These values are present in the transaction_initiator_code field of the Auth API v2 and v3 to indicate cardholder-initiated transaction (CIT) or merchant-initiated transaction (MIT).
A CIT is any transaction where the cardholder is actively participating in the transaction. CITs may be performed based on credentials provided by the cardholder at the time of transaction or stored credentials-on-file from a previous interaction. CITs can occur as in-store point-of-sale transactions, e-commerce transactions, mail-order/telephone order transactions or at an ATM.
An MIT is any transaction where the cardholder is not actively participating in the transaction. MITs may often be preceded by either a CIT or an AVS request, and include recurring payments such as standing orders, subscriptions, installments or unscheduled credential-on-file transactions. MITs may also be industry-practice transactions such as partial shipments, related or delayed charges, no-shows or resubmissions.
In general, where there is a series of transactions, the first transaction is CIT and subsequent transactions are MIT.
The first character of the code indicates which party initiated the transaction:
C— CardholderM— Merchant
| Code | Description |
|---|---|
C101 | Credentials on file (ad-hoc). The cardholder agrees to store the credentials on file with the merchant for future cardholder-initiated purchases that may occur from time to time. |
C102 | Standing order. Cardholder agrees to store the credentials on file and initiates a first transaction in a series intended to be for a variable amount and a fixed frequency. |
C103 | Subscription. Cardholder agrees to store the credentials on file and initiates a first transaction in a series intended to be for a fixed amount and a fixed frequency. |
C104 | Installment. Cardholder agrees to store the credential-on-file to establish an installment plan and initiates a first transaction in a series. The installment plan should reflect the single purchase of goods/services with a known amount and set frequency over a specified duration. |
M101 | Unscheduled credential on file. A transaction made pursuant to an agreement between a cardholder and a merchant, whereby the cardholder authorizes the merchant to store and use the cardholder’s account data to initiate one or more future transactions. The transaction can be for a fixed or variable amount but does not occur at regular intervals on a scheduled date. For example, the cardholder agrees to allow a tollway merchant to initiate transactions when the balance in the consumer account with the merchant falls below an established amount (auto top-up). |
M102 | Standing order. A transaction made pursuant to an agreement between a cardholder and a merchant, whereby the cardholder authorizes the merchant to store and use the cardholder’s account data for a transaction that must occur at regularly scheduled intervals for a variable amount, as specified in the agreement, such as with utility payments. |
M103 | Subscription. A transaction made pursuant to an agreement between a cardholder and a merchant, whereby the cardholder authorizes the merchant to store and use the cardholder’s account data for a transaction that must occur at regularly scheduled intervals for a fixed amount, as specified in the agreement. The subscription agreement may include an allowance for introductory pricing or for price changes to occur from time to time. |
M104 | Installment. A transaction in a series of transactions made pursuant to an agreement between a cardholder and a merchant, whereby the cardholder authorizes the merchant to store the cardholder’s account data for use by the merchant to initiate one or more future transactions for a known amount over a specified duration based on a single purchase. |
M205 | Partial shipment. An agreed quantity of goods ordered through e-commerce are not all available for shipment at the time of purchase. Each shipment is a separate transaction. |
M206 | Related or delayed charge. An additional account charge after initial services have been rendered and payment has been processed, such as a hotel mini bar charge after the cardholder has checked out of the hotel. |
M207 | No-show charge. A penalty charged according to the merchant’s cancellation policy, such as a cardholder’s cancellation of a reservation without providing proper advance notice to the merchant. |
M208 | Resubmission. A previous attempt to obtain authorization for a transaction was declined but the issuer’s response did not prohibit the merchant from trying again later, such as an insufficient funds/over-credit-limit response or transit debt recovery. |
Content based on the Mastercard document AN 5524 Cardholder-Initiated Transaction and Merchant-Initiated Transaction Indicators.