Merchant Initiated Transactions (MIT) is an optional service for you to charge your customer’s card without their activate participation. A transaction is first made with the cardholder actively present, or a cardholder payment agreement is made for future payments. MIT allows you to store a payment credential-on-file and use it for subscriptions, or on-going payments.

Use Cases

Stored credentials can help provide a seamless way for cardholders to transact online, in-app, or in-person with their favorite merchants. A stored credential-on-file can be used in either a cardholder-initiated or merchant-initiated transaction.

• Subscriptions payments: a subsequent ongoing payment for an e-course or service.
• Hotel additional charges or fees: A hotel charge for mini-bar expenses tallied after the guest has checked-out.
• Billing - Subsequent recurring payment that can vary in amount.

Note: The payment credentials temporarily retained to complete a single purchase are not considered as a stored credential-on-file. For one-time order fulfillment, or purchases made at a customers request refer to our Instant Pull Payments.

MIT Payment Flow

The first transaction in most payment workflows begin as a cardholder-initiated transaction (CIT).

Cardholder Initiated Transaction (CIT)

A cardholder-initiated transaction is any transaction where the cardholder actively participates in the transaction. This can be either at a terminal in-store or through a checkout experience online, or with a stored payment credential that the cardholder has previously consented to store with the merchant. This is also referred to as a Consumer or Customer Initiated Transaction.

Note: Purchases of services made at a consumer’s request, such as ordering a ride are considered CITs because the cardholder is actively participating in the transaction.

Merchant Initiated Transaction (MIT)

Any transaction that relates to a previous cardholder-initiated transaction but is conducted without the active participation of the cardholder. As a result, the merchant cannot perform any cardholder validation. In all cases, a merchant-initiated transaction must refer to the cardholder’s original interaction. A transaction where the cardholder is not actively participating in the transaction.

Merchants commonly perform MITs without the active participation of the cardholder to:

• Perform a transaction as a follow-up to a cardholder-initiated transaction (CIT).
• Perform a pre-agreed standing instruction from the cardholder for the provision of goods or services.

Initial CIT

Subsequent MIT

Transparency of Payments

CIT and MIT indicators help increase the transparency and security of the transaction by providing additional information that can be used to monitor the proper use of payment credentials, supporting better informed authorization decisions, and mitigating risk.

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Authenticating and Validating Cards

Card validation, or authentication (e.g. CVV2, 3DS) are performed for CITs.

Default Behavior for TabaPay Tokens

For TabaPay Clients who store TabaPay Tokens, the transactions that are performed using a TabaPay Account ID, will be by default considered as:

• Card on File for all Visa transactions
• Cardholder Initiated Credential on File for all MasterCard transactions

You can test and develop your customized default behavior, email [email protected] to get started.

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Visa vs MasterCard Configurations

Visa Account Funding Transactions (AFTs) are permitted for use as Merchant-initiated transactions/Recurring transactions.

MoneySend payment or funding transactions, gaming payment transactions do not require CIT or MIT indicators.

Potential Benefits

Opportunity for possible improved MIT authorization approval rates

• Enables and accelerates growth of innovative eCommerce experience
• Supports eCommerce token transactions
• Enhanced with TabaPay Account Updater Service

How MIT works

Prerequisites

Clients need to register for a VMID (Visa Merchant ID) that corresponds with each Client ID. To get started and enable MIT email [email protected].

Note: Mastercard does not require registration.

1. Create Transaction

The Create Transaction API will support an MIT object that includes:

1. initiator: CIT-MIT Flag
2. type: MIT indicator
3. id: Purchase Identifier
4. networkID: Original Network ID when CIT-MIT flag is MIT

CIT-MIT Flag:

Indicates to TabaPay whether the TabaPay Client is performing a cardholder-initiated or a merchant-initiated transaction.

• Use C when consumer initiates the transaction
• Use M when the consumer is not present

MIT Indicator

This field contains an indicator for different use cases of recurring payments, utility bills, installments credential on file or standing orders all when the cardholder and merchant have agreed to the cardholders account being charged without their active participation.

For more values for the MIT type or indicator, refer to CIT-MIT Indicators, or the Create Transaction fields under recurringData.

Purchase Identifier

A client generated unique identifier can remain the same for both the initial CIT and subsequent MITs. This helps issuers link transactions and can improve approval rates.

Note: Use the same id from the CIT in all related MITs.

Original Network ID when CIT-MIT flag is MIT

For subsequent MITs, TabaPay Clients must pass the networkID in the Create Transaction from the response of the original first CIT.

2. Original First CIT Response

Notice the "networkID": "407903181027", in the response.

{
    "SC": 200,
    "EC": "0",
    "transactionID": "k5KnKwhgeita2lMToD9BQQ",
    "network": "Visa",
    "networkRC": "00",
    "networkID": "407903181027", //<-------networkID here
    "status": "COMPLETED",
    "approvalCode": "210558",
    "AVS": {
        "codeSecurityCode": "M"
    },
    "card": {
        "last4": "1111",
        "expirationDate": "202708",
        "nameFI": "Whoop I.E. Institution"
    }
}

3. Subsequent MIT Request

The same networkID is included in the subsequent MIT request, "networkID": "407903181027",

...  
"pullOptions": {
        "recurringData": {
            "initiator": "M",
            "type": "S",
            "id": "hqMZ-UEE2YEiYOj6HPxEXQ", //<----- networkID included here
            "networkID": "407903181027
        },
        "rec
    ...

Note: For the full request for Visa or Mastercard MITs, refer to the Recipes section.

MIT Recipes (Code Samples)

MIT FAQs

How do I participate in TabaPay’s MIT service?

Contact [email protected] or reach out to your TabaPay Representative to register for TabaPay MIT. Each network requires registration and we want to make sure you are suitably enabled.

What issuer decline reason codes will prevent the Original record from being stored?

How does this process work with TabaPay Account Updater?

TabaPay Account Updater works independently of TabaPay MIT Service and if a credential is updated, it will be used in the MIT transaction.

How do I use MIT in combination with Apple Pay Merchant tokens?

Apple Pay Merchant tokens MUST provide the MIT-CIT flag as well as the MIT indicator.

When using [Apple Pay Merchant tokens, depending on the value of the CIT-MIT flag, cryptogram may or may not be required:

• If flag is CIT, mobile pay object requires cryptogram
• If flag is MIT, mobile pay object does not require cryptogram. Along with this MIT flag, merchant must include original transaction ID.

In what situations will MIT not be allowed for an initial CIT?

When the network response code is any of these for the initial CIT:

• 04 - Pickup Card (No fraud)
• 07 - Pickup Card, Special Condition (fraud account)
• 14 - Invalid Account Number
• 41 - Lost Card - Pick up
• 43 - Stolen Card - Pick up
• 46 - Closed Account

More Recipes

See more MIT examples with Auth & Capture.