Square Launches Card on File Feature for In-Store Purchases

September 29, 2016, Written By Natalie Rutledge
Estonia - September 24, 2014. Visa and Mastercard credit cards

Square is launching a new feature called Card on File that will allow merchants to securely store customer credit card information to use for future purchases. This is a voluntary service that the customer must sign up for; stores cannot keep the information on file without the customer’s permission.

Card on File is essentially a mobile wallet, but instead of being linked to a person’s phone, it is linked to a register. Once the card information has been entered and saved, the merchant can charge the card without having a physical card present.

Imagine the local restaurant you go to often and you want to say “put it on my tab” when you place an order. With Card on File, you may be able to do just that, without having to swipe your card or pull out cash with every purchase.

This feature is also beneficial for merchants who use remote billing. If customers need to pay when they are not physically in the store, merchants can use Card on File to charge them remotely.

There is a 3.5% fee plus $0.15 per transaction for Card on File purchases. This is more than the standard 2.75% Square charges for card-present transactions, including payments with mobile wallets, but it is the same fee charged for card-not-present transactions (when someone has to key in the card number). There are no monthly fees for using Card on File with Square Register, and most deposits are completed within two business days.

The Card on File feature is only currently available for Apple iOS, but the company is working on getting it for Android devices soon.

The information contained within this article was accurate as of September 29, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Natalie Rutledge

Natalie Rutledge majored in Communications at Mississippi State University. She was in sales for a number of businesses and spent nine years working as a communications advisor to various entities. Natalie can be contacted directly at [email protected]
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