Definition​
In payment processing, transactions are categorized as either Client Initiated Transactions (CIT) or Merchant Initiated Transactions (MIT).
- CIT (Client Initiated Transaction): A transaction triggered by the customer, where they actively provide their payment details and authenticate the transaction (e.g., entering a card number and confirming with 3D Secure).
- MIT (Merchant Initiated Transaction): A transaction initiated by the merchant, based on a prior agreement with the customer, without direct interaction at the time of payment (e.g., a recurring subscription or delayed charge).
- Key Differences:​
| Feature | CIT (Client-Initiated) | MIT (Merchant-Initiated) |
|---|
| User Interaction | Required | Not required |
| Authentication | Strong authentication Required | Based on prior agreement |
| Use Cases | Online purchases, POS transactions | Subscriptions, delayed charges |