Skip to main content
Under card network rules (VISA, MasterCard, etc.) and global payment regulations, card transactions are strictly categorized into CIT (Customer-Initiated Transactions) and MIT (Merchant-Initiated Transactions) based on who triggers the payment and whether the cardholder is present (on-session vs. off-session). Understanding and properly separating CIT and MIT is essential for maximizing authorization approval rates, qualifying for 3DS / SCA exemptions, and minimizing dispute liability.

​
1. What Are CIT and MIT?

An MIT charge cannot be initiated without prior authorization. Card network rules mandate that the cardholder must first complete an Initial CIT (on-session)—explicitly consenting to store their payment credential for future charges and completing any required authentication—before you can initiate Subsequent MIT (off-session) charges with the returned tokenID. A standard one-off CIT payment made without credential tokenization cannot be charged again later as an MIT.

​
2. Initial CIT vs. Subsequent MIT End-to-End Flow

​
3. How CIT and MIT Map to HaiPay Products & APIs

HaiPay provides three distinct API paths covering CIT and MIT scenarios. Choose based on whether your billing schedule is fixed and who schedules the charges:

​
4. MIT API vs. Subscription API: Which Should I Choose?

Both /usd/mit/apply and /subscription/apply use MIT rails for subsequent charges, but they differ in who manages the billing schedule:

Choose MIT Payment (/usd/mit/apply)

  • Unscheduled or variable-amount charges: Usage-based AI tokens, cloud metering, post-service charges, or auto-top-up when balance drops below a threshold.
  • Self-managed billing engine: You already run your own subscription scheduler and want full control over when each charge is triggered.
  • Component setting: Initialize Component Mode with mode: 'payment'.

Choose Subscription (/subscription/apply)

  • Fixed-cycle plans: Standard $19.99/month VIP memberships or annual SaaS plans with a fixed interval and duration (≤ 3 years).
  • Turnkey recurring billing: Let HaiPay automatically trigger each cycle’s deduction, apply promotional coupons (couponPeriod), and handle automatic retries (retryTimes).
  • Component setting: Initialize Component Mode with mode: 'subscription'.

​
5. Compliance & Approval Rate Best Practices

Because MIT and subscription deductions occur when the shopper is offline, unclear terms often lead to chargebacks. Follow these best practices to maintain high approval rates and stay compliant:
  1. Clear Terms at Initial Checkout: Prominently display pricing, billing frequency, auto-renewal terms, and cancellation policies before the shopper authorizes the initial CIT.
  2. Proactive Off-Platform Notifications: Notify shoppers via email or SMS upon initial agreement activation, before upcoming renewals, and after each deduction.
  3. Unobstructed Cancellation Path: Provide a clear, self-service cancellation or unbinding entry inside the user’s account settings.
  4. Consistent partnerUserId: Pass a valid, consistent partnerUserId across the initial CIT and all subsequent MIT requests to help risk models recognize legitimate repeat charges.
Last modified on November 12, 2026