Standing instructions require stored credentials. The stored credentials framework sets standards for the storage and subsequent use of stored customer credentials by merchants. Transactions that use stored customer credentials are called credentials-on-file (COF) transactions.
By following the stored credentials framework, merchants are expected to:
  • Gain greater visibility of transaction risk levels.
  • Achieve higher authorization approval rates and completed sales.
  • Improve the customer experience.
  • Reduce customer complaints.
  • Participate in the Real Time Visa Account Updater service.
For more information on the stored credentials framework, see Improving Authorization Management for Transactions with Stored Credentials.
Standing instructions include these types of transactions:
  • Merchant-initiated unscheduled transactions (UCOF)
  • Installment transactions
  • Recurring transactions
  • Subscription transactions (Mastercard only)
  • Standing order transactions (Mastercard only)
All COF transactions start with customer-initiated transactions during which customers elect to store their credentials for future use.

Requirements for Standing Instruction Transactions

Merchants who offer stored credentials must:
  • Disclose to cardholders how those credentials will be used.
  • Obtain the customer's consent to store credentials.
  • Notify cardholders when changes are made to stored credential terms of use.
  • Inform the card issuer during an authorization that the payment credentials are now stored on file.
  • Identify transactions that use stored credentials.