Customer-initiated transaction

Customer-initiated transaction (CIT) refers to a financial transaction initiated by the account holder or customer, typically through electronic channels such as online banking, mobile applications, or interactive voice response systems.

In CIT scenarios, customers take an active role in authorizing and executing transactions, including fund transfers, bill payments, and account inquiries. This contrasts with transactions initiated by merchants or service providers on behalf of the customer.

CITs require customer authentication, often involving secure login credentials, multi-factor authentication, or biometric verification, to ensure the security and legitimacy of the transaction. Understanding and distinguishing customer-initiated transactions are crucial for financial institutions, ensuring compliance with security standards, prevention, and providing customers with the autonomy and convenience to manage their financial activities independently.