Merchant Initiated Transactions (MITs) are payments initiated by the merchant without the interaction of the payer. They are characterized by a lack of involvement of the payer in triggering each individual payment. Examples of such transactions are the additional hotel costs charged after check-out, car rental fees, or subscriptions with an agreed date of payment with prior consent of the payer. MITs are not within the scope of PSD2 and do not need to follow the Strong Customer Authentication rules implied by it. They also do not have the same reporting requirements. In theory, this means that merchants could send MITs directly to authorization.
Referring to the MIT provided within the Netcetera 3DS Issuer Service, in case the Access Control Server (ACS) receives such a transaction, the ACS forwards it to the Risk-Tool for risk assessment, and depending on the score it will let the transaction pass frictionless or decline it. A challenge can never be implied as no cardholder is present to authenticate. These transactions are reported as MIT exceptions.
MIT transactions should either pass frictionless or shall be declined. MIT transactions should never end in a challenge as the cardholder is not present for authentication. This behavior is guaranteed with the activation of Netcetera’s MIT exception. Having the MIT exception as part of the standard Netcetera 3-D Secure Issuer Service prevents the rare case of a MIT transaction being mistakenly processed with a challenge, but it also helps in increasing the frictionless rate of the 3DS transactions.
In order to guarantee seamless flow of the transactions for both protocol versions and for all our customers, from now on, the MITs become a part of the standard offering in the Netcetera 3DS Issuer Service, like a built-in feature.
Contact our team to get a quotation on your own Netcetera 3DS Issuer Service here.