Introduction to Credentialed Transactions

Credentialed transactions, also known as credentials‑on‑file (COF) or card‑on‑file transactions, are payments that either store a customer’s payment credentials for future use or use previously stored credentials to complete a transaction.

All COF transactions begin with a customer‑initiated transaction (CIT), in which the customer actively participates, such as a card‑present purchase, online checkout, or use of a stored credential. During a CIT, customers can elect to have their credentials stored for future CITs or for merchant‑initiated transactions (MITs).

MITs occur without the customer’s active involvement and include follow‑on industry practice transactions and ongoing, scheduled standing instruction transactions.

Merchants following the stored credentials framework experience these benefits:

Get better visibility into transaction risk.
Improve authorization success rates.
Create a smoother customer experience.
Reduce disputes and customer complaints.
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