Merchant-Initiated Transactions

Merchants can initiate a payment on the behalf of a customer. This type of transaction is called a merchant-initiated transaction (MIT). When initiating a MIT, the customer is not present. However, customers must authorize the storage of their credentials and the use of these credentials for future payments.
There are two types of MITs:
  • Industry Practice transactions
    : Follow-on transactions to a customer-initiated transaction.
  • Standing Instruction transactions
    : Agreed upon standing instructions from the customer for the provision of goods or services. For example, a subscription to an internet music service may involve an agreed upon standing instruction allowing the merchant to bill a customer monthly for their subscription.
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