What is classified as a future service in payment processing?

In payment processing, a future service refers to scenarios where the transaction involves a commitment for a service or product that will be delivered at a later date rather than immediately upon payment. This is characteristic of sales where the complete product is not delivered immediately, as the payment typically secures the transaction for a future date when the service or product will be rendered.

For instance, if a customer orders a custom-made item or books a service that will occur on a future date, the payment might be processed at the point of sale, but the fulfillment of that order takes place later. This type of transaction requires consideration of future delivery and scheduling, which sets it apart from transactions where the customer receives the product or service right away.

On the other hand, transactions involving instant deliveries at the point of sale represent immediate services and goods that don’t qualify as future services. Transactions with cash only do not necessarily imply a delay in service and apply more generally to the method of payment used. Similarly, services provided over the phone do not inherently define a future service, as they can also result in immediate execution.