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.
The system handles both Card On File Recurring Transactions (COF RT) and Continuous Authority Recurring Transactions (CA RT).
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.
Card On File Recurring Transactions (COF RT)
Card On File Recurring Transactions are handled in exactly the same way as if the Merchant manually made the subsequent transactions using, for example, the Rerun facility on the Merchant Management System (MMS) Virtual Terminal (VT)
They are processed on a standard Acquirer Merchant Account (MID) and do not need a fixed payment agreement to be setup between the Customer and the Merchant.
Their usage is discouraged but they provide a stop-gap solution.
Continuous Authority Recurring Transactions(CA RT)
Continuous Authority Recurring Transactions are used when the Merchant agreed a fixed payment schedule with a Customer. A typical example would be taking payments for a subscription-based product when you have processed an initial payment and you want to take further regular payments: i.e. a fitness club membership or a magazine subscription.
They often require a special Acquirer Merchant Account (MID) which is configured by the Acquirer to allow CA transactions.
Their usage is encouraged when any form of automated RT is used. To process a CA RT:
- You must specify to the cardholder the details of the payments (timings and amounts) and gain the cardholder’s agreement to process RT payments. This agreement is referred to as the Merchant Policy and is referenced by the Merchant Policy Reference Number (MPRN)
- The second and all subsequent transactions on a card must be undertaken on a designated merchant number (MID) and must go online for an authorisation. RTs must be no more than 13 months apart.
- The initial transaction (only) of the recurring sequence of transactions must be obtained securely using, as appropriate, Verified by Visa, MasterCard SecureCode, Card Security Code or Chip and PIN, and must be authorised using a zero floor limit.
Note: Recurring Transactions are not permitted for Maestro unless you have been accepted for the Maestro Recurring Payment Program.