Payments
Card on file (stored credential)
Updated
A card on file is a customer's card saved by a merchant or its payment provider, with permission, so later payments can be charged without re-entering it.
Saving a card lets a store charge renewals, one-click repeat orders and post-purchase upsells. The card number is held by the payment provider as a token, so the merchant never stores the raw number, and the security code is never kept.
Card networks call these stored credentials and have rules for them. Visa's rules require the agreement to state the amount or how it is set, the currency, how the stored card will be used, the timing of charges and any trial length, shown separately from the general terms when the customer consents. Payments the merchant starts without the customer present are merchant-initiated transactions.
Saved cards go stale when they expire or are replaced. Account updater services and network tokens refresh the details automatically, which keeps renewals from failing for avoidable reasons.
Frequently asked questions
- Is it safe for a store to keep my card on file?
- The card is held by the payment provider as a token, not by the store as a number, and the security code is never stored.
- What is the difference between card on file and a merchant-initiated transaction?
- Card on file is the saved card. A merchant-initiated transaction is a payment the merchant charges to it without the customer present, such as a renewal.