Cardholder vs. Merchant Initiated
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.
