Recurring Payments

What are recurring payments

Payments using stored card data (recurring payments) are a billing model in which the customer gives the merchant permission to automatically charge funds from their card for future orders. Funds are charged from the card linked to the customer’s account on the merchant’s website or mobile app.

Processing core payments

The Tranza system processes two main types of payments based on stored card data:

1. Regular payments (subscriptions) — charges for a fixed amount at a set interval.

Example: automatic monthly membership fee payment.

2. On-demand payments — charges initiated by the merchant or the customer for the order amount at the time of purchase or service delivery.

Example: paying for a taxi ride via a mobile app.

Regular payments and subscription management

If your business involves periodic payments, you can use the Tranza subscription service. Service capabilities include:

• creating plans for regular payments via API;
• configuring plans in the Tranza dashboard;
• automatic charging of the customer’s card at a specified interval or until the customer cancels the subscription.

For cases where subscriptions must be managed on your side, implementation through the mechanism of irregular on-demand payments is appropriate.

How stored-card payments work

Any billing model using stored card data includes the following steps:

• The customer enters their card details during registration or during the initial (initiating recurring) payment and authorizes the merchant to use them to pay for future orders.
• Tranza processes the initial payment and issues the merchant a token — an identifier for the customer’s card data.
• The merchant links the card token to the customer’s account and sends it to the Tranza system in a request for a recurring payment to pay for subsequent orders.
• The merchant links the card token to the customer’s account and sends it to the Tranza system in a request for a recurring payment to pay for subsequent orders.