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Recurring transactions can be viewed as multiple transactions processed at predetermined intervals, representing an agreement between your customer and yourself to purchase goods or services provided over a period of time.

Key components

  • The consumer establishes a relationship with your company to receive ongoing services or goods until the contractual arrangement is cancelled.
  • The consumer gives you permission to debit his/her account on a recurring basis.
  • Transaction amount may be a fixed amount or may vary with each billing.
  • Future payments occurring on a regular cycle are not to exceed twelve months.

The GlobalCollect platform supports recurring transactions on various payment methods, including:

  • Credit Cards
  • Direct Debits
  • eWallets (limited to PayPal)

Additional Information

Credit Cards

For Credit Cards recurring transactions are defined under the Stored Credential Transaction Framework. In this frame work there are 2 types of transactions: 

  • Merchant Initiated Transactions
  • Customer Initiated Transactions

Please note that there are also transaction types that are not part of the Stored Credential Transaction Framework. A transaction is consider not to be part of this framework when: 

  • Credentials received by merchants from third parties including pass-through digital wallets
  • The merchant or its agent stores the credential to complete a single purchase (e.g. when the cardholder provides the credentials to the hotel to cover charges for a specific reservation).

Merchant Initiated Transactions

A Merchant Initiated Transaction covers any transaction that relates to a previous cardholder-initiated transaction but is conducted without the active participation of the cardholder. During a Merchant Initiated Transaction the cardholder authentication is never performed. In order to process a Merchant Initiated transaction you must have proof of a preceding online authorization message. 

Below chart provides an overview of the type of transactions that are part of this definition: 

UCoF Overview MIT

Customer Initiated Transactions

Customer Initiated Transactions are transaction where the cardholder actively participates in the transaction at the moment of authorization. This includes standard in-store or online checkout transactions, or transactions with a stored payment credential that the cardholder has previously consented to store with the merchant. In case of a Customer Initiated Transaction the cardholder authentication should always be performed. A Customer Initiated Transaction may be followed by subsequent transactions initiated by the Merchant the consumer has given approval to the merchant upfront. 

Below chart provides an overview of the type of transactions that are part of this definition: 

UCoF Overview CIT

Direct Debits

If you process recurring transactions on a direct debit you must ensure that the mandate explicitly states that approval will be granted to debit the bank account on a recurring basis. For more information please refer to the Direct Debit section.

eWallets - PayPal

In order to process recurring PayPal transactions you need to be set-up for PayPal Reference Transactions. Reference Transactions allow you to collect recurring payments through PayPal for varying amounts of money on a varying schedule. The buyer can sign up for recurring payments as part of the Express Checkout flow. When you implement recurring payments using Reference Transactions, you control the amount of the transaction and when the transaction is initiated.

For more information please refer to the PayPal section.