Recurring Transaction (RT) Agreements

Overview

The RT Agreements system is designed to automatically repeat transactions at predetermined intervals for either a fixed number of intervals or indefinitely. You would use a Recurring Transaction (RT) when you want to process additional payments against card details you have already obtained from a previous transaction.

Merchants who use this system to implement billing or subscription type payments are encouraged to use Continuous Authority (CA) transactions to comply with Card Payment Scheme practices. Your Acquirer may refuse to accept the recurring transactions if they are not subject to an agreement between yourself and your customer.

Continuous Authority (CA) Recurring Transactions

• Continuous Authority (CA) Recurring Transactions are used when a Merchant has an agreed fixed or flexible payment schedule with a cardholder. These transactions are most often used for subscription based services, such as fitness memberships or magazine subscriptions, where an initial payment is taken, followed by further regular payments.
• A Continuous Authority arrangement allows the Merchant to process repeat payments on an agreed basis, without needing to obtain authorisation from the cardholder each time, provided that clear consent was obtained at the outset.
• CA Recurring Transactions typically require a specific Acquirer Merchant Account (MID) that is configured by the Acquirer to support recurring payments.

Key Requirements for CA Recurring Transactions

• The Merchant must clearly inform the cardholder of the payment terms, including timing, frequency, and amount, and must obtain explicit agreement for the recurring payments.
• This agreement forms part of the Merchant Policy and is referenced by a Merchant Policy Reference Number (MPRN).
• The first transaction in the recurring sequence must be obtained securely and fully authorised using methods such as Verified by Visa, MasterCard SecureCode, Card Security Code, or Chip and PIN.
• This initial transaction must be processed with a zero floor limit.
• All subsequent transactions must be processed on the designated CA MID and must be sent online for authorisation.
• Transactions must not occur more than 13 months apart.

Additional Guidance

• A subsequent Continuous Authority transaction assumes that a valid agreement is in place. If the cross-reference provided to the initial or previous transaction does not already have credentials on file, those credentials will be treated as being stored for the first time. This can occur when the original transaction pre-dated the introduction of agreement flagging. Such transactions may risk being declined.
• Traditionally, Continuous Authority refers to transactions made at predetermined intervals and amounts (such as magazine subscriptions or instalment payments) and are sent to the Gateway as type ‘9'. However, under the Visa MIT Framework, future unscheduled or ad hoc uses of a cardholder’s credentials, without the cardholder’s direct participation, must also be made under a valid Credentials-on-File (COF) agreement. Visa refers to this wider usage as a Standing Instruction. These unscheduled transactions should be sent to the Gateway as type ‘2', including an rtAgreementType of 'unscheduled'.
• Using a cardholder’s card details without a valid agreement is not permitted and may result in the transaction being declined. If such a transaction is accepted, it could also lead to chargebacks.
• Recurring Transactions are not permitted for Maestro unless you are enrolled in the Maestro Recurring Payment Program.
• Finally, Credentials-on-File (COF) should always refer to stored credentials used under a formal agreement, not merely “Card-on-File” storage. While the Gateway may retain card details temporarily for settlement, refunds, and reporting purposes, this does not constitute a stored credentials agreement.

Last updated October 2025