The Ultimate Guide to Merchant Initiated Transactions (MIT): How One-Click Payments Can Boost Your Business

As a merchant, you know that streamlining the payment process is key to keeping customers happy and increasing revenue. That’s where Merchant Initiated Transactions (MIT) come in. In this ultimate guide, we’ll explain what MIT is, how it works, and how it can benefit your business.

What are Merchant Initiated Transactions?

Merchant Initiated Transactions (MIT) are a type of payment transaction in which a merchant initiates a transaction with a customer’s consent, usually through a stored payment method. This process eliminates the need for the customer to manually enter their payment information each time they make a purchase. Instead, the merchant triggers the transaction on their behalf, providing a seamless and convenient checkout experience for customers.

How do Merchant Initiated Transactions Work?

The MIT flow involves two or more transactions: an initial payment and one or more subsequent payments. To successfully set up MIT, the initial card payment request should be a request initiated by the customer (CIT). Once all the details are saved and the transaction is successfully completed, it may be used for a subsequent MIT transaction as the reference one. It means all the card data for every subsequent transaction will be verified from the initial attempt.

This feature is also known as “one-click payments” and is supported by most payment processors only using the Card On File option (Tokenization), which makes payments even more secure, because instead of the card data, the generated token (ID) of the card is transferred.

Zero-Authorization can also be used as a separate option to verify a customer’s card and save it for future use. Or, it can be used as the reference transaction to perform subsequent MITs! 

What are the benefits of Merchant Initiated Transactions?

First and foremost, MIT provides a more convenient checkout experience for customers, leading to increased customer satisfaction and potentially higher conversion rates. It also simplifies the payment process for merchants, eliminating the need for individual integrations with PSPs across the world. This means that merchants can accept payments from pretty much anywhere in the world without the headaches of having to do multiple integrations with each PSP in each country.

Additionally, MIT increases the security of card transactions. When a standard approach to card transactions is used, customers often have to enter a bunch of data manually each time, starting with the CVV code and ending with full card data and 3D verification. Even if they’ve made successful transactions with this card before, they still need to go through this process each time. With MIT, the payment process is simplified, and the security of transactions is increased, providing peace of mind for both merchants and customers.

How can Merchant Initiated Transactions increase revenue, conversion, and retention?

One-click payments make the payment process faster and more convenient for customers, which can lead to increased customer loyalty and repeat business. It also provides a more secure payment experience, which is crucial for online transactions.

Praxis Tech offers MIT as a feature in our payment orchestration software, which has been designed to simplify the payment process for merchants in gaming, forex, crypto, ecommerce, travel, and healthcare. With our platform, merchants can accept payments from pretty much anywhere in the world without the headache of having to do multiple integrations with each PSP in each country.

MIT is a game-changer for merchants looking to simplify their payment process and improve customer experience. By streamlining payments and increasing security, MIT can boost your business exponentially.