I am not familiar with this issue, however, I searched the knowledgebase and found some steps that may help you.
Setup the CAC/PIV Smart Card Authentication Plugin
Unable to Print Using Secure Print
If you still need help with this issue, I would recommend contacting Support and ask to speak with 2nd Level. You will need your device serial number so they can authenticate you. 1-800-821-2797.
I have a new Altalink C7025 and attempting to set up Secure Printing with use of CAC to release print jobs.
I have set the Secure Print settings on both the MFD and the print driver side settings. See below. The jobs are not being held and an error sheet related to "direct printing" disabled.
I tried with the printer driver versions 3 and 4. Both seem to just send the job through resulting in an error.
Am i missing an addtional setting? Any help is appreciated.