Recurring transaction

A merchant-initiated transaction charged on a fixed schedule against a stored card credential. Must be properly disclosed at the initial cardholder consent and flagged with the recurring transaction indicator per scheme rules. The most common driver of cancelled-recurring chargebacks (Visa 13.2, Mastercard 4841).

In practice.

Recurring transactions run on stored credentials under a disclosed agreement, flagged as MIT after a properly authenticated first payment. The schemes care about disclosure and easy cancellation, and so do acquirers underwriting subscription files. Clean recurring mechanics plus account updater coverage is the standard setup.

Related terms: MIT · Card-on-File · Continuity billing · Account Updater