing fail to operate. | - [Contact customer support](https://www.paypal.com/us/cshelp/contact-us): Send a request to customer support to enable reference transactions for your account. Enabling reference transactions may require you to provide additional information about your account. <br /> - Review account settings: Configure your account settings to support reference transactions. <br /> - For more information, see [Initiate future transactions](https://developer.paypal.com/docs/checkout/advanced/customize/reference-transactions/). |