Stored Credentials

To maximize approval rates for recurring and subscription-based charges, many card brands and processors mandate that merchants send information indicating when credentials are stored on file. This additional information helps in identifying the use and storage of payment credentials. By adhering to these stored credential frameworks, merchants should experience higher approval rates.

Subscribe Pro offers robust support for transmitting stored credential data with card transactions for all of our Native Payment Provider Integrations. Subscribe Pro takes care of storing and sending provider-specific details, making it possible for payment methods to effortlessly transition between different gateways.

In line with recommendations from Mastercard and Visa, the initial step in a stored credentials transaction is to complete a Cardholder Initiated Transaction (CIT). During this phase, the cardholder authorizes and, if required, authenticates the transaction. Subsequently, a network transaction ID is generated that serves as a reference for the agreement between the cardholder and merchant. This ID should be included in any follow-up Merchant Initiated Transaction (MIT), signaling to the issuer that the payment method has prior successful usage under the current agreement.

In regions enforcing Strong Customer Authentication (SCA) like the European Economic Area, the importance of stored credentials has escalated. MITs are exempt from SCA requirements, meaning 3D Secure isn't necessary for transactions that were initially authenticated during the CIT. By using the stored credentials framework, you're informing the issuing bank that the transaction is merchant-initiated and tying it back to the original, authenticated CIT. This can significantly improve transaction success rates.

Stored Credentials Framework Compliance

Subscribe Pro supports the following processing requirements:

Stored Credentials Terms

CIT (Cardholder-Initiated Transaction)

Transactions where the cardholder actively participates, such as in-store or online checkouts, even when stored credentials are used.

Credential on File CIT

Card-absent transactions initiated by the cardholder where stored payment details are used. Examples include digital wallets and customer profiles.

MIT (Merchant-Initiated Transaction)

Transactions initiated by the merchant without the cardholder's active participation. Examples include hotel mini-bar charges and recurring magazine subscriptions.

Standing-Instruction MITs

Transactions based on pre-agreed cardholder instructions for regular provision of goods or services. Includes installment and recurring payments.

Installment Payments

This is a type of standing-instruction MIT. A series of transactions using stored credentials for a single purchase, initiated by the merchant over a set period.

Recurring Payments

This is a type of standing-instruction MIT. Transactions processed at regular intervals (max one year apart) using stored credentials, for ongoing goods or services.

UCOF (Unscheduled Credential on File)

This is a type of standing-instruction MIT. Transactions using stored credentials for non-scheduled or irregular amounts, like an account auto-top-up.