Credit Card Storage Validation Policy - Usage Notice
What is the policy change?
Effective Dec 2025, when applying new/updated credit card information to a customer profile (such as with our Recur/Installment billing solutions) or our Transaction Administration databases for payment re-usage (such as with our Authorize Previous ability), said card will be automatically validated with the issuer via Address Verification Service or CheckCard Authorization (processor dependent), if it was not already authorized normally at time of being stored.
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To which situations does this apply?
This applies to those instances where new/updated cards are submitted, but were NOT being authorized normally at time of storage.
Here is a scenario where the automatic card validation does apply:
- Case: Merchant is given a new credit card number for an existing recurring customer. Merchant goes into Recurring Administration, manually keys in the details to the customer’s profile & saves it.
- Result: This action triggers the card validation process, since it needs to be approved by the issuer, before we can store it for future payment usage.
Here is a scenario where the automatic card validation doesn’t apply:
- Case: Customer signs up for a membership subscription & makes a successful payment at time of checkout, and profile is stored in Recurring Administration for future billing.
- Result: This action does not trigger the card validation process, since the sign-up includes an authorization with the issuer & was approved. Since card was approved at same time of storage, it does not need to be checked again & we can store it directly to our records.
Cards that have been authorized normally at time of storage, (such as during subscription sign-ups or 1-time/shopping cart payments), will be exempt from this additional validation requirement. All other cards stored will have to validated with the issuer, before we will be permitted to store it for future payment re-usage.
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How does this apply to me?
Since an authorization is required to validate the card with the issuer, regardless if its for Address Verification Service charge (0.00 auth) or CheckCard Authorization (1.00 auth + void), your normal processing fees apply. This constitutes an authorization on your end to perform this validation.
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Why is this necessary?
This validation is required by all merchant processors in order to permit the card to be later re-used on demand. Without this, the processor/card issuer would reject any re-use of the card data (such via an Authorize Previous request) or attempt to charge the customer an automatic recurring/installment payment.
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What can I do to minimize this?
If possible, have customer reprocess their sign-up or payment themselves. This way the authorization is for the actual amount you wish to collect right now. At which time, assuming the charge is approved, it can then be stored/update on our end for use on future payments.
This saves you from having to process an 2 charges; where one is the validation to store the card, and the other is to authorization for the amount you want to collect right now.
Since you are reducing the number of authorizations needed to meet the same goal, this saves you on those related processing fees.
Validation is required for all credit card processors. If a card is to be stored to our system for re-use in any capacity, it must be authorized at time of being stored. Your only way to minimize this is to reduce the number of extra authorizations calls that need to made via your account.