---
title: "Recurring and merchant-initiated transactions"
slug: "cards-recurring-and-merchant-initiated-transactions"
description: "Cards recurring and merchant initiated transactions"
tags: ["Recurring", "Subscription"]
updated: 2026-03-11T01:45:46Z
published: 2026-03-11T01:45:46Z
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.xendit.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Recurring and merchant-initiated transactions

Xendit offers two types of recurring integration models:

- The [subscription product](/docs/how-subscriptions-work) (we take care of charging payments at a set interval, for a certain amount).
- Or, supporting you to manage your own subscriptions using our Payments API, which is explained below.

## Store a card for a subscription

**Scenario:**Your customer signs up for a monthly subscription service, you control charging the subscription to the shoppers card.

### Flow

1. Allow customers to sign up and select a subscription plan.
2. [Tokenize and securely store the customer's card details](/v1/docs/pay-and-save-2).
3. Charge the customer automatically based on the billing cycle. Follow this [integration guide](/docs/pay-with-tokens) to request payment with existing payment token.
4. Provide options for customers to update their card or cancel the subscription.

## Benefits of tokenization

- Enhanced Security: Sensitive card data is not stored on the merchant's servers, reducing the risk of data breaches.
- Improved Customer Experience: Customers don't need to re-enter their card details for each payment.
- Reduced Payment Failures: Tokenization helps minimize payment failures due to expired or updated card information.

Tokenization is a critical component of subscription-based businesses, enabling seamless and secure recurring payments.

To charge and store a card for subscription transactions set the `card_on_file_type` to `RECURRING`. Additionally, add the `recurring_configuration` object inside the [payment request payload to charge using the existing payment token](/v1/docs/pay-with-tokens). This object contains two fields:

- `recurring_frequency:` Recurring frequency indicates the days between charges to the shopper. For example; when charging the shopper every 4 weeks, set this value to `28`
- `recurring_expiry:` Recurring expiry indicates when the subscription is going to end. For example; when the subscription ends at the end of 2028, set this to `2028`.

```json
{
    "reference_id": "video-streaming-subscriptions",
    "type": "PAY",
    "payment_token_id":"pt-263fe30e-88f3-4d78-b8d5-22743e7392d4",
    "country": "ID",
    "currency": "IDR",
    "request_amount": 5000,
    "channel_properties": {
       "card_on_file_type":"RECURRING",
       "recurring_configuration": {
          "recurring_expiry": "2026-12-12",
          "recurring_frequency": 1
       }  
    }
}
```

## Merchant-Initiated Transactions (Unscheduled Card on File)

**Scenario:**Your customer authorizes a merchant to store their card details for future purchases, but without a predetermined schedule.

#### Flow

1. The customer consents to store their card information securely.
2. [Tokenize the card data for future use.](/v1/docs/cards-save-a-card)
3. You can charge the customer's card on an as-needed basis (e.g., for replenishing a prepaid account or fulfilling an order). Follow this [integration guide](/v1/docs/pay-with-tokens) to request payment with existing payment token.
4. It is important for you to clearly communicate any charges to the customer.

#### Use Cases

- On-Demand Services: Customers who use services sporadically (e.g., taxi rides, food delivery).
- Account Top-Ups: Customers who add funds to their accounts as needed (e.g., gaming accounts, e-wallets).
- Recurring Expenses with Variable Amounts: Utility bills or subscriptions with usage-based pricing.

Unscheduled card-on-file transactions provide flexibility for both you and customers while maintaining the convenience and security of tokenization.

### Store a card for merchant-initiated transactions

To charge and store a card for subscription transactions set the `card_on_file_type` to `MERCHANT_UNSCHEDULED` inside the [payment request payload to charge using the existing payment token](/v1/docs/pay-with-tokens). Example payload:

```json
{
    "reference_id": "video-streaming-subscriptions",
    "type": "PAY",
    "payment_token_id":"pt-263fe30e-88f3-4d78-b8d5-22743e7392d4",
    "country": "ID",
    "currency": "IDR",
    "request_amount": 5000,
    "channel_properties": {
       "card_on_file_type":"MERCHANT_UNSCHEDULED",
       "recurring_configuration": {
          "recurring_expiry": "2026-12-12",
          "recurring_frequency": 1
       }  
    }
}
```

## Related

- [How subscriptions work](/how-subscriptions-work.md)
- [Available integrations](/available-integrations.md)