As we know we are in a space where seamless transactions are valued by customers. Visa and Mastercard have released a mandate that will come into effect 30 June 2022.
This mandate is in relation to Credentials on File(CoF) and this impacts merchants who participate in recurring transactions


What are Live Credentials on File?

A stored credential is information, including but not limited to, a card number or payment token, that’s stored by a merchant or a third party on their behalf to process future purchases for the cardholder.
 

Why are VISA and Mastercard making these changes?

Due to the increase in the number of transactions where stored credentials are used, the Card Schemes want to be able to identify their storage and subsequent use to enable appropriate processing. This should lead to improved authorization approval rates and completed sale transactions.

Credential on File (CoF) is a requirement from Visa and MasterCard in order to provide greater visibility for all parties into transaction processing to identify initial storage and subsequent usage of stored credentials to determine the risk level. By providing these details it will increase the approval rate and improve the cardholder experience. If you offer the cardholder to store their credentials for future use or recurring it’s required to have cardholder consent.


What are the requirements to make these changes? 

You, or the third party you use, must:

  • Obtain the cardholder’s consent for the initial storage of their credentials, and

  • Use appropriate data values (Stored Credential Indicators) to identify the initial storage of the credential and the subsequent usage of that stored credential.

The current setup

  • For Initial payments “recurringType=INITIAL”
  • For repeated payments “recurringType=REPEATED”

This parameter is now being split into 3 separate parameters to allow for more descriptive and informative ways of sending recurring payments.

New Parameters 

standingInstruction.source:

  • - CIT (customer initiated transaction)
  • - MIT (merchant initiated transaction)

standingInstruction.mode:

  • - INITIAL 
  • - REPEATED

standingInstruction.type:

  • - RECURRING
  • - UNSCHEDULED
  • - INSTALLMENT


Meanings behind standingInstruction.type

RECURRING

Recurring Transactions are transactions that are processed on a regular fixed interval for a pre-agreed or advised amount, where applicable. Recurring Transactions don't have a fixed duration and will continue to be processed until the cardholder cancels the agreement.

UNSCHEDULED

An unscheduled credential-on-file transaction is like a recurring transaction but differs in that it does not happen at pre-agreed intervals. The classic example of such a transaction is when it is triggered by an event such as an amount threshold to ensure that a pay-as-you-go account always has a minimum available reserve

INSTALLMENT

Instalment Payments are transactions that are processed on a regular fixed interval for a pre-agreed amount for a single purchase of goods or services. Unlike Recurring Transactions, Instalment Payments do.

The link below is a breakdown of how the payment request should look with the new parameter

Copy + Pay Recurring Payment Flow


WHEN should this be done?
No later than 30 June 2022, however we would recommend allow sufficient time in the event you run into unforeseen issues


Please do reach out to your Peach Payments Account Manger, or email us at support@peachpayments.com  should you have any queries about this. 

We look forward to Peach Payments continuing to work hand-in-hand with your business, continuing our journey of growth.


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Thank you!

The Peach Payments Support Team