Cardholder vs. Merchant Initiated

Kelly Cullum Updated by Kelly Cullum

Here's an explainer on cardholder initiated (CIT) and merchant initiated (MIT).  There is no impact on interchange.  It's an indicator to Visa/MC to know which set of transaction rules needs to be followed.

Cardholder initiated A Cardholder Initiated Transaction (CIT) is where the cardholder actively selects the card to use, and completes the transaction using previously stored details. Cardholder Initiated Transactions are limited to sale, pre-authorization, and account verifications.

Merchant initiated. A Merchant Initiated Transaction (MIT) is where you submit a transaction using previously stored detail without the cardholder's participation.

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