Merchant Initiated Transactions (MIT)
When a merchant triggers a Card-On-File transaction without a cardholder interaction, it is termed as Merchant Initiated Transaction (MIT). These MITs can be used for a one-off payment that don't follow a schedule/frequency but are triggered based on an event, for instance account top up transactions.
You must have performed an initial Card-On-File (COF) transaction with SCA in order to setup a Merchant Initiated Transaction (MIT) agreement. In other words, all MITs should refer to an approved initial COF transaction.
Industry specific Merchant Initiated Transactions
These are follow-on transaction(s) to a previous customer-initiated transaction where an authorization is submitted in the context of specific industry practices. Different types of Industry specific transaction are given below.
Delayed Charges : Transaction used to charge the cardholder after an initial service(s) has already been processed. These charges aren’t known at the time of original transaction hence charged at a later point. For example, an additional mini-bar charge after the cardholder has checked out of a hotel.
No-shows : Commonly used in Hospitality industry to charge the cardholder after reservation is made but the customer does not show up to claim the reservation. In this situation, the cardholder is charged an agreed upon fee for not showing up.
Resubmissions : It is possible to resubmit an authorization to recover an outstanding debt when the original authorization was declined due to insufficient funds but the goods or services were already delivered to the cardholder.
Reauthorization : Some merchant categories are allowed to perform a reauthorization when the delivery/fulfilment of the goods or services extends beyond the initial authorization validity period. The two most common reauthorization scenarios are
Split or delayed shipments due to goods unavailability or involvement of multiple suppliers.
Extended hotel stays, car rentals and cruise line bookings.
Perform UCOF - MIT
To initiate a subsequent Unscheduled card-On-File Merchant Initiated Transaction (UCOF-MIT), you must include cardPaymentData.cardOnFileData object and associated properties in your create payment request.
Property |
Explanation |
---|---|
isInitialTransaction |
Set to " false " to indicate that the transaction is a subsequent transaction referring to an initial Card on File transaction |
subsequentCardOnFileData.cardOnFileInitiator |
Initiator of the subsequent COF transaction, it must be "MERCHANT" |
subsequentCardOnFileData.transactionType |
Indicate the type of the subsequent UCOF_MIT using any of the appropriate values
|
subsequentCardOnFileData.initialSchemeTransactionId |
It is a must to link the subsequent COF transactions to the initial approved COF transaction and for that reason scheme transaction id of an approved initial COF transaction must be provided here. |
Below code snippet shows the cardPaymentData.cardOnFileData object for subsequent UCOF-MIT for authorization resubmission.
{
"cardPaymentData": {
"cardOnFileData": {
"isInitialTransaction": false,
"subsequentCardOnFileData": {
"cardOnFileInitiator": "MERCHANT",
"transactionType": "RESUBMISSION",
"initialSchemeTransactionId": "304232535995347"
}
}
}
}
These transactions are out of scope of SCA as the cardholder is not available to complete an authentication.