Introduction to Credentialed Transactions
Credentialed transactions are transactions that involve either storing a customer's
payment credentials for future transactions or using a customer's already stored payment
credentials. When processing a credentialed transaction, you must indicate the type of
credentialed transaction and the reason for the transaction. Credentialed transactions
are also known as
credential-on-file
(COF) transactions.There are several types of credentialed transactions:
- Customer-Initiated Transactions (CITs):Any transaction a customer is actively participating in such as making a card-present payment, completing an online checkout, or by using a stored credential. CIT transactions can store of the customer's credentials in your system for future CITs or merchant-initiated transactions.
- Merchant-Initiated Transactions (MITs):Any transaction a merchant initiates without the customer's participation such as an industry practice transaction or a standing instruction transaction.
- Industry Practice Transactions:MITs that are performed as subsequent transactions to a CIT because the initial transaction could not be completed in one transaction. Not every industry practice transaction involves a stored credential. If a stored credential is used only for one transaction, that transaction is not considered a credentialed transaction.
- Standing Instruction Transactions:MITs that are performed to follow agreed-upon instructions from the customer for the provision of goods and services.
Figure:
MIT Types
Supported Services
These are the supported merchant-initiated services:
- Delayed Authorization
- Incremental Transactions
- Installment Transactions
- Mastercard Standing Order Transactions
- Mastercard Subscription Transactions
- No-Show Transactions
- Reauthorization
- Recurring Transactions
- Resubmission
- Unscheduled Credentials-on-File Transactions
The service determines the reason for the credentialed transaction.