(0002) Transaction could not be processed

• WordPress version 6.7.1
• WooCommerce version 9.4.3
• Clover Payments version 2.0.0

I keep getting the (0002) Transaction could not be processed error. I’m in sandbox mode and have the merchant ID, public key, and private key entered in the settings. I changed to the Twenty Twenty-Five theme and disabled every plugin except for WooCommerce and Clover Payments and still get the error.

In the logs, it says “Clover Payments is not enabled” and then says “Merchant ID is not set” even though it’s clearly enabled and the merchant ID is set.

What is the issue and how do I fix it?