Charging again.
WHAT IS REQUIRED
Stored credentials, held by a compliant party A recorded agreement with the cardholder Correct indicators on each transaction
WHY THE INDICATORS MATTER
They tell the issuer this is an agreed recurring charge, which improves approval.
WHAT THE TYPES ARE
Fixed recurring, at intervals Variable recurring, where the amount differs Merchant-initiated, with no cardholder present Unscheduled, charged when a condition occurs
WHAT TO RECORD FOR EVERY AGREEMENT
When it was agreed What was agreed The reference from the first transaction
WHY THAT REFERENCE
Subsequent transactions must link to it.
WHAT CAUSES INVOLUNTARY CHURN
Cards expiring Cards reissued after loss Insufficient funds Issuer declines
WHAT REDUCES IT
Network tokens, updating automatically Account updater services Reminders before renewal Intelligent retry timing An easy route to update details
WHAT TO NEVER DO
Charge without a clear prior agreement Make cancellation difficult
WHY THAT SECOND POINT
It is the leading cause of disputes, and increasingly of regulatory attention.
