MIT

A transaction initiated by the merchant against a stored card credential, with no cardholder action at the time of charge. Standard for subscriptions, recurring billing, no-show fees, and incremental authorizations. Must be flagged with specific transaction-type indicators per scheme.

In practice.

MIT flags tell the issuer a charge was initiated by the merchant under a stored agreement, which is what exempts renewals from SCA in Europe. The flag must chain back to a properly flagged initial customer transaction. Subscription merchants who get MIT framing right see fewer renewal declines immediately.

Related terms: CIT · Card-on-File · Recurring transaction