Customer Initiated Transaction (CIT)

Customer Initiated Transactions (CIT) refer to transactions where the customer explicitly authorizes the initiation of a payment or fund transfer. In the context of recurring payments, CITs are transactions initiated by the customer to ensure timely, automated payments over a specified period without further manual intervention.

The CIT framework for recurring transactions allows customers to automate payments such as subscriptions, donations, insurance premiums, and utility bills while maintaining control and consent over the payment process.

Key Characteristics

• Customer Authorization

  Each transaction under CIT is authorized directly by the customer, either at the start of the recurring mandate or for each transaction, depending on the regulatory framework.

• Recurring Mandate

  The customer sets up a recurring payment mandate specifying the amount, frequency (e.g., weekly, monthly), and duration of payments.

• Payment Types

  Includes direct debits, standing orders, subscriptions, and installment-based payments.

• Authentication Requirements

  Depending on the jurisdiction and payment scheme, strong customer authentication (SCA) may be required at the time of mandate setup or at regular intervals.