Process recurring payments with Card on File

[jxu]

What is Card on File?

Card on File allows you to process recurring or subscription payments. You can store payment details for your regulars and charge them at the tap of a button to save time at checkout. This can be done through the Point of Sale app, Invoices, or Virtual Terminal.

Below is an example of how Card on File works in Virtual Terminal. After saving a customer’s card information, simply select the customer you want to charge and you’re done!

 

When to use Card on File?

Below are some examples of when Card on File may be handy for your business!

Remote billing

Skip the phone tag (and that notepad full of credit card numbers) and store customer payment information safely — then bill them when you need to.

House accounts for your regulars

Give your regular customers the convenience of house accounts so that their transactions are quick and seamless when they come in

 

Recurring invoices

Sending recurring or multiple invoices to the same customer? Save their cards on file to immediately process invoice payments and get paid faster.

Why use Card on File?

• Speed: save time by finding customers quickly and charging them instantly.
• Security: store customer payment information safely in Dashboard.

How to use Card on File?

• How to use Card on File with Square Point of Sale application
• How to use Card on File with Square Invoices
• How to use Card on File with Virtual Terminal
• Save payment cards to customers in your directory. Here is how to link a payment card to a customer profile.

Pricing

Pay just 3.5% + 15¢ per transaction when you use a card on file with Square Point of Sale application, Virtual Terminal or Square Invoices. 

FAQ

Why is the pricing for Card on File higher than for swipe, dip, tap?

As a manually entered card payment, this feature follows our standard pricing for these types of charges.

Can my customer manage saved cards from their end?

Your customers can remove their card by following the link provided in their last card on file notification. They will receive notifications when their card is stored, email address is changed, and when a payment is made using a card on file. 

[Tom]

Ah, yes! If, for any reason, a card on file payment isn't successful—our system will automatically fall back to emailing an invoice where your customer can enter their new card information and elect to keep it as the new payment source on file going forward. Both you and your customer will be notified that the card on file wasn't charged.

I realize that this isn't the exact outcome that you would like to see in terms of full automation, though hopefully your customers will be able to self-update their card information as they receive the notifications/prompts. Please do keep in touch as we're always working on updates based on seller feedback—we definitely do not one anyone to miss out on a payment.

[madman]

3.5%+15c...... IS INSANE for any business and  impossible for small transaction amounts. Square stop the madness.

[EJ_]

@madman Thanks for sharing your thoughts around this. That pricing structure only applies to Card on File and Manually Keyed payments. If you swipe dip or tap a payment, the fees will be lower. The same goes for any Invoice payments. 

You can view our full pricing breakdown on our Pricing Page. 

[madman]

Sure, apply your logic to a coffe shop with a 5$ average transaction and 75% of customer returning daily and then will see how much sense it makes..

[EJ_]

You're right, it might not make the most sense for you to use that payment style @madman

Fees are always a tough thing to get right, and we're always looking for ways to make this easier on sellers. 

I've seen a few sellers apply a surcharge to their customers who choose to use Card on File or Card payments in general. While not ideal, it might help with the fee amounts. 

Check out this thread if you're interested:

How do I add a surcharge to my customers bill?

[madman]

I am speechless. this response is as much canned and lacking ground in reality as it can get. please stop replying to my comment. thank you

[DaoDeJing]

@madman I'm not sure what you're looking for. They answered your question fully and thoughtfully. Just because you don't like the answer doesn't mean it wasn't a good one.

Using card on file is a bonus feature. A benefit. Something extra. It's also extra risky for Square.

If you don't think the feature is worth the extra cost (which I agree it probably is not in your case) then simply don't use the feature. I don't think many customers would expect to have a constantly open running tab at a coffee shop, and if they do want that handy bonus feature perhaps they'd be willing to pay for it. If not, then not.

[Lambrite]

Not sure why the extra fee, since I would have swiped, dipped or tapped the first payment to record the number.  My clients who don't want to fool with payments each visit currently write a check, which is free for me, so I'm not encouraged to offer them this method.

[DaoDeJing]

@Lambrite the reason for the higher transaction cost is because these transactions don't require the actual card be present. In other words, the banks are just trusting that you are charging the card for a legitimate transaction with the customer's approval. Clearly, this system sees a lot of fraudulent charges, or at least many charge-backs because the customer may not recognize the charge (since they never pulled out their card and indeed many not have even been present when the charge was processed).

The higher fee is to take into account the expense of all these added charge-backs and disputes. The banks are charging most of this fee. It's not like Square is unilaterally just charging more on a whim or something. Not at all.

So sure, card on file transactions may not be worth the added cost for every business, especialy those with relatively low price transactions like coffee shops. Then don't use the feature. The card on file feature is something that's generally only commonly used in larger business-to-business transactions.

[MikeSpikes]

We run a small, independantly owned coffee shop, and we have an old fashioned index card system for returning customers who want to run a pre paid tab.  We have been wanting to replace this for years, and this would be the perfect solution if only you'd allow us to charge lump sums (like $50 at a time).  The way this is structured currently, it just wouldn't make sense for us financially to go with this solution.  Please Square, we've been customers for years! Give us a solution we can use!

[neutral]

@MikeSpikes if your customers are okay with a pre-paid tab, there is already a solution for that. Have them purchase a gift card that you keep in-house. You pay for plastic card and your standard Square fees. If you prefer the card-on-file system, you can do the eGift card at 2.9% + $0.30 per card. It's higher than your standard fees, but you don't have to pay for the phsyical card. You can do the math to see which works best for your business.

https://squareup.com/help/us/en/article/6000

[SpaStella]

I would never use this service.  Why do this for such a high cost?  If they are there, I can easily swipe the card and save a lot of money.  I would only use this if it were offered for no extra charge.  Period.

[DaoDeJing]

@SpaStella This feature isn't meant for every type of business. Generally only large, repeat order types of business would find the feature helpful.

The higher cost is to compensate for the much higher rates of fraud and chargebacks associated with transactions where the physical card is not present. If the card is present, then of course it's better to just use it.

[Charlesbrennens]

I have to say, I don't feel the need for Speedy check outs with my clientele, especially at such a high cost .75% more + $0.15? I'd much rather take 15 seconds and run their card. Be reasonable this is just a convenience made easier for you and possibly riskier for us. I believe you need to reconsider that outrageous cost. I appreciate the .25% extra we have to pay on instant deposit, which I don't understand anyways now that we have zelle. However thank you for what you have done for this business over the past few years, much cheaper than doing a hard line and a third person party to process cards. I just am telling the truth. Thank you again

[FergLead]

I'm with everyone else on avoiding the higher fees for non-swiping card transactions. And waiting until tax time to recover these fees does nothing for cash flow!

[CH17]

I have a VIP membership at my new Med Spa and saved my first customer card on file, sent her and invoice for a recurring payment for 8/8/16

will square automatically process the payment or will I have to physically charge her card the amount Tommorrow as a transaction? 

[puka]

Hey @CH17 - If you have recurring Invoices set up with a Card on File, it should automatically charge the card for you. Payments are typically processed at 10am local time. Hope that helps clear things up for you!

[Colleena]

How can I integrate this with Jobber? I use them for invoicing but payments they square

[Helen]

Hey @Colleena! I recommend reaching out to Jobber confirm if they have a recurring payment feature for sellers who use the Square integration. You can email them directly at support@getjobber.com or visit their Support Center.

[Laceybrown44]

My clients find a great deal of security knowing that by providing their information every time, they know I’m not storing information on them and they can have peace of mind that it will never be misused. 

[CoffeeRoaster]

Yes, I have started using this feature. It's great for recurring invoices and for people who want us to process everything for us.

Thank you guys for always thinking ahead.

Best,

Dave