by Matt Rej
WorkWave is a popular field service management software that’s trusted by over 375,000+ users across industries like pest control, lawn care, security, and commercial cleaning. The platform has everything from CRMs to time-tracking tools, routing, schedule management, payroll, ERP software, and more.
But one popular feature that’s often misunderstood by users is WorkWave Payments, its integrated solution for credit card processing and payment acceptance.
Whether you’re currently using WorkWave Payments and just want more insights on what’s happening behind the scenes or you’re evaluating WorkWave but not sure how it works, I’ll explain everything you need to know below.
Key Takeaways:
- WorkWave Payments is the exclusive integrated processing option for WorkWave.
- You can still use WorkWave with any processor (it just won’t be integrated).
- WorkWave Payments operates as a PayFac with a sub-merchant model.
- Worldpay is the default processor on the backend, and Adyen is an optional alternative for qualifying businesses.
WorkWave Payments is the Only Integrated Solution For WorkWave Software
First and foremost, if you want your payment system integrated in WorkWave, your only option is WorkWave Payments.
Historically, WorkWave supported other third-party processors and gateways that could integrate through an API to deliver the same benefits. But the software provider stopped supporting third-party processing solutions shortly after WorkWave Payments was launched back in 2019.
In press releases and even current marketing materials, WorkWave claims that this helps keep their costs lower and allows them to pass those savings to their customers.
But make no mistake. This decision was made solely because it was more profitable for WorkWave. By becoming the exclusive integrated processing option of their own software, it allows them to set rates without competition, which always translates to higher costs for merchants.
But You’re Not Forced to Use WorkWave Payments
Here’s where lots of users get confused. While WorkWave Payments is the exclusive integrated provider for WorkWave software, you can still use WorkWave and keep your existing processor.
The difference is that your payment processing solution won’t be integrated with the software.
Lots of businesses prefer the integrated option because it simplifies processes, consolidates data, and eliminates manual reconciliation.
But if you’re already set up with a processor you like and you’re getting good rates, switching to WorkWave Payments typically isn’t necessary.
You can still get all the benefits of WorkWave software, and keep your credit card processing separate.
WorkWave Doesn’t Actually Process Your Transactions
WorkWave Payments is not a traditional merchant account. It’s a PayFac model, where you operate as a sub-merchant of WorkWave.
It’s all clearly spelled out in the merchant agreement you’re signing with WorkWave. Here’s what’s actually happening behind the scenes:
- You’re entering into a “sub-merchant agreement” with WorkWave.
- This means WorkWave has a direct agreement with the acquiring bank.
- And they process transactions on your behalf.
This is a clear PayFac (payment facilitator) structure being used within a branded integrated processing solution.
Worldpay is the Backend Processor
A closer look at the WorkWave Payments contract makes it clear that Worldpay is the acquiring bank that’s actually processing the transactions on behalf of WorkWave.
So whenever you submit a transaction, it’s actually getting processed by Worldpay.
This is important for several reasons:
- All of Worldpay’s processing fees and additional charges will be passed through to you.
- WorkWave still needs to profit from the service they’re providing.
- This ultimately means your rates will be inflated to ensure that there’s enough margin for both WorkWave and Worldpay.
Remember what I said earlier about WorkWave claiming that their exclusivity would save you money? That’s simply not true.
While integrated processing in general lacks competition (you may normally only have three or four options compared to hundreds), having only a single option can really hurt you. It becomes much harder to negotiate when Worldpay raises rates and adds new fees.
It’s also worth noting that Worldpay has been acquired by Global Payments. I just published an article explaining what Worldpay merchants need to know about the merger, and this 100% applies to businesses using WorkWave Payments (because Worldpay is technically your backend processor).
I’m fully expecting Worldpay’s rates to increase within the next 6-18 months. So this will ultimately have a trickle-down effect on your integrated processing via WorkWave.
Adyen is an Alternative Option
While Worldpay is the default acquirer on the backend for a WorkWave Payments sub-merchant agreement, certain businesses do have an alternative choice.
Appendix 4 of the latest sub merchant terms and services from WorkWave outlines transaction processing services from Adyen.
I’ve noticed that tons of WorkWave customers have questions about this option, and there’s lots of confusion about the way this agreement is written. So let me clear it up:
- Appendix 4 states that the sub-merchant is entering a “direct agreement” with Adyen.
- This language is confusing because normally the term “direct agreement” would imply that the PayFac model is bypassed, but that’s not the case here.
- WorkWave is still your “authorized representative towards Adyen” and you’re still bound by the sub-merchant structure.
The change in phrasing for this part of the contract is largely due to how Adyen is set up.
WorkWave still controls the relationship. But Workwave is considered a “marketplace” under Adyen’s terms. So instead of Worldpay as the acquirer and Fifth Third Bank as the sponsor, Adyen replaces both of these roles.
So despite the language early in Appendix 4 saying you have a “direct agreement” with Adyen, you really don’t, and it’s somewhat misleading. This is not the same as having your own direct merchant account with Adyen. It’s still a PayFac structure with WorkWave.
Which Option is Better?
With PayFacs, rates are always going to be slightly higher than having a direct agreement with a processor because there are more entities involved with the transaction.
And the fact that WorkWave has a stranglehold on its software by also acting as the sole integrated payment option multiplies this.
But for most businesses, Adyen will be the better option. Here’s why:
- Adyen has some of the best payment technology on the market right now.
- Their rates are usually cheaper than Worldpay.
- They don’t have nearly as many “hidden” fees.
- And Adyen doesn’t raise rates as often as Worldpay.
- Plus, Worldpay’s recent merger with Global Payments further complicates things and almost guarantees a rate hike in the near future.
So even though it’s a PayFac and sub-merchant agreement whether you go with Worldpay or Adyen (meaning you won’t ever get rock-bottom rates from either provider), I still think Adyen is going to be the cheapest.
But Not Every Business Can Qualify for Adyen’s Processing
WorkWave’s sub-merchant agreement is pretty vague when it comes to how you’re set up with either processor. But if you look closely at the language, it appears that it’s much harder to be approved for Adyen.
Here’s how I came to this conclusion.
First, the opening of Appendix 4 is very passive, stating “If sub-merchant is approved by Adyen…” which is very different from the direct language used earlier on for Worldpay.
This instantly suggests to me that Worldpay is the default, and Adyen is discretionary.
Adyen also has tighter risk controls, including a provision that merchants can’t process payments for any product or service that will be delivered more than 12 months from the transaction date. No such restriction exists in the Worldpay section.
Section 1.C of Appendix 4 for Adyen says that there is “additional due diligence and risk assessment” for the sub-merchant. And then goes on to discuss the potential of reserve requirements.
So while the contract doesn’t specifically cite particular industries or processing thresholds, it’s clear that Adyen has a stricter underwriting process. Based on my experience, this usually means that high-volume and low-risk businesses have a better chance of being approved.
Should You Switch?
Switching credit card processors rarely makes sense for businesses. So if you’re already set up, 95% of the time you should just keep everything the same.
So, if you’re using:
- WorkWave Payments with Worldpay, keep it.
- WorkWave Payments and Adyen, don’t switch.
- A third-party processor that doesn’t integrate with WorkWave, keep everything separate.
For those of you who don’t have a payment processor yet and you’re positive that you want to use integrated processing with WorkWave, push for Adyen over Worldpay. While there might be a stricter underwriting process, this will likely be the cheapest option for you over the long run.
Whatever decision you made when you first started is what you should stick with. If your costs are rising, you can still negotiate directly with WorkWave and/or your existing processor to get better terms.