Recurring and Unscheduled payments are types of Merchant-Initiated Transactions (MITs).
They allow a business to charge a customer's stored payment method without the customer manually initiating each transaction. This mechanism provides flexibility and automation for collecting funds on a regular or ad-hoc basis.
Recurring Payments are based on a customer agreement to make regular payments at specified, fixed intervals (e.g., weekly, monthly, or annually).
This payment type uses a stored payment method to automatically charge customers on the pre-arranged schedule. It is typically used for any ongoing service that requires predictable and timely payments.
These payments offer convenience by automating the collection process for both the business and the customer, and they can also be used to direct recurring payments to Sub-Accounts in a marketplace setup.
Unscheduled Payments are charges made at irregular intervals or on an as-needed basis, rather than on a fixed calendar schedule.
Like recurring payments, they use a stored payment method to charge the customer without a manual prompt for a fixed or variable amount.
This type of MIT is commonly used for services that require occasional charges, such as one-off purchases, add-on services, or scenarios with variable billing amounts.