Following these guidelines, merchants can enable a seamless, friction-free checkout process and support various payment scenarios to enhance customer experience and maintain consistent revenue flow by utilizing CVV-free transactions, also known as card-on-file transactions.
All businesses can benefit from the speed, convenience, and hands-off nature of CVV-free payments This is especially useful in the:
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Subscription-based business
By storing customers’ card details, such businesses remove the need for them to re-enter their card details to bill their card periodically for a subscription. CVV-free transactions can also be used for additional purchases on top of the cardholder’s usual Guide
Create and maintain a stable and healthy business subscription model. subscription package, such as transactions initiated by the cardholder.
Other ways to improve the recurring payments process include picking a payment processor. This means that should one of the subscribers’ payments fail, your system will easily attempt the payment again through Solidgate with CVV-free transactions. -
In-app payment business
CVV-free transactions allow users to make these purchases without leaving the app: users don’t have to re-enter their card number and CVV. In the case of in-person transactions, they don’t have to swipe or insert the card.
CVV-free transactions can be initiated by both merchants and consumers - these are known as merchant-initiated transactions (MIT) and customer-initiated transactions (CIT).
A customer-initiated CVV-free transaction is when the customer selects the previously stored card data to pay for goods or services without entering their card details again. It’s commonly calls a one-click transaction and often needs to be authenticated with 3D Secure technology.
A merchant-initiated transaction is when the cardholder consents to the merchant taking the money from their account. These transactions are linked to the customer-initiated transaction where the agreement was initially set up.
Our
payment method
API
allows to identify the initiator of a payment. Please ensure to always provide payment_type for charge payments without CVV.
1-click |
A customer-initiated transaction (CIT) with the previously saved payment details, for example, another purchase on an e-commerce website. |
recurring |
A subscription-based merchant-initiated transaction (MIT), for example, monthly charges for cloud storage services. |
retry |
A reattempt of a merchant-initiated transaction (MIT) following an initial failure, for example, after a decline due to
Guide
The customer’s card balance has insufficient funds. insufficient funds decline. |
installment |
A merchant-initiated debit method that allows the transaction total amount to be paid in smaller, scheduled portions over a defined period. |
rebill |
An unscheduled withdrawal by a merchant that is triggered when needed, for example, an auto top-up initiated by the merchant under specific conditions. |
For transactions such as recurring, retry, installment, or rebill payments that utilize stored card details, it is highly recommended to specify the scheme_transaction_id, which is a card scheme specific transaction ID. |
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payment_type or submitting an unrecognized type results in a validation error (
Guide
“Invalid data” code message is used for validation errors, with the reason for the validation triggering specified in the body (object error) of the response. Also, the code message “Order not found” is used as a decline on orders in case of API response to request on non-existent order. 2.01 ), and the transaction will not be processed.
Handling dispute
In customer-initiated transaction (CIT) disputes marked as fraudulent, the responsibility primarily lies with the card-issuing bank, as these transactions undergo the bank’s security checks. This ensures that any fraudulent activity detected is managed by the institution that approved the transaction initially.
The responsibility shifts to the merchant for merchant-initiated transactions (MIT), which are both one-time and recurring. To avoid disputes, it is crucial for merchants to ensure that transactions are authorized and legitimate.
In cases of disputes related to undelivered goods or services or substandard goods or services, the responsibility lies with the merchant, regardless of whether the transaction is a CIT or an MIT. Merchants must ensure the quality and timely delivery of their products and services to minimize these types of disputes.
High
Guide
Prevent risk by keeping chargeback and fraud ratio below monitoring thresholds.
chargeback rates
can have severe consequences for merchants, including the potential for account termination or freezing.