Credit Card on File is a Game-Changer for Businesses

Keeping a credit card on file is a convenient best practice for companies that know they will need to take payments later, once an order has been fulfilled or work is completed.

What Does Card on File Mean?

Card on file (COF) transactions allow companies to capture and store payment details from customers. The details are securely stored so the business can process transactions in the future without requesting those same details again.

Why Businesses Need Card on File or COF Merchant Bill Options

Card on file payments give companies the option to store sensitive information for customers when processing credit cards. A few ways businesses can take advantage of card on file payments are:

Reduced Late Payments

When customer card details are gathered, verified and stored on file, your company is better prepared to manage late payments.

Using payment automation software enables you to auto-run payments on their due date. This ensures payments are on time and eliminates employee follow-up calls and emails.

Looking to automate future payments and store payment details for flexible schedules?

PDCflow can help. Verify and store payment data securely. Control and configure your recurring payment system to meet your business requirements.

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Recurring Payments

Offering payment plans to customers is common for companies that:

Provide goods and services before payment is due
Sell high dollar amount items, like large construction orders
Offer expensive services, like medical procedures

A company that offers recurring payments should use software that captures, verifies, and stores a credit card on file.

Businesses need a reliable tool that will automate recurring payments, while ensuring payment compliance and security are still a priority.

Add-On Services After the Main Job is Done

If a client orders add-ons after the initial transaction, having a card on file makes this order fast and easy.

For example, a photography company may deliver work to a client. That client may ask for extra prints or other sizes of photos.

Card on file billing software makes it possible to charge for extra photos without gathering credit card information a second time.

Convenience for Repeat Customers

For companies with repeat customers, or freelance workers with a core book of clients, keeping a credit card on file should be standard practice when possible. Asking for payment information for every transaction causes friction and often results in late or non-paying customers.

Data Security

Card on file transactions are often more secure than storing physical payment information. Businesses can take advantage of encryption and tokenization in their payment software to protect customer data.

Streamlined Accounts Receivable

Automating accounts receivable processes with card on file transactions simplifies accounting and reduces the administrative workload associated with chasing down payments.

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How Does Card on File Benefit Customers?

Card on file transactions aren’t just good for companies. Customers often prefer card on file payment options. Here are some reasons why:

Convenience

The harder it is to make a payment, the more customers you will risk losing in the process. Keeping a credit card on file is a hassle-free, convenient way for customers to make a payment.

Reduced Late Payments

People get busy. Sometimes, it can be hard to remember to pay a bill by the due date. Card on file transactions make it easier for customers to fulfill their payment obligations without any extra work. This way, you get paid on time and customers don’t have to worry about manual payments.

Elimination of Manual Errors

Typing a credit card number can cause manual errors. Without card on file or Card Verify payment tools, this can cause problems for both customers and businesses. Card on file software should be able to validate card data before the first transaction is processed.

This saves time for companies who no longer need to reach out to correct typos. More importantly, it creates a better customer experience by streamlining payments for customers.

Easy Recurring Payments

Customers like having payment options. Offering recurring payment options helps companies rely on regular, on-time payments. More importantly, it offers a convenient way for customers to pay their bills.

With a card on file, companies can take regular, recurring payments without needing to ask customers for payment details before every payment.

What Do You Need to Accept Card on File Transactions?

There are a few items businesses should look for when finding a payment software to facilitate card on file transactions.

Permission from the consumer - any time you collect and store customer payment details, they need to know that is how your system operates, and must agree to this process.

A secure method of storing card data - the processes for storing and retrieving data need to be secure, heavily monitored and reliable. Your payment vendor should be able to handle this process.

PCI compliant processes - payment card industry standards require strict adherence to payment data storage rules. If you allow your payment vendor to manage this process, you reduce the scope of your compliance responsibilities.

How PDCflow Manages Card on File Transactions

PDCflow offers a number of features to make card on file payments possible for your business.

Card Verify

If a staff member or customer mistypes a credit card number, you won’t know until the first payment is due that a mistake was made.

WIth PDCflow’s Card Verify, you can validate payment details to catch incorrect card data at the time of entry. Card Verify alerts you right away, before a bad transaction is submitted.

Flow Billing

Flow Billing captures credit card information when your business enters client information into the system.

As part of the onboarding process, Flow Billing sends out an automated notification to customers, asking them to pre-fill their credit card information to be stored for payment later.

The system verifies the card details are correct and securely stores the necessary information. When the invoice date arrives, Flow Billing automatically processes payments.

This eliminates the need to log in and process payments manually and ends the need to make follow-up calls or emails due to nonpayment.

Online Payment Portal

A secure online payment portal is an essential part of offering card on file transactions. Many people like to pay online, without needing to speak to an employee.

For businesses where this payment model makes sense, your payment software should offer a secure payment page with self-serve options– including the ability for customers to create their own payment schedules.

PDCflow manages the secure verification, storage, and payment automation of card on file payments to make work easier for you and payments more convenient for your customers.

Find out more about what PDCflow can do for your business today. Request a demo from a Payment Expert:

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