Card-on-File Data Inquiry provides issuers with information about the card-on-file merchants (to issuers) where cardholders have transacted or with whom cardholders have stored their PAN/Token credentials for merchants to initiate payments.
The most transparent way to flag “Card on File” transactions is by identifying transactions initiated with “Point of Sale Entry Mode 10 (PEM 10).” Visa introduced this transaction type in October 2016 and is working with industry participants to adopt the new PEM. However, until PEM 10 gains full industry adoption, Visa will use a combination of techniques to identify merchants for a given cardholder where that cardholder’s credential is likely stored on file by that merchant. For a given cardholder, Visa will identify merchants that:
- Tokenized cardholder’s PAN (Through COF Token provisioning)
- Initiated transactions using PEM 10 for that card
- Initiated Recurring and Bill pay transactions
- Performed VAU update for that card
Using the Card-on-File Data Inquiry, Issuers can enhance their mobile or online banking applications to show the list of merchants and other COF data attributes to provide visibility into where a consumer’s card credentials are stored. In the event of card reissuance, the issuer can also display information around which merchants have received updated card details.