What is 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.
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.
12 June 2018