Credentials On File
HostedPCI supports the implementation of Credentials on File to help further secure transactions. This feature allows merchants to reduce the chances of chargebacks and results in higher acceptance rates of authorized transactions. The Credential on File mandate, also known as the MIT Framework, was first introduced by Visa in 2018 and has since been implemented by Mastercard. This mandate further protects your customer from fraudulent transactions by informing the issuing bank that the transaction is authentic and the customer approves the relationship with the merchant.
Credential on File works in a two-step process: Customer Initiated Transaction (CIT) and Merchant Initiated Transaction (MIT). The Customer Initiated Transaction is the original transaction where the Issuer ID is generated and stored. The CVV is always required on the first transaction in order to initiate the process. All future transactions processed using the Issuer ID and credit card credentials are referred to as the Merchant Initiated Transaction. The CVV is then no longer required and the Issuer ID is used to authenticate the credit card. Once the merchant is provided with the Issuer ID, they can store it along with the credit card credentials to issue recurring transactions.
What is HostedPCI’s role with the Credentials on File feature?
HostedPCI’s integration helps with the safekeeping of the payment data collected. Once the gateway has returned the Issuer ID, HostedPCI stores it alongside the credit card number in the merchant’s vault. The merchant then has the option of retrieving this data from HostedPCI and sending it themselves within the payment request, or HostedPCI can grab it from the vault along with the credit card and send it directly to the payment gateway when a transaction is sent.
This feature can be used alongside fraud detection methods such as 3DS 2.0. In Europe, Credentials on File must be implemented with 3D Secure 2.0 authorization as a requirement.