Credential on File Transactions

Credential on file transactions occur when a cardholder gives express permission to the merchant to store their payment credentials for use on a future purchase.

The COF transaction category introduces two transaction types:

  • Scheduled COF
  • Unscheduled COF

These types of transactions also update card brand rules, including merchant disclosure requirements.

The stored credential transaction category covers all COF transactions, including:

  • Cardholder-initiated stored credential transactions - no fixed schedule

  • Industry Specific (delayed, no-show, incremental)

Lodging credential on file transactions are indicated by Fields 0723, 0738, 0305, 0047, position 5, and 0054.

Scenarios Establishing a Credential on File

  1. Cardholder and Merchant agree to establish a Credential on File at a hotel and perform the initial authorization transaction. The COF may be used for future transactions initiated by the cardholder or merchant for payment of lodging stays or hotel services.

Example

Cardholder checks into a hotel and agrees to place their card on file with the merchant for future transactions.

Transaction Type Field 0723
F = First Payment to Establish Credential on file
Field 0738 Field 0305 Field 0047
position 5
Field 0054 Initiated
by
Reason
COF Used
Auth Only (01) - Check In F Not Present 1 0 As Entered Cardholder Unscheduled
  1. Cardholder and Merchant agree to establish a Credential on File while making a reservation and perform the initial sale transaction. The COF may be used for future transactions initiated by the cardholder or merchant for payment of lodging stays or hotel services.

Example

Cardholder makes an advanced deposit, express service arrangement or assured reservation for a hotel stay and agrees to place their card on file with the merchant for future transactions.

Transaction Type Field 0723
F = First Payment to Establish Credential on file
Field 0738 Field 0305 Field 0047 position 5 Field 0054 Initiated by Reason COF Used
Sale (02) - Advanced Deposit F Not Present 3 4 As Entered Cardholder Unscheduled
Sale (02) - Express Service F Not Present 5 4 As Entered Cardholder Unscheduled
Sale (02) - Assured Reservation F Not Present 6 4 As Entered Cardholder Unscheduled
Zero-dollar Auth Only (01) F Not Present 1 4 As Entered Cardholder Unscheduled

Scenarios Using a Credential on File

Check In

Cardholder or Merchant initiates a check in using the established COF.

Example

Guest arrives at the hotel and agrees to use their COF to check into the hotel.

Transaction Type Field 0723
S = Subsequent Payment
U = Unscheduled Payment
Field 0738 Field 0305 Field 0047 position 5 Field 0054 Initiated by Reason COF Used
Auth Only (01) - Check In S Value from Original Transaction Response 1 4 01 Merchant Unscheduled
Auth Only (01) - Check In U Value from Original Transaction Response 1 4 01 Cardholder Unscheduled

Advanced Deposit, Express Service, Assured Reservation

Cardholder or Merchant initiates a transaction for an advanced deposit, express service arrangement or assured reservation using the established COF

Example

Cardholder makes an advanced deposit, express service arrangement or assured reservation for a hotel stay using their established COF.

Merchant requires a payment for an advanced deposit, express service arrangement or assured reservation, a transaction is performed using the cardholder’s COF.

Transaction Type Field 0723
S = Subsequent Payment
U = Unscheduled Payment
Field 0738 Field 0305 Field 0047 position 5 Field 0054 Initiated by Reason COF Used
Sale (02) - Adv Deposit S Value from Original Transaction Response 3 4 01 Merchant Unscheduled
Sale (02) - Adv Deposit U Value from Original Transaction Response 3 4 01 Cardholder Unscheduled
Sale (02) - Express Service S Value from Original Transaction Response 5 4 01 Merchant Unscheduled
Sale (02) - Express Service U Value from Original Transaction Response 5 4 01 Cardholder Unscheduled
Sale (02) - Assured Reservation S Value from Original Transaction Response 6 4 01 Merchant Unscheduled
Sale (02) - Assured Reservation U Value from Original Transaction Response 6 4 01 Cardholder Unscheduled

Sale (02) - No Show

Merchant initiates a transaction for a No Show charge.

Example

The card holder did not appear for their hotel reservation, and the merchant performs a transaction using the established COF.

Transaction Type Field 0723
S = Subsequent Payment
Field 0738 Field 0305 Field 0047 >br>position 5 Field 0054 Initiated
by
Reason
COF Used
Sale (02) - No Show S Value from Original Transaction Response 2 4 01 Merchant Unscheduled

Sale (02) - Delayed Charge

Merchant initiates a transaction for a Delayed charge.

Example

The cardholder owes an amount after check out for additional charges, the merchant performs a transaction using the COF.

Transaction Type Field 0723
S = Subsequent Payment
Field 0738 Field 0305 Field 0047
position 5
Field 0054 Initiated
by
Reason
COF Used
Sale (02) - Delayed Charge S Value from Original Transaction Response 4 4 01 Merchant Unscheduled

Incremental Auth (75)

Merchant initiates an incremental Authorization.

Example

Merchant requires an additional authorization amount for the lodging stay or incidental charges, an incremental authorization is performed using the COF.

Transaction Type Field 0723
S = Subsequent Payment
Field
0738
Field
0305
Field 0047
position 5
Field 0054 Initiated
by
Reason
COF Used
Incremental Auth (75) S Value from Original Transaction Response 1 4 01 Merchant Unscheduled

Return (09)

Cardholder or Merchant initiates a Return Transaction using the established COF.

Example

Cardholder cancels portion of a lodging stay and an amount is to be refunded.

Merchant has overcharged for a previous lodging stay and needs to refund the cardholder.

Transaction
Type
Field 0723
S=Subsequent Payment
U=Unscheduled Payment
Field 0738 Field 0305 Field 0047
position 5
Field 0054 Initiated
by
Reason
COF Used
Return (09) S Value from Original Transaction Response 1 4 01 Merchant Unscheduled
Return (09) U Value from Original Transaction Response 1 4 01 Cardholder Unscheduled

Prior Authorization

Merchant initiates a Prior Authorization to complete a previous COF authorization only transaction.

Example

Merchant needs to submit a prior authorization for a COF transaction as part of their End of Day process and initiate settlement.

Transaction
Type
Field 0723
F=First payment to Establish Credential on File
S = Subsequent Payment
U = Unscheduled Payment
Field 0738 Field 0047 position 5 Field 0054 Initiated by Reason COF
Used
Prior Authorization (07) Same as initial Authorization Only (01) Value from Original Transaction Response Same as initial Authorization Only (01) 01 Merchant Same as initial Authorization Only (01)

Voids and Reversals

Merchant initiates a Reversal or Void of a previous COF transaction.

Example

Merchant needs to cancel a previous transaction, a void or full reversal is performed.

Merchant has over-charged on previous authorization transaction, a partial reversal is performed.

Transaction Type Field 0723
S = Subsequent Payment
Field 0738 Field 0305 Field 0047
position 5
Field 0054 Initiated
by
Reason
COF Used
Full Reversal (61),
Partial Reversal (76) Void Sale (11), Void Return (17)
Same as original Value from Original Transaction Response Same as original 4 01 Same as original Same as original
error_outline

note

While Credential on File integrations are not third party processor specific, if a merchant changes third party processor with already established Credentials on File, it is advised that the merchant re-establish those Credentials on File with the new third party processor. 

POS Data Code - FIELD 0047 POSITION 5 – Cardholder Presence

Cardholder Present Value

  • 0 = Cardholder present

Cardholder Not Present Values

Value Description
1 Cardholder not present (reason not specified)
2 Cardholder not present, mail order
3 Cardholder not present, telephone order
4 Cardholder not present, Industry Practice
5 Cardholder not present, e-Commerce
A Cardholder not present, Standing Authorization - Unscheduled
9 Cardholder not present, Standing Authorization – Recurring or Installment

POS Entry Mode - Field 0054

Value Description
01 Manual/Key Entry
05 EMV
07 Contactless Chip Card
80 EMV fall back to swipe
90 Magnetic Stripe
91 Contactless Mag Stripe

Compliance Data Value - Field 0738

  • This field contains the compliance data required to process Credential on File transactions. The value is returned in the API response of the transaction that established the COF. This value must be retained by the merchant POS.

  • The stored value must be provided on in the API request by the POS on all transactions using the COF.

When Establishing a COF

  • API Request – Not Present

  • API Response – Compliance Data Value - Merchant POS must retain for all transactions using a COF

When Using a COF

  • API Request

    Compliance Data Value retained from field 0738 of the Original Authorization Transaction Response when the COF was Established.

  • API Response

    • Compliance Data Value is possibly a different value from the request.

    • Merchant does not need to store this value.

error_outline

note

When attempting to establish a COF, if a value is not returned in field 0738, the COF response was not established. The merchant must treat this and any future transactions for this card as non COF transactions. In this case, do not send 0723 and 0738 on those future transactions.