Card on File

The term Card-on-File refers to the practice of securely storing a cardholder’s credit or debit card information on a merchant’s server for use in future transactions. The cardholder provides consent for their card information to be stored, usually during a purchase or when setting up a recurring payment arrangement, such as a subscription service.

Having a card-on-file streamlines the checkout process, enabling quick and convenient future transactions for the customer. It also aids businesses in managing recurring payments, refunds, and chargebacks more efficiently.

Although card-on-file offers numerous benefits, it necessitates stringent security measures to protect cardholder information. This includes encryption and tokenization, aimed at preventing unauthorized access and ensuring compliance with Payment Card Industry Data Security Standards (PCI DSS).