Restaurant 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 2 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).

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. 

Restaurant COF and Related Transaction Scenarios

Restaurant credential file transactions are indicated by Fields 0723, 0738, 0047 - position 5, and 0054.

Establishing a Credential on File

Scenario

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

Example

Cardholder purchases a meal at a restaurant and agrees to place their card on file with the merchant for future take out or delivery meals.

Transaction
Type
0723
F=First Payment to Establish Credential on file
Field 07380047 Position 50054Initiated ByReason
COF Established
Sale (02)FNot PresentAppropriate ValueAs EnteredCardholderUnscheduled
Auth Only (01)FNot PresentAppropriate ValueAs EnteredCardholderUnscheduled
Zero-dollar Auth Only (01)FNot PresentAppropriate ValueAs EnteredCardholderUnscheduled

Scenarios Using a Credential on File

Scenario

Merchant initiates a payment for a meal or service using the established COF based on a standing arrangement with the Cardholder.

Example

Merchant performs a transaction for a weekly food delivery to the cardholder.

Transaction
Type
0723
S=Subsequent Payment
Field 07380047 Position 50054Initiated ByReason
COF Used
Sale (02)SValue from Original Transaction ResponseA01MerchantUnscheduled
Auth Only (01)SValue from Original Transaction ResponseA01MerchantUnscheduled

Scenario

Cardholder initiates a single purchase using the established COF

Example

Cardholder purchases a meal for delivery from the restaurant

Transaction
Type
0723
U=Unscheduled Payment
Field 07380047 Position 50054Initiated ByReason
COF Used
Sale (02)UValue from Original Transaction ResponseA01CardholderUnscheduled
Auth Only (01)UValue from Original Transaction ResponseA01CardholderUnscheduled

Scenario

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

Example

  • Cardholder cancels an item from the meal after purchase was made and an amount is to be refunded.

  • Merchant has overcharged for a previous meal purchased or service provided.

Transaction
Type
0723
S=Subsequent Payment
U=Unscheduled Payment
Field 07380047 Position 50054Initiated ByReason
COF Used
Return (09)SValue from Original Transaction ResponseA01MerchantUnscheduled
Return (09)UValue from Original Transaction ResponseA01CardholderUnscheduled

Scenario

Merchant initiates an Incremental Authorization.

Example

Merchant requires an additional authorization amount for meal purchased or to add a tip, an incremental authorization is performed using the COF.

Transaction
Type
0723
S=Subsequent Payment
U=Unscheduled Payment
Field 07380047 Position 50054Initiated ByReason
COF Used
Incremental Auth (75)SValue from Original Transaction Response401MerchantUnscheduled

Prior Authorization

Scenario
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
Unscheduled Payment
Field 0738Field 0047 position 5Field 0054Initiated byReason COF
Used
Prior Authorization (07)Same as initial Authorization Only (01)Value from Original Transaction ResponseSame as initial Authorization Only (01)01MerchantSame as initial Authorization Only (01)

Scenario

Merchant initiates a Reversal or Void of a previous COF transaction

Examples

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

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

Transaction
Type
0723
S=Subsequent Payment
U=Unscheduled Payment
Field 07380047 Position 50054Initiated ByReason
COF Used
Full Reversal (61), Partial Reversal (76) Void Sale (11), Void Return (17)Same as originalValue from Original Transaction ResponseSame as original01Same as originalSame as original

POS Data Code - Field 0047 Position 5 – Cardholder Presence

• Cardholder Present Value:

  • 0 = Cardholder present

• Cardholder Not Present Values:

  • 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

Entry Mode of the Transaction:

  • 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 – Possibly a different value from the request – merchant does not need to store this value

important

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