---
title: PayTo Agreement Types
slug: payto-agreement-types
createdAt: 2024-09-26T22:58:55.294Z
---

Depending on your use case, there are various types of PayTo agreement and various frequencies available. When creating an agreement with the [Create a Payment Agreement](docId\:IsYbAdzfPYzmkyDo-cY8N)  endpoint you'll need to pass a valid agreement type and frequency.

## Frequency

Frequency determines how frequently payments can be initiated against the agreement. 

If creating an agreement for a single payment, Adhoc is suggested. 

| **Code** | **Name**    | **Description**                                            |
| -------- | ----------- | ---------------------------------------------------------- |
| ADHO     | Adhoc       | Event takes place on request or as necessary.              |
| DAIL     | Daily       | Event takes place every day.                               |
| FRTN     | Fortnightly | Event takes place every two weeks.                         |
| INDA     | IntraDay    | Event takes place several times a day.                     |
| MIAN     | SemiAnnual  | Event takes place every six months or two times a year.    |
| MNTH     | Monthly     | Event takes place every month or once a month.             |
| QURT     | Quarterly   | Event takes place every three months or four times a year. |
| WEEK     | Weekly      | Event takes place once a week.                             |
| YEAR     | Annual      | Event takes place every year or once a year.               |

## Agreement Type

The agreement type you'll use is dependent on your use case, and will affect the validation for any payment initiations made against the agreement.

| **Code** | **Name**   | **Description**                                                                                                                                                                     |
| -------- | ---------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| FIXE     | Fixed      | Payment amount is fixed.                                                                                                                                                            |
| USGB     | UsageBased | Payment amount is based on usage. Examples include phone and electricity billing.                                                                                                   |
| VARI     | Variable   | Payment amount is variable. Variable agreements can be used for use cases where there is a need to increase or decrease the amount paid without requiring changes to the agreement. |

## Amount and Maximum Amount

PayTo agreements can contain two amount fields; `amount` and `maximumAmount`.

Amount is a fixed amount field; if you provide only the `amount` field in a payment agreement, you can only debit that amount.

If you specify only the `maximumAmount` field, you can debit any amount between $0.01 and the set maximum.

If both `amount` **and **`maximumAmount` fields are included, you can debit any amount not less than the `amount` and not greater than the `maximumAmount`.

## Agreement Type + Amount

The Create Agreement endpoint validates amount and maxAmount differently, depending on the agreement type used.

For variable or usage based agreements, it is recommended to populate the maxAmount where practical.

| **agreementType** | **amount**          | **maximumAmount**   | **Rules**                                                                                                                                                            |
| ----------------- | ------------------- | ------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| FIXE              | Valid numeric value | N/A                 | If Fixed, only amount should have values. maxAmount should not be present                                                                                            |
| USGB              | Valid numeric value | Valid numeric value | If Usage based, maxAmount is recommended. However, amount and maxAmount are optional. If both amount and maxAmount are present, amount should be less than maxAmount |
| VARI              | Valid numeric value | Valid numeric value | If Variable, maxAmount is recommended. However, amount and maxAmount are optional. If both amount and maxAmount are present, amount should be less than maxAmount    |

## Agreement Purpose

The agreement type identifies the purpose of the payment and is dependent on your use case. 

| **Code** | **Description**            |
| -------- | -------------------------- |
| MORT     | Mortgage Payments          |
| UTIL     | Utility Payments           |
| LOAN     | Loan Payments              |
| DEPD     | Dependant Support Payments |
| GAMP     | Gambling Payments          |
| RETL     | Retail Payments            |
| SALA     | Salary Payments            |
| PERS     | Personal Payment           |
| GOVT     | Government Payments        |
| PENS     | Pension Payments           |
| TAXS     | Tax Payments               |
| OTHR     | Other Service Payments     |