Mobile Payment Processing for Field Service Businesses

You’ve spent the day out in the field, helping a customer. Now that the project is wrapped up, you pull out a mobile card reader to process the customer’s payment and realize there’s no cellular service.

Unfortunately, this type of scenario is common for field technicians, contractors, food trucks, and other businesses that sell mobile services. Low connectivity, card-not-present (CNP) risks, receipts, and cash flow timing concerns are all problems that businesses face.

By learning more about the best mobile payment processing options for your business, you can achieve a better customer experience and a more stable income stream. To learn more about how to overcome common mobile processing challenges, read on.

TL;DR

• Field service businesses rely on payment processing in the field in order to bring in revenue.
• Mobile processing can involve tap-to-pay, mobile card readers, payment links, or virtual terminals.
• When transactions are keyed in, it increases fees because of the higher chargeback exposure involved.
• Poor connectivity at job sites can interrupt the processing of payments. To ensure smooth payment operations, merchants should look for mobile setups that feature an offline mode.
• In order to select the best payment processor, businesses must consider each processor’s payout timing, pricing model, hardware options, and software integrations.
• Through the mobile solutions offered by PayCompass, merchants can streamline their payment collection processes and offer customers a more professional experience.

Mobile Payment Options for Field Service Businesses

The right type of mobile merchant services will depend largely on the payment options you need. For field service businesses, the easiest payment options tend to involve tap-to-pay, virtual terminals, mobile card readers, or payment links.

Tap-To-Pay on a Smartphone

With near field communication (NFC) technology, you can process mobile payments without needing any additional hardware. Contactless cards and mobile wallets can be processed directly through the technician’s mobile device. Because of its design, tap-to-pay is known as one of the most affordable, convenient setups for field service businesses.

Mobile Card Reader

A mobile card reader can process payments once it is connected to a tablet or phone. With this type of setup, you can accept chip, swipe, and contactless payments out in the field. Often, providers also include receipt capabilities, reporting features, and invoicing.

Virtual Terminal

A virtual terminal allows you to key in transactions manually. While this is convenient for mobile credit card processing, it can lead to paying higher CNP fees. However, having the option to process payments by phone is incredibly useful, especially if you’re operating in an area that has low connectivity.

Payment Links Sent by a Text Message or an Email

Some companies process payments by sending a secure payment link via text or email. Once the customer receives the link, they can pay using debit cards, credit cards, or mobile wallets. This option is ideal if you want to collect a deposit before the project begins or send a bill after the work is complete.

A Quick Comparison of Mobile Payment Methods

Before you can pick the right mobile payment setup for your field service payment processing, it helps to understand the different types of mobile payments for small businesses, the hardware requirements, and costs. 

It should also be noted that mobile wallets are technically a form of contactless payment. Because of this, the entries for mobile wallets and contactless payments overlap significantly.

Payment Method	Hardware Required	Card Present (CP) or Card-Not-Present (CNP)	Typical Fee Range	Best For
Mobile Card Readers	Card reader and a mobile phone or tablet	CP	2% to 3%	On-site payments when your technicians are at a service call
Mobile Wallets	A device or reader that is NFC enabled	CP	2% to 3%	Convenient, touch-free payments
Contactless Payments	A card reader that is NFC enabled	CP	2% to 3%	Speedy, tap-to-pay transactions
Digital Invoices	No additional hardware is necessary.	CNP	2.5% to 3.5%	Large orders or jobs and scheduled projects
Payment Links	No additional hardware is necessary.	CNP	2.5% to 3.5%	Follow-up or remote payments
ACH Bank Transfers	No additional hardware is necessary.	N/A (bank transfer)	A flat fee or 0.5% to 1.5%	High-value invoices and low processing fees

The Card-Not-Present Risk Field Service Businesses Often Miss

When you accept credit card payments by phone, you must key in the card number to process the transaction. Any time you’re dealing with keyed-in transactions, you’ll end up paying higher interchange fees because CNP transactions have a higher chargeback exposure than CP payments.

As a business, you can reduce your chargeback exposure and risk by always getting a signature or digital receipt. Additionally, AVS verification can help reduce fraud risk and improve transaction qualification rates.

Additionally, we recommend storing your job records and any communications with your customers. If there is a dispute in the future, you can use this documentation as evidence that the customer received their services.

Connectivity and Hardware Considerations

When you’re at a job site, you aren’t in control of the internet connection or cellular signal. If connectivity drops in the middle of the transaction, it can affect your ability to bring in revenue. 

The good news is that many mobile readers offer an offline mode. When you lose connection in an industrial building or a rural area, the mobile payment reader can store the encrypted payment data temporarily. As soon as your connection is restored, the payment can be submitted for processing.

However, payments processed offline are not officially approved until the device reconnects. Once the connection is restored, the payment could be declined.

To process offline payments, you’ll likely need tap-to-pay, tablet setups, or phone-attached readers.

• Mobile Readers: These compact devices can process chip, contactless, and swipe transactions. While these devices are convenient, using a mobile reader can lock you into the processor’s ecosystem.
• Tap-To-Pay: Tap-to-pay works with NFC-enabled phones. You can instantly process contactless payments without needing any extra hardware.
• Tablet-Based Setups: This type of mobile point-of-sale (POS) system can handle invoicing, payment collections, signatures, and scheduling within a single system.

Fees, Payouts, and Cash Flow

Whether you’re a plumbing company, a landscaper, or a mobile vet, the type of mobile payment solutions you use will determine your fees and payout timing. Before you pick a specific provider, consider the following factors.

Per-Transaction Flat Rates vs. Interchange-Plus Fees

For mobile payment processing, you’ll typically be charged a per-transaction flat rate or interchange-plus fees. Flat-rate fees are charged as a percentage of each transaction. Flat-rate pricing is generally more common among small businesses because it is simpler to understand.

In comparison, interchange-plus pricing involves paying the interchange fee set by the card network with an added markup from the processor. This fee type is used less often by small businesses because of how complex it is. If you have a high transaction volume or a large ticket size, interchange-plus pricing can lower your processing costs.

Monthly Minimums

Many merchant account providers charge fees if you don’t meet your monthly minimum for service fees or the amount processed. Along with monthly minimum fees, you should also review all of the equipment, statements, PCI compliance, and early termination fees charged by each processor.

Next-Day vs. Standard Payout Timing

Many processors release funds two to three days after a payment is processed. If you have to buy materials for another project or to pay your workers, this timeline can be too long. With some processors, you can get next-day or same-day payouts.
Even with next-day and same-day funding, certain transactions may still take longer to process. For example, the processor may hold transactions longer for new accounts. If an unusually large transaction occurs, the payment processor may hold the funds as well.

Setting Up Mobile Payments for Your Field Service Business

For successful field service payment processing, you need to find the right processor and make sure your documentation is prepared before you apply. With the right approach, you can quickly set up branded payment links, digital receipts, and a professional payment flow.

How To Prepare Before You Apply

Before you apply for an account, you should organize all of your business documents. You’ll need a dedicated business account, basic invoice templates, and receipt templates. The underwriter will want to review your cancellation and refund policies. Additionally, you’ll need to identify the payment methods you will use, your average ticket size, and your transaction volume.

What To Look for in a Processor

While each contractor has different needs, the following are some of the most important qualities to look for in mobile merchant services.

• Offline processing support
• Tap-to-pay, mobile wallet, and payment link support
• PCI-compliant security
• Transparent pricing
• Same-day or next-day payouts
• Scheduling and invoicing integrations
• Advanced reporting features
• Hardware options

How To Set Up a Professional Payment Flow

Once you’ve found the right payment provider, there are a few things you can do to streamline your payment collection processes. Whenever possible, provide a digital invoice or estimate that the customer can refer to. After they pay for a transaction, you should also give the customer a digital receipt.

How you train your workers will impact the success of your mobile processing systems. Workers should be taught to collect customer signatures when the payment is processed. They should also verify that the payment has gone through before they leave the job site.

By being proactive, you can prevent chargebacks and increase the likelihood that you will win any disputes that do occur. All receipts, invoices, estimates, and customer communication should be stored for potential disputes. 

Customers often file chargebacks when they don’t recognize the statement descriptors. You can prevent disputes by making sure your descriptors are clear and match the services provided.

Field Service Payment Collection Checklist

With the following checklist, you can quickly get your technicians set up with mobile payment processing options. 

• Find a mobile payment processor that works with field service businesses.
• Set up your account so that you can accept multiple payment methods, including digital wallets.
• Equip your technicians with mobile card readers for processing payments. 
• Enable offline payments so that technicians can process payments in areas that have low connectivity.
• Integrate your payment system with your CRM and invoicing tools.
• Teach your workers how to process payments and invoices.
• Set up automated invoices and receipts.
• Design clear refund and cancellation policies.
• Implement real-time payment notifications.
• Test your payment workflow before using it with customers.
• Monitor your chargeback rate, declines, and other metrics in order to optimize your payment processes as needed.

Final Thoughts

As a field service business, you can’t afford to treat mobile payment processing like it’s optional. Customers expect to pay when services are rendered, and submitting a payment shouldn’t be difficult. Plus, immediate payment means your business gets the cash flow it needs to remain operational.

Whether you’re looking for tap-to-pay, mobile readers, payment links, or virtual terminals, there are many options available that you can use. By carefully considering what features you need and each processor’s benefits, you can find a setup that works for your company’s goals.

Check out PayCompass today to learn more about your mobile payments for small businesses.