Overview

When processing payments through a Payment Service Provider (PSP) API using stored card details (tokenized cards), it's essential to explicitly indicate the type of "Card on File" (COF) transaction. These flags specify the context and authorization method of the transaction, ensuring accurate processing and compliance with payment networks and regulations.

Supported Card on File Transaction Types

Preczn supports the following COF token usage types:

Customer: A single, customer-initiated transaction where the cardholder actively authorizes each transaction individually.
Merchant: A single, merchant-initiated transaction where the merchant charges a stored card on behalf of the customer, typically without direct customer interaction at the transaction time.
Recurring: Regularly scheduled merchant-initiated transactions (e.g., subscription billing), where payments are automatically processed at predefined intervals.
Installment: Merchant-initiated transactions split into multiple payments, where the total cost is distributed over agreed-upon intervals.

Importance of Sending Proper Flags

Compliance and Security: Properly flagged COF transactions ensure adherence to payment network guidelines, minimizing the risk of transaction declines or disputes.
Accurate Processing: Clearly indicating the transaction type allows for precise handling by PSPs and issuing banks, ensuring smoother approvals and efficient settlement.
Enhanced Customer Experience: Correct categorization reduces customer friction and ensures transparency regarding billing practices.
Risk Management: Clearly identifying the type of COF transaction helps detect anomalies and potential fraud more effectively.

Default Behavior

If the tokenUsage field within the payment block is not explicitly provided alongside a token during a transaction request, we will default to treating the transaction as a "customer" initiated type. Explicitly specifying the tokenUsage field is highly recommended to ensure accurate processing aligned with the intended transaction context.

Note: The tokenUsage property is only effective when sent alongside a token within the payment block of a transaction request. It has no effect otherwise.

Mapping to PSP COF Flags

Preczn endeavors to map card-on-file flags to every supported PSP with best-effort accuracy, based on available transaction and token data provided by our clients. This mapping aims to ensure maximal compatibility and adherence to PSP-specific requirements.