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Credential on file indicator for Mastercard-branded transactions

Mastercard 01/02/2018

What’s changing?

Mastercard is introducing new values in both authorization and clearing messages for use in identifying Mastercard-branded transactions initiated by a merchant using account credentials on file in their consumer records.

Current situation

Merchants currently do not need to send “credential-on-file” indicators in Mastercard authorization and clearing messages.

What does the change mean?

The Credential on File indicator:

  • Allows a merchant to identify a pre-existing relationship with a cardholder to the issuer, using an identifier that is common across the payments industry.
  • Is expected to increase approval rates for e-commerce transactions initiated with cardholder payment credentials already stored by, or on file with, the merchant or the service provider.
  • Is expected to help make identification of types of Credential on File transactions clearer for issuers.

How will this affect you?

Merchants will need to send the new “Credential-on-file” indicator in both authorization and clearing messages for transactions initiated by a merchant using account credentials already stored previously. Examples of credential-on-file transactions are:

  • Instalment payments
  • Recurring payments
  • Card-not-present transactions for which the cardholder authorizes the merchant to use the credential-on-file for payment
  • Card-not-present transactions originating from a merchant’s brick-and-mortar location for which the cardholder authorizes the merchant to use the Credential on File

Payvision will send updated technical integration documents with the new “credential-on-file” values to merchants with instructions on how to use them.

Effective date

12 June 2018