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What do you mean, downgrade trading is not allowed?
Downgrade transactions are not allowed, that is, the composite magnetic stripe on the payment terminal does not support reading the magnetic stripe for transactions. Credit card chips do not use chip exchange, but use magnetic stripe exchange, which is generally considered as low-level exchange. If the POS machine sends a message that the downgrade transaction is not allowed, it means that this transaction can only be completed with IC chips, and the POS machine cannot read the magnetic stripe.

When paying by credit card, the bank card does not support downgrade transaction. It may be that the bank card is damaged and not read, or the payment terminal is faulty. If there is nothing wrong with the payment terminal, you should contact the bank staff, who will ask the reason and handle it.

The downgrade transaction appears together with the chip magnetic stripe composite card. Updating the acceptance equipment requires a process. Originally, the composite card with safer chip transaction could be used. However, because the acceptance terminal such as POS machine does not support chip card transaction, or the chip may be damaged and unreadable, the financial transaction will be completed with magnetic stripe. This process is a degraded transaction. The main reason for this phenomenon is that cashiers have long formed the habit of accepting magnetic stripe cards. On the terminal with chip acceptance function, the cashier still accepts the financial ic card by brushing the magnetic stripe, which reduces the security of the financial IC card transaction, which is called degraded transaction in the industry.

What is the solution to the degraded transaction displayed by POS machine?

When a magnetic stripe card is replaced by a chip card, the magnetic stripe is easily demagnetized and copied, thus being stolen by criminals. This is the reason why the magnetic stripe card is unsafe, because UnionPay issued an announcement requesting that the magnetic stripe card be replaced with a safer chip. At present, many banks will remind users to use chip cards on ATM machines.