Unscheduled Card on File (UCoF)

An Unscheduled Card on File (UCoF) payment refers to a specific type of recurring payment setup that does not follow a predetermined schedule. Unlike regular subscription payments, which occur at fixed intervals (like monthly or annually), UCoF transactions can happen at irregular intervals and may involve varying amounts. This method is particularly useful in situations where the timing and amount of charges depend on the usage or needs of the cardholder.

One common example of UCoF is automatic top-ups or reloads. For instance, if a cardholder’s prepaid account balance falls below a designated threshold, an UCoF transaction can automatically replenish the balance to a set amount, ensuring uninterrupted service or usage. This type of payment setup is also employed in contexts where periodic billing might fluctuate based on consumption or accrued charges, such as utility bills, pay-as-you-go services, or cloud computing resources where usage can vary from month to month.

For merchants, implementing UCoF transactions requires careful consideration of security and compliance standards, particularly those set by the Payment Card Industry Data Security Standard (PCI DSS). Merchants who are PCI-Compliant at Level 1 or Level 2 may choose to store card details on their own systems. However, those who do not meet these stringent security requirements must utilize a payment service provider to store and handle card details securely. This ensures that sensitive cardholder data is protected against unauthorized access and fraud, maintaining the integrity of the payment process and safeguarding customer trust.