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. 

[SpaStella]

This post was in regards to "processing recurring payments with cards on file" for a higher fee; my comment was that I would never do this as I am able to simply swipe the card and pay less.

[DaoDeJing]

Yes, I realize that was what you were saying.

And my comment is that of course you wouldn't use this feature if the card was right there; that's not the sort of business scenario this feature is meant for, so I don't think it's fair to criticize Square about it.

[SpaStella]

It says to use the feature for your regular clients.  If you know them, and they are regular repeat clients, I do not believe that the risk to Square would be severe, nor the increase in the fee worth it.  The increased cost is high enough that I do not know why anyone would want to use it.  In my opinion there is no value in this particular service.

[DaoDeJing]

Who the customer is or how regular a client they are is irrelevant. The risk comes from businesses making inaccurate or unauthorized transactions, even if just by honest mistake. It's a simple fact that if the physical card is not present, and perhaps even the customer themselves isn't present, there is an increased risk of a mistake.

Also, Square is not the only agent involved here. The credit card companies and banks are primarily the ones requiring the higher fees. This isn't some random feature Square made up to try and charge more. This is a long established regular banking practice across a wide variety of industries.

If you don't see a use for it, fine. But I think it unfair to judge Square for it just because you personally are ignorant of the sorts of businesses for which it would be a good service. Especially since it is the card companies and banks that are requiring the higher fee, not Square.

[SpaStella]

It appears that others also feel that the fee is too high, and Square has some control over fees despite merchants also contributing to the overall fee structure.  On this we will simply have to agree to disagree.

[jenkate16]

I have a client who prefers to not take the time for me to process the card when I have scattered internet.  I see her son at my barn office and process the card when I get back to my house with good internet.

[tml88]

I like this option but I wish Square would just keep the fee at 2.75% for Card on File. I don't see why it can't be done. I'm pretty sure business will be very happy about this. Comeon Square. Don't you want to keep us as your customers??

[DavidG]

Yes I like the idea of using it, but I too do not want to pay the extra processing fees.  If it is more secure then I would think it would either be the same or lower on the fees.

[VanKalkerFarms]

the reason the rate is higher for card on file, as far as I have read, is that there is a higher likelihood of fraud or extra charges resulting in more disputes.  a business owner could just charge the card on file an extra time (on purpose or accident) resulting in more chargebacks and creating a higher cost, the same reason manually typed in cards are higher so they are charged at the same rate.

[NikkiSweets]

I get it but if it’s a frequent customer 100$and up there should be some kind of break in manual runs. If it’s one time then fine if it a reoccurring then take it down. My reoccurring customers r making mine and your paychecks 

[gmallick]

Your fees are getting too high 😞

[Helen]

Thank you for your feedback @gmallick, I'll share your comment with the appropriate team. Keep in mind the this thread only refers to card on file transactions. For a full breakdown of Square's fees per transaction type head to our Support Center. 

[Jbadaro]

I would switch over to this option from my new company in a heartbeat if you didn’t elevate the processing fees like card wasn’t present. I do about $50k in card on file transactions a year and moved to another company with a more competitive rate. Lower the rate to your standard one and you’ll have all my business accounts back. 

[tml88]

Would love to know the name of this CC process. I will switch over if it's better. I have lots of repeat customer so I keep getting hit with 3.5%.

[NikkiSweets]

I would like to know the name of the company that is offering this and is there technology the same or better than what is offered by square

[Zillicoah]

When will Square offer short-term card number holdings. i.e. A customer wants to start a tab at a bar and Square has the ability to swipe and return the card to the customer. This is essential to a high volume business as many customers won't start tabs in fear they would have to stand in line again even if all they wanted was to close their tab.

[h2onmotion]

I saw that this was an option with Square and got excited, then I saw the added pricing. Square should want me to use this option to process more card transcations, yet the pricing  is not inline with good business sense.

[EJ_]

Thank for sharing your thoughts around this @h2onmotion

This is something our Product team is constantly looking at, and we'll continue to advocate on your behalf. 

If anything changes, we'll defintely announce it. 

[Jonw]

I read on your thread on 2/22/18 that a customer's card is automatically updated by their bank so we never miss a sale.  Is that still true?  Or is this now a manual process?

[Tom]

Hey @Jonw, thanks for checking in! To be sure I'm on the same page—are you referring to when a bank issues a new credit or debit card? If so, you or your customer will have to update their CVV and expiration date details manually. For more information on managing your customers' cards on file, have a look here: Save Payment Cards Online with Card on File.

Hope this clears things up! If I'm missing the mark, please feel free to reply with a bit more information and we'll take another look. 🙂

[Jonw]

Tom, thank you for responding!  I guess what I'm looking for and trying to say is we really don't want to have to chase payments when we have recurring payments set up.  This is the biggest headache.  I know of other credit card processing companies have an auto-updater where they do the updating and it appears seamless on our end.