Why Your Contracting Business Should Accept Card Payments
By Industry Partner Truss
Despite the rise of modern payment systems, many construction businesses continue to shy away from accepting card payments. This article will delve into the reasons why general contractors might be hesitant to offer card payment options and explore how these challenges can be overcome to unlock the benefits of more
efficient payment methods.
How Are Contractors Currently Accepting Payments?
Imagine paying for your daily expenses like gas and groceries using cash or checks. It seems almost unthinkable in today’s world, where digital payments and credit cards dominate. However, many contractors and small businesses still rely heavily on checks for their transactions. In fact, a significant portion of business-to-business payments is still made by check, despite the fact that checks are less secure and less efficient than newer payment methods. So, why do construction businesses often avoid card payments?
The Challenges of Accepting Card Payments
There are several reasons contractors might be reluctant to accept credit card payments. Some are wary of change, while others base their decisions on outdated information or misconceptions about credit card payments. Here are a few common concerns:
Cost
Contractors often operate on tight budgets and slim profit margins, so they’re understandably cautious about any additional expenses, such as merchant fees associated with credit card transactions. However, when you crunch the numbers, you may find that credit card payments are more affordable than you think, especially when considering the hidden costs of checks. With a payment processor like Truss, contractors can now accept credit card payments at no cost to themselves. Truss allows customers to choose between paying for free via ACH bank transfer or using a credit card. If they opt for the latter, you can pass the processing fee on to the customer—meaning no additional costs for you.
Setup Hassles
Using checks or cash doesn’t require any setup—it’s straightforward and familiar. Accepting credit cards, on the other hand, might seem like an administrative headache. However, Truss simplifies the process with quick and free setup. Plus, Truss integrates seamlessly with popular accounting software, making the transition smoother and more convenient.
Security Concerns
Some contractors mistakenly believe that online payments are less secure than cash or checks. While cash and checks are tangible, they are also more prone to fraud.
For instance, reports of check fraud have more than doubled in some regions between 2021 and 2022. In contrast, credit card transactions through Truss are highly secure, ensuring robust protection and encryption for your transactions. By accepting card payments, you offer your clients greater security than checks could ever provide.
The Benefits of Accepting Cards
Changing established practices can be challenging, but accepting credit cards for construction payments offers numerous advantages that can significantly benefit your business.
Faster Payments
Cash flow management is a major challenge in the construction industry, where expenses can accumulate quickly. Payment delays can hinder your ability to pay bills, hire labor, and keep projects on schedule. Check payments are inherently slow due to the time required for printing, signing, mailing, and bank clearance. It could take up to two weeks before funds from a check are available in your account.
Truss offers a faster, easier way to get paid. When clients pay through Truss—whether by ACH or credit card—you can access your funds instantly, ensuring smoother operations.
Client Preference
Construction companies work hard to deliver value to their clients, and this commitment should extend to invoicing and payment options. Many clients prefer the convenience and security of digital payments over checks. By offering both ACH and credit card options through Truss, contractors can cater to these preferences, enhancing customer satisfaction. Truss even supports mobile credit card processing, allowing clients to pay from anywhere, at any time.
Enhanced Efficiency and Easier Bookkeeping
When clients pay by card through Truss, the payment is automatically marked as paid in your QuickBooks Online account, eliminating the need for manual entry and reducing the risk of errors. This streamlining of payables and receivables tasks frees up your office staff to focus on more valuable activities, rather than being bogged down by tedious, repetitive tasks.
Your Contracting Business Should Accept Credit Cards
Checks are becoming a relic of the past—expensive, time-consuming, and susceptible to security risks. Yet many construction companies hesitate to accept credit card payments due to concerns about costs or the complexity of setup.
With Truss, contractors can now offer their clients the choice to pay via ACH or credit card, at no cost to the contractor. Setup is simple and free, and Truss integrates with QuickBooks Online for greater efficiency and streamlined bookkeeping. Accepting card payments with Truss allows contractors to access funds instantly, eliminating the hassle of collecting and depositing checks.
Start accepting card payments for your contracting business today with Truss. Visit trusspayments.com to learn more.
NARI members receive 25,000 ($250 value) bonus points when signing up for Truss. Book a free demo to claim your exclusive NARI member offer here.
Companies are subject to an approval process by Truss. Bonus points will be applied once the referred client spends $5,000 or more on their Truss charge card within 60 days of registering.
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*Truss is a financial technology company, not a bank. Banking services provided by Thread Bank; Member FDIC. The Truss Visa® Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted.
Your deposits qualify for up to a maximum of $3,000,000* in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://go.thread.bank/sweepdisclosure and a list of program banks at https://go.thread.bank/programbanks. Please contact [email protected] with questions on the sweep program
| 10/3/2024 9:21:15 AM |
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