Recurring Transactions - Tokenization

Question 1

Recurring Definition

Answer 1

A recurring transaction is where a cardholder gives their card details to a merchant and authorizes them to take subsequent regular payments.

Question 2

Recurring transactions are also known as…

Answer 2

Continuous Payment Authority (CPA) transactions.

• This is because the merchant is allowed to store the card details, excluding the CVV2 after the first transaction has ben authorized, and subsequently take payments without the cardholder’s involvement

Question 3

What is a Card on File transaction?

Answer 3

“A card on file transaction is where a cardholder consents to a merchant storing their card details for future use”

Hospitality
This is when a hotel takes the cardholder’s details at check-in time and enables them to use a fast check-out service, where any incidentals will be charged to the card by the hotel without the cardholder’s intervention

• Modern businesses such as food delivery apps and ride hailing and bike sharing schemes also make use of card on file transactions, which renders checkout more streamlined
• BNPL providers also make use of this facility to enable them to take split payments at regular intervals

Question 4

What is a MIT

Answer 4

Merchant Initiated Transaction