Service Businesses

Approximately 9 in 10 U.S. consumers carry at least one payment card—such as MasterCard—for convenience and flexibility, or to earn benefits from special card programs. Many service providers in the following industries now accept cards—offering consumers an alternative to cash and checks for initial and recurring payments.

• Cable/Satellite TV and Radio
• Child Care
• Home Cleaning
• Home Security
• Insurance
• Landscaping
• Magazines and Newspapers
• Property Management
• Telecommunications
• Utilities

The benefits of card acceptance to service providers will vary according to current payment and/or collection needs.

Credit and debit card acceptance allows businesses to automate payments via the Internet, automated telephone voice response units, and self-service kiosks. Card transactions are often completed more quickly and efficiently than transactions that involve making change, filling out forms, or processing checks.

Automated transactions also save money by reducing customer traffic in field offices with high labor, real estate, and overhead costs. In addition, payment by check or cash—which is normally counted several times before reaching your depository bank—may create additional expenses, such as armored car services, data entry costs, and bank deposit or lockbox fees.

The electronic payment methods available with cards can result in rapid deposit of funds into your account and improved cash flow. In addition, card payments made by telephone or in a face-to-face environment usually eliminate "mail float"—the interest foregone while checks are in the mail.

Card transactions reduce the volume of checks returned for "nonsufficient funds," as well as associated fees, penalties, and collection costs. Card acceptance also cuts down on redeposit fees and the cost of processing additional transactions.

Payment card acceptance boosts customer service by offering convenience and flexibility. Consumers expect card acceptance by a wide range of service providers—including utilities, cable and satellite TV companies, insurance firms, nonprofits, newspaper/magazine subscriptions, and home security monitoring. The efficiency of electronic payments can enable a service business to match the level of customer care provided by traditional face-to-face acceptors. And in many cases, the benefits of acceptance can partially or fully offset card transaction costs.

• Acquirer Referrals: MasterCard provides referrals to acquirers (i.e., merchant banks) to help your business begin accepting cards.
• Competitive Acquirer Bids: Receive competitive bids from acquirers with MasterCard Request for Proposal (RFP) guidelines.
• Recurring Payments: MasterCard makes recurring payments easy for you and your customers.
• Automatic Billing Updater: You can manage your recurring payments program with no interruptions in customer payments. This service notifies you of changes to cardholder data (e.g. expiration dates).
• Service Industries Incentive Program: The MasterCard Service Industries Incentive Program (SIIP) for cable, insurance, telecommunications and utilities service companies provides a lower interchange rate on qualified recurring transactions.
• Utility Industry Program: The MasterCard Utility Industry Program provides utilities with an interchange rate on qualified one-time and recurring transactions.
• Electronic Payment Processing Network: MasterCard RPPS® provides a single connection for senders and receivers of electronic payments throughout the United States—including consumer service providers, billers, and lockbox service providers. Processing tens of millions of transactions reliably and securely every month, MasterCard RPPS reaches virtually every electronic payments sender domestically that delivers online bill payment services.
  For more information, contact rpps_sales@mastercard.com.
• Co-branding: Build customer loyalty by combining your logo with the MasterCard Brand Mark on a MasterCard card.

In addition to managing the financial settlement and authorization systems, MasterCard administers the systems’ operating rules and regulations, develops programs to open new merchant segments, creates new payment programs and services, and promotes and advertises the MasterCard Brands.

Learn How to Start Accepting MasterCard Cards for Payment
Register to receive referrals to acquirers (i.e. merchant banks) that can help you begin accepting cards. Register for the MasterCard Acquirer Referral Program
Find the acquirer that best meets your needs and receive more competitive bids. Read the MasterCard Request-for-Proposal Guidelines
Learn About Recurring Payments With MasterCard
Learn About the MasterCard Service Industries Incentive Program for Cable, Insurance, Telecommunications and Utilities Service Providers Learn About the MasterCard Utility Industry Program Download the Automatic Billing Updater Brochure Now Download the Recurring Payments Cancellation Service Brochure Now Learn More About MasterCard RPPS Learn About MasterCard Business Programs Learn About Co-Branding With MasterCard