Glossary

Recurring Transaction

 A charge applied to a Customer in predetermined intervals for services or goods of an ongoing nature such as subscriptions, annual fees. Mostly it is done by means of charges to the Payment Card.

How does Recurring Transaction work?

In Recurring Transaction a Customer will purchase either good or service for which it will be paying periodically. It can be subscription based, in which case debiting will be made periodically until the Customer cancels the subscription (e.g. telephone operator, internet, gym, newspaper etc.). As well, it can be a repayment of one lump sum divided into smaller amounts, which should be settled over a certain period of time (e.g. car, house, plane etc.). For Recurring Transaction to happen Customer must authorise the Merchant to withdraw money from his account, it can be done by making first payment manually or informing the Issuer regarding such upcoming debits.

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