Agreements

(Previously called "Subscriptions")

What is an agreement?

An agreement in an arrangement between merchant and the cardholder, in order to store the credentials to process future purchases.

To ensure cardholder details are stored and used responsibly, the schemes have introduced a set of definitions and rules for storing the credentials known also as credential on file.

We’ve made it easy for the merchants to comply with these scheme rules, so that you can use the Agreements to save card details to reuse later while being compliant.

What kind of agreements can be created?

There are three different types of agreements that can be established between merchant and customers:

1. Recurring

   Allows the merchant to charge the customer with a specific frequency and in most cases with a specific amount, in exchange for fixed goods or services.

2. Instalment

   Allows the merchant to charge the customer for goods or services billed to a cardholder in multiple transactions, over a period of time agreed with the cardholder.

3. Unscheduled

   Allows the merchant to charge the customer for goods or services that do not follow a specific frequency, neither have a fixed amount to be paid out.

What is defined as credential on file?

There are two types of credential on file transactions:

1. CIT - Cardholder Initiated Transaction

   • Any transaction in which the cardholder is actively participating, and as such is part of the payment flow.

   • For example, a customer is buying a good or a service from an online shop being presented with their saved card at checkout time. It is a better experience than having to re-enter card details.

   • For the CIT transactions the Strong Customer Authentication takes place.

2. MIT - Merchant Initiated Transaction

   • Any transaction initiated by the merchant in which the cardholder is not part of the payment flow.

   • For example, a customer that have a gym membership for which the merchant obtained the agreement to debit their card monthly.

   • For the MIT transactions the cardholder authentication is NOT required.

How can the merchants start using the Agreements?

The creation and using of the agreements on the Altapay platform consists of two steps:

1. Setup the Agreement

   The purpose of this step is to create the agreement. It will check if the cardholder details are valid and, it will ensure that the cardholder details are stored securely.

   This step should be done only once for every agreement with a customer.

   A merchant can have multiple agreements with a customer for different goods or services.

2. Charge the Agreement

   In this step the customer will be debited for the specified agreement.

   This step can be done as many times as needed for an agreement with a customer.