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Building a portfolio of Card Not Present service providers can be a lucrative endeavor, especially for those in the payment processing industry. This niche market includes businesses that typically process payments remotely, such as contractors, home inspectors, and lawn care services. Due to the nature of their operations, these businesses often face unique challenges and opportunities in payment processing.


Card Not Present transactions occur when the cardholder does not physically present the card at the point of sale. This is common in various service-based businesses like HVAC companies, home inspectors, and lawn care services. These businesses often process payments over the phone or through online platforms using virtual terminals.

Payment Methods

CNP businesses typically use one of the following methods to process payments:

  • Virtual Terminals: These are web-based interfaces where the business logs in to manually enter the card details and process the payment.
  • Mobile Processing Units: Devices or apps that allow businesses to accept payments on-site using a smartphone or tablet.
  • Credit Card Machines: Some businesses still use traditional machines, manually keying in card information for transactions.

Common Issues

  • High Interchange Costs: CNP transactions generally incur higher interchange fees due to the increased risk of fraud.
  • Manual Entry: Reliance on manual entry of card details can lead to errors and inefficiencies.
  • Lack of Integration: Many service providers lack integrated solutions that streamline payment processing and business operations.

To build a successful portfolio, you need to identify and target the right CNP service providers within your local community.

Service Providers

Potential clients include:

  • Contractors
  • Home Inspectors
  • Lawn Care Services
  • HVAC Companies
  • Garage Door Installers

Technology and Solutions for CNP Businesses

Offering the right technology and solutions can set you apart from competitors and provide significant value to your clients.

Virtual Terminals

A robust virtual terminal should offer features like:

  • Email Invoicing: Allowing businesses to send invoices directly to customers via email.
  • Text Invoicing: Enabling payment requests through SMS.
  • Saved Cardholder Information: For recurring payments and customer convenience.

Mobile Processing

Providing mobile processing units can help businesses accept payments on-site, reducing interchange costs and improving cash flow.

Payment Gateways

A payment gateway that integrates with the business's existing systems can streamline operations and enhance the overall payment experience.


Interchange costs are a significant factor in CNP transactions due to the higher risk of fraud.

Risk of Fraud

The absence of a physical card increases the likelihood of fraudulent transactions, leading to higher interchange fees.

Credit vs. Debit

CNP businesses often deal with higher average ticket sizes, making credit cards more prevalent than debit cards.

Average Ticket Size

The average transaction amount varies by business type. For example:

  • Lawn Care Services: Typically charge smaller, recurring amounts.
  • HVAC Companies: Often handle larger, one-time payments.

Prospecting and Selling

Successful prospecting and selling require a strategic approach tailored to the unique needs of CNP businesses.

Approaching Clients

  • Research: Understand the specific needs and challenges of each business.
  • Personalize: Tailor your pitch to highlight how your solutions address their pain points.
  • Build Trust: Establish credibility through testimonials, case studies, and proven results.

Offering Solutions

Present a comprehensive solution that includes not only cost savings but also enhanced efficiency and customer support.

Building Relationships

Long-term success depends on building and maintaining strong relationships with your clients. Provide ongoing support and regularly check in to address any issues.

Interchange Optimization for B2B Transactions

Many CNP service providers also engage in business-to-business (B2B) transactions, presenting additional opportunities for cost optimization.

Commercial vs. Residential

Understand the mix of commercial and residential clients to tailor your approach and solutions.

Cost Reduction Strategies

Implement strategies such as interchange optimization to reduce costs for B2B transactions.

Leveraging ISV Partnerships

Partnering with Independent Software Vendors (ISVs) can provide specialized solutions and long-term client retention.

Vertical Specific Solutions

Identify ISVs that cater to specific verticals, such as home inspectors or HVAC companies, and form partnerships to offer integrated solutions.

Long-Term Client Retention

Clients using specialized software are more likely to remain loyal, ensuring long-term revenue.