ServiceTitan is one of the most impressive success stories in the SaaS space. What started as a software for plumbers, electricians, and HVAC businesses has grown into a publicly traded company that serves 25+ different verticals.
They’ve become the go-to software for both commercial and residential trades.
From field-service management to dispatching, job costing, CRM, work order management, and dozens of other capabilities, ServiceTitan truly does it all.
It’s easy to overlook certain functions when you’re looking at ServiceTitan’s impressive feature list. And integrated payment processing is one of those features that many ServiceTitan customers use but few truly understand.
So whether you’re a current ServiceTitan user exploring the payment processing options, brand new to ServiceTitan, or you’re already using ServiceTitan Payments and trying to make sense of your fees, I’ll explain everything you need to know below.
Our Insider Take on ServiceTitan Payments
First and foremost, it’s important for you to understand that ServiceTitan’s integrated payment processing is handled by third-party providers (not directly by ServiceTitan).
This is extremely common in the SaaS space. ServiceTitan handles the software itself and all of the frontend interfaces, and they provide APIs for a select number of payment processors to integrate with on the backend.
Here’s what you need to know:
- ServiceTitan integrates with TSYS, NMI, and Adyen for payment processing.
- The software itself is excellent, but payment processing rates are often higher than necessary (which isn’t ServiceTitan’s fault).
- While integrated processing typically commands premium rates, that doesn’t mean you have to keep overpaying.
- You can negotiate better terms without switching software or processors.
Overall, I genuinely think ServiceTitan is a great product. It’s no coincidence that the software is growing so rapidly.
Our clients using ServiceTitan love it. But like most contractors we work with, they’re just a bit confused about how the payment processing aspect works. And that confusion often leads to overpaying.
ServiceTitan Integrated Payment Processing Options
Again, ServiceTitan is not a payment processor. Instead, they partner with third-party providers to provide integrated payment acceptance within their platform. This means that when you accept a credit card payment through ServiceTitan, the actual transaction is being handled by a separate provider on the backend.
Based on our experience working with businesses using ServiceTitan and documentation directly from ServiceTitan itself, there are three main payment processing options available.
Each one is a bit different, and the path you take will definitely impact how much you’re paying. Let’s review your options:
TSYS
90% of our clients using ServiceTitan have TSYS as their backend processor. It also appears that TSYS is the primary processor that powers the main ServiceTitan Payments offering.
So if you go directly through ServiceTitan for payment processing, it’s highly likely that TSYS is going to be your processor.
TSYS is a massive payments provider (and it’s now part of the Global Payments umbrella). They process payments for millions of merchants worldwide and have robust technology for both card-present and card-not-present transactions.
Our biggest issue with TSYS is that they’re notorious for adding unnecessary fees, frequent rate hikes, and inflated markups to merchant accounts (similar to all subsidiaries of Global Payments). This is especially true for integrated processing solutions, where they have more “excuses” for certain fees.
Check out our TSYS review for more insights and a complete breakdown of fees to watch out for.
NMI
NMI (Network Merchants Inc.) is primarily a gateway provider. Not a payment processor.
The gateway is what’s used to transmit payment information between the software (in this case, ServiceTitan) and the payment processor.
Here’s where it gets a little complex. NMI and TSYS have a long-standing strategic partnership. Which means if you’re using NMI’s gateway for ServiceTitan, your payments are likely still being processed by TSYS on the backend.
NMI provides the gateway infrastructure, but TSYS handles the actual processing in most cases.
This isn’t necessarily a bad thing. You just need to recognize that you’re not completely separate from TSYS here. You’re essentially using NMI’s technology with TSYS processing underneath.
It’s worth noting that NMI does integrate with other processors, like Elavon, Chase Payments, Worldpay, and more. But we honestly haven’t seen this setup with anyone other than TSYS via ServiceTitan.
Adyen
Adyen is different from the other two options because they provide both gateway and processing functionality under one roof.
They’re a fully linked processor with all of their own infrastructure (not just a middleware connecting you to another processor).
Adyen is known for being more transparent with pricing compared to other providers. And they actually have some of the best payment technology on the market today.
I’m usually pretty tough on processors, but Adyen is one of the few options that I honestly like.
That said, they do charge some extra fees on certain accounts when they can get away with it. But we’ve successfully negotiated rates for all of our clients using Adyen, and the support team is generally open to making concessions to keep your business.
Adyen rarely increases rates, and they’re even more willing to offer favorable terms as your volume increases. As far as iterating with ServiceTitan, the entire setup is seamless.
Our Adyen review has a more in-depth breakdown.
ServiceTitan Payment Processing Rates and Fees
ServiceTitan offers custom pricing for each business that wants to accept payments through the platform. Your rates will mostly be based on factors like processing volume, technology requirements, transaction environments, and risk.
Regardless of which integrated processor you’re using, you need to understand the breakdown of your payment processing costs. There are three main components:
- Interchange Rate — Non-negotiable fees set by the card networks (Visa, Mastercard, Amex, and Discover) charged on each transaction.
- Assessment Fees — Also set by the card networks. Non-negotiable.
- Processor Markup — This is what your processor charges for handling the transactions. This is 100% negotiable.
The key here is making sure you’re on an interchange-plus pricing structure.
With this model, you pay the wholesale rate (interchange + assessments) plus a transparent markup to your processor (TSYS/NMI/Adyen).
Do NOT accept a flat-rate processing deal. Despite its simplicity, it’s a guarantee that you’re going to overpay to accept credit cards through ServiceTitan.
What’s a Fair Markup for Integrated Processing?
For integrated payment processing through ServiceTitan, we typically see markups between 0.25% to 0.75%.
- 0.15% – 0.25%: Excellent rate for integrated processing.
- 0.25% – 0.40%: Still reasonable, but maybe room for negotiation if you process a high volume.
- 0.40% – 0.55%: The higher end of what we prefer to see, but not a rip-off.
- 0.55% – 0.75%: Higher than necessary and room for negotiation.
- Above 0.75%: Way too expensive and needs immediate attention.
For TSYS and Adyen, you should be able to get your rates somewhere around that 0.50% markup range.
We know for a fact that Adyen offers markups as low as 0.25% over interchange (though this often requires you to process millions per month).
Fees to Watch Out For
Beyond the markup you pay for each transaction, it’s common for payment processors to add other fees to your monthly statement.
Some are legit service-based charges (which you’ll see from Adyen). But others are bogus fees that are designed specifically to inflate your processor’s markup (TSYS does this).
Examples include:
- Settlement Funding Fees
- Non-EMV Risk Fees
- Risk Assessment Fees
- Infrastructure Upgrade Fees
- Analytics Reputation Management Fees
- Transaction Network Access Fees
- Global VPN Fees
These are some of the most common ones we’ve seen from TSYS.
They’re easy to overlook when buried amongst dozens or even hundreds of other line items on your statement. But they can easily be costing you thousands of extra dollars every month.
So even if you negotiate a really good discount rate per transaction, that processor markup gets inflated if they’re getting away with charging you other fees.
Other Red Flags
There are two other things you need to keep an eye out for to ensure you’re not being ripped off:
- Assessment padding
- Massive rate hikes
To be clear, neither of these has anything to do with ServiceTitan. They’d be coming directly from your payment processor, and we’ve caught TSYS doing this on multiple occasions (not so much Adyen).
Assessment padding is when your processor passes through assessment fees from the card networks at a higher rate. It’s impossible to detect unless you know what those assessment rates are supposed to be (which 99% of businesses don’t).
Another sign that your processor is doing something shady is if they drastically increase your rates and/or frequently raise your rates.
For example, we had a TSYS client that was paying a 0.50% discount rate. Then TSYS started charging them 1.15%.
While small rate increases are normal (a few basis points every few years), doubling rates overnight is not.
So if your processor is doing any of these things, it means you’re overpaying and need to have your account audited to identify savings opportunities.
Pros and Cons of Integrated Payment Processing With ServiceTitan
Overall, there are lots of positives about using ServiceTitan to process your payments. But there are definitely some downsides that can’t be ignored (even if they aren’t directly ServiceTitan’s fault).
Pros
- A truly integrated payment processing solution that’s seamlessly offered within ServiceTitan’s software.
- Your technicians can accept payments in the field, the office can process payments over the phone, and customers can pay online.
- Payments can be synced with jobs, invoices, accounting, etc.
- Tap-to-pay, contactless payments, and mobile payments are supported.
- You can accept credit cards, debit cards, ACH transfers, and mobile checks through the same integrated system.
- Interchange-plus pricing is available (other software may try to force you into flat-rate contracts).
- Your processing rates are 100% negotiable.
Cons
- Limited competition with only a few processing options reduces your negotiating leverage.
- Layers of providers (like NMI gateway + TSYS processing + ServiceTitan software) can add complexity and cause your rates to go up, as each provider needs their cut.
- If you’re using TSYS (which most ServiceTitan customers are), you’re dealing with a processor known for aggressive pricing, hidden charges, and some unethical practices.
- Integrated processing is always going to command a premium price compared to standalone processing.
- Expect your rates to rise over time and new fees to appear on your processing statements.
How to Save Money on ServiceTitan Payment Processing
If you’re using ServiceTitan with integrated payments, there’s a good chance you’re paying more than you need to be. Fortunately, there’s a lot you can do to lower your rates and potentially save thousands of dollars every month.
Here’s how to approach this:
Step 1 – Audit Your Statements
Start by looking at your last 3-6 months of statements. Calculate your effective rate (total processing cost divided by total volume) to see if your rate is changing over time.
Look for any bogus fees with vague names that can’t be tied to any actual service, new charges that have been added since you opened your account, and anything else that you don’t quite understand.
Many of these extra fees can be reduced or potentially removed from your statement altogether (and retroactively refunded).
Step 2 – Contact Your Processor Directly
Don’t bother calling ServiceTitan when it comes to your credit card processing questions. You need to call TSYS or Adyen directly (or whoever is processing your payments on the backend).
Open up this line of communication by bringing their attention to what you found in your audit.
They’ll try to justify the reason for certain fees or rate increases. But make it clear that you’re not going to put up with this type of treatment.
Step 3 – Demand Interchange-Plus Pricing
If you’re on any type of flat-rate or tiered pricing structure, you need to be moved to interchange-plus ASAP. This is the only pricing model that gives you transparency into your actual costs and processor markup.
While it might seem simple, flat-rate processing is always more expensive.
Don’t get tricked into paying more than necessary just because it’s “easier to understand.”
Step 4 – Negotiate Your Markup to 0.50% or Lower
For integrated processing through ServiceTitan, aim to get your markup down to 0.50% or less. High-volume businesses can push for 0.40% or lower.
Remember, the markup is completely negotiable.
Your processor will tell you that “integrated processing costs more” and they’re not wrong. But trust me. They aren’t giving you their lowest possible rate. There is always still room for negotiation.
Step 5 – Don’t Switch Processors
If you’re not having luck negotiating your rates, it may seem like switching from TSYS to Adyen or Adyen to TSYS is a simple way to get lower rates. But it’s not.
We rarely recommend switching processors, especially through an integrated setup, because the cost savings are usually short-lived and the cost to switch may offset any savings.
Switching processors means reconfiguring your ServiceTitan integration, potential downtime during the transition, potential data loss, time spent training new staff on procedures, and potential early termination fees (especially with TSYS). It’s just not worth it.
You’re better off continuing to negotiate hard with your processor and not accepting their first “no” when you ask for a better rate. And if you’re struggling with this, our team here at MCC can help.
Final Thoughts on ServiceTitan
ServiceTitan honestly has exceptional software. I’m not going to try and poke holes in anything they’re doing over there because it’s all good stuff. The platform works, the integrations are seamless, and they help contractors run better businesses.
But their payment processing (like virtually all integrated processing solutions) tends to be more expensive than it should be.
This isn’t ServiceTitan’s fault. It’s just that the processors who have partnered with Servicetitan (particularly TSYS) don’t always have the best rates. And if you haven’t had your statements looked at by a professional, there’s a high probability that you’re overpaying.
Don’t accept this as inevitable. Your processing rates are 100% negotiable, and most ServiceTitan customers that we work with are overpaying by thousands or tens of thousands annually.
The good news is that you can pay less without switching software or providers. You just need to negotiate better terms with whoever is actually processing your payments.
Contact our team here at MCC for a free audit to find out how much you can save on ServiceTitan payment processing.