{"title":"Merchant-initiated transactions (MIT)","category":"default","creationDate":1779796134,"content":"

SCA is not required for an authorization adjustment or for subsequent payments related to a subscription or contract. However, the initial authorization or the first transaction for the subscription or contract does require SCA<\/a>.<\/p>\n

Requirements<\/h2>\n

Before you begin, take into account the following requirements:<\/p>\n\n\n\n\n\n
Requirement<\/th>\nDescription<\/th>\n<\/tr>\n<\/thead>\n
Integration type<\/strong><\/td>\nAn online payments integration<\/a>.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

MIT<\/h2>\n

Card schemes refer to payments initiated by merchants (instead of directly by shoppers) as merchant-initiated transactions or MIT. Payments made to adjust the initial transaction made by a shopper or subsequent payments in a subscription or contract fall under the scope of MIT.<\/p>\n

To ensure that a transaction can be correctly classified as MIT, subsequent payments or authorization adjustments must be linked to the first payment using a network transaction reference.<\/p>\n

Authorization adjustments<\/h3>\n

The pre-authorization transaction requires SCA, but any transaction made to adjust the amount of the pre-authorized amount or to extend the validity of the initial payment is classified as MIT, exempting it from SCA compliance.<\/p>\n

Adyen automatically sends the additionalData.networkTxReference<\/a> when you adjust the pre-authorized amount or extend the validity of the authorization.<\/p>\n

Subscriptions and contracts with non-fixed time intervals<\/h3>\n

The first payment in a subscription or a contract falls under the SCA because the shopper initiates the transaction. This means that SCA is required on the sign-up for a series of Subscription<\/strong> or UnscheduledCardOnFile<\/strong> payments. All subsequent payments in a subscription or a contract are classified as MIT and do not fall under the scope of SCA compliance.<\/p>\n

How the subsequent payments are linked to the first payment depends on how you tokenize card details.<\/p>\n\n

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\n \n <\/tabs>\n <\/div>\n<\/div>\n\n

Next steps<\/h2>\n
\n

\"A<\/p>

Implement SCA<\/h6>

Your options to implement SCA.<\/p><\/div><\/p><\/a>

\"A<\/p>

Possible SCA exemptions<\/h6>

SCA exemptions that you can request.<\/p><\/div><\/p><\/a><\/div>\n","url":"https:\/\/docs.adyen.com\/online-payments\/psd2-sca-compliance-and-implementation-guide\/business-models\/subsequent-payments","articleFields":{"description":"PSD2 SCA compliance regarding authorization adjustments and payments for subscriptions and contracts.","last_edit_on":"28-01-2021 10:26"},"algolia":{"url":"https:\/\/docs.adyen.com\/online-payments\/psd2-sca-compliance-and-implementation-guide\/business-models\/subsequent-payments","title":"Merchant-initiated transactions (MIT)","content":"SCA is not required for an authorization adjustment or for subsequent payments related to a subscription or contract. However, the initial authorization or the first transaction for the subscription or contract does require SCA.\nRequirements\nBefore you begin, take into account the following requirements:\n\n\n\nRequirement\nDescription\n\n\n\n\nIntegration type\nAn online payments integration.\n\n\n\nMIT\nCard schemes refer to payments initiated by merchants (instead of directly by shoppers) as merchant-initiated transactions or MIT. Payments made to adjust the initial transaction made by a shopper or subsequent payments in a subscription or contract fall under the scope of MIT.\nTo ensure that a transaction can be correctly classified as MIT, subsequent payments or authorization adjustments must be linked to the first payment using a network transaction reference.\nAuthorization adjustments\nThe pre-authorization transaction requires SCA, but any transaction made to adjust the amount of the pre-authorized amount or to extend the validity of the initial payment is classified as MIT, exempting it from SCA compliance.\nAdyen automatically sends the additionalData.networkTxReference when you adjust the pre-authorized amount or extend the validity of the authorization.\nSubscriptions and contracts with non-fixed time intervals\nThe first payment in a subscription or a contract falls under the SCA because the shopper initiates the transaction. This means that SCA is required on the sign-up for a series of Subscription or UnscheduledCardOnFile payments. All subsequent payments in a subscription or a contract are classified as MIT and do not fall under the scope of SCA compliance.\nHow the subsequent payments are linked to the first payment depends on how you tokenize card details.\n\n\n \n \n \n \n\n\nNext steps\n\nImplement SCAYour options to implement SCA.Possible SCA exemptionsSCA exemptions that you can request.\n","type":"page","locale":"en","boost":16,"hierarchy":{"lvl0":"Home","lvl1":"Online payments","lvl2":"PSD2 SCA compliance guide","lvl3":"Business models","lvl4":"Merchant-initiated transactions (MIT)"},"hierarchy_url":{"lvl0":"https:\/\/docs.adyen.com\/","lvl1":"https:\/\/docs.adyen.com\/online-payments","lvl2":"https:\/\/docs.adyen.com\/online-payments\/psd2-sca-compliance-and-implementation-guide","lvl3":"https:\/\/docs.adyen.com\/online-payments\/psd2-sca-compliance-and-implementation-guide\/business-models","lvl4":"\/online-payments\/psd2-sca-compliance-and-implementation-guide\/business-models\/subsequent-payments"},"levels":5,"category":"Online Payments","category_color":"green","tags":["Merchant-initiated","transactions","(MIT)"]}}