What is card on file? How saved card payments work

By SendPay Business · · 2 min read

What is card on file? How saved card payments work

Card on file means a customer's card is saved so they can be charged again without typing the details each time. It powers one-click checkout, subscriptions and account top-ups.

How it worksCustomer and business-started paymentsKeeping cards safe

How it works

  1. The customer pays once and agrees to their card being saved.
  2. The card number is swapped for a token, so the real number isn't stored by the business.
  3. Later payments use the token, either started by the customer or, with agreement, by the business.
  4. The customer can remove the saved card or cancel at any time.

Customer and business-started payments

When the customer clicks to pay with a saved card, it's customer-initiated. When the business charges on an agreed schedule, like a monthly subscription, it's merchant-initiated. Card schemes have rules for both, including telling the customer clearly what they're agreeing to.

Keeping cards safe

Storing raw card numbers brings heavy PCI DSS duties, which is why most businesses rely on tokens held by their payment provider.

Where SendPay fits

SendPay platforms include subscriptions, payment links and invoicing, alongside GBP, EUR and USD accounts and branded Visa cards under your own brand, powered by licensed partners.

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Create your own financial platform.

Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.

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Questions people ask

What do failed subscription payments cost me?

Work out what failed renewals cost a month and a year, and what winning more back is worth.

Failed subscription payment calculator →
How many saved-card payments get declined?

Work out your approval rate and what declines cost you a month.

Payment authorisation rate calculator →
What is card tokenisation?

Replacing a card number with a safe stand-in.

Card tokenisation →
What is recurring billing?

Charging customers automatically on a schedule.

Recurring billing →
What is PCI DSS?

The security standard for handling card data.

What is PCI DSS? →

Read next

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.