|July 12th, 2019|
In today’s world, online retail business transactions happen online in bulk. The very fact makes it important for every construction business to set up an online payment system so that receiving card payments becomes user-friendly and firm in terms of security. Pertaining to the huge success and endless possibilities that come with credit card processing services, more number of businesses are preferring it over cash and checks. No matter you run an international or local business the best payment option is via card payments only.
Construction businesses are no exception to it. Even they need the best merchant account services to facilitate fast and secure payments. You may have myriad of things to take care of but method you choose to accept payments can determine your success to a great extent. Opening a merchant account for enabling yourselves to accept card payments is a must-do for construction and general contractors.
Why It Is So Important To Have Best Merchant Services?
Knowing the importance would help you take an educated decision. Here goes the list of important reasons for every construction business to consider:
1. Ease-to-use and reducing the time consumed in payment processing- Construction companies perform well with an improved cash flow. Credit card acceptance enables your company to take the fast payments i.e. card payments. You don’t have to wait for payment to come before starting a new project. Improved cash flow keeps you in a strong financial position. You will not have to wait any longer for checks to be deposited and cleared. There would be no bounce checks and money will be almost immediately deposited in your account. You may have to buy raw material or pay the wages to the workers deployed at a site.
Also, it is possible for you to collect recurring payments through viable payment processing services for longer projects.
2. Convenient for customers- Construction and renovation projects see fat payments and expecting clients to carry cash for large amounts is just not right. Allow them to make payments in advance or after completion of project right from the comfort of their home. Knowing they can pay your company with a few clicks is extremely delightful for them. Shun the need of calling client at your office for dropping an envelope with cash or a check and win clients’ heart.
3. Build customer’s trust in your company- Those who deal only in cash are not considered to be genuine. If you have a proper website and you accept payments online, this makes a good impression of your business on prospect customers. If you want your business to be taken seriously and win customers confidence there is no better way than to provide them plethora of advanced payment options. Credit card payments are considered to be the safest of all as their processing provides consumer protection with paper trail involved.
4. Keep your business safe of fraudulent customers- It is not always businesses that make fool of customers but there are customers who are fake and they do frauds to ditch the due payments towards the construction company. Shield your business against cases of bounce checks and collect the funds from clients without any hassle. Card payments are not possible in absence of proper identification that keeps clients safe from cheating.
Common Myths About Accepting Card Payments
Merchants who have not yet started accepting card payments and also merchant account opening is not in process for them, may have some concerns. These need a proper redressal so that they understand that those problems do not exist in real world.
1. It ultimately adds to the cost. While the whole business fraternity earning big fat profits with the help of fast and secure payment processing, you think that it cuts your revenue. It is however true that credit card processing company charges 2 to 4 percent fee for each transaction but businesses can charge this fee from the customers by including it in the margin. Also, you should not forget that being able to collect card payments you attract much more business than before. This actually creates great business and profit opportunities for you in long run.
2. Chargebacks make it a risky affair. It is true that chargebacks from clients can ruin your business image and can cost you heavy. But chances of this can be eliminated by documenting the transaction with proper documents and carrying out necessary quality assurance checks with the clients’ approval. Have them sign the paper with a statement that the work is finished to their satisfaction.
How To Get Started With A Merchant Account?
You need to follow the undermentioned steps to start with payment processing for proffering the best payment option to your clients:
1. Find a merchant account provider- The very first step you should take for setup of merchant account is finding some reputed payment processor. While you carry out the quest for a processing company, ensure that their team has got the relevant experience and holds the expertise as your industry is a high risk industry. Considering the large number of processors in the industry it seems to be highly intimidating to find a genuine merchant account provider, especially if it is your first time. Availing expertise of professionals can reduce the hassles in your way to open a merchant account. They work closely with you to understand your business and its payment processing needs. Only after matching your requirements with payment processor’s expertise and experience you are made to sign an agreement with them.
2. Jolt down your company’s transaction amount and volume- You may already know there is no provision of lump-sum payments and merchants need to pay the processing companies for each transaction. Rates per transaction are decided on the basis of ticket size and expected volumes of the business. It is highly significant to list down the invoice ticket size and total amount that company processes on a monthly basis.
3. Don’t go for longer contract periods- Your priority should be to avail payment processing services that are free of any contracts or go for monthly contract service. A payment processing agreement generally lasts for a period of 3 years. As these contracts come with high contract breaching fee you should be keen to avoid lengthy contracts. This gives freedom to you as a business to find a new processing partner for better compatibility.
4. Select interchange-plus pricing model- This pricing model is recommended by the industry experts to ditch the regular one offered by processing companies, which is known as the qualified rate model. This model provides benefits only to your processing partner at your expense.
5. Prefer level 2 and 3 processing- At these transaction levels more information is required and hence, it is able to render more security to ensure merchants that the transaction are legit.
Tips To Provide Successful Online Payment Options:
Running a construction business itself establishes you as a hard-working and ambitious person but getting paid on time should not be a tiresome task. Eliminate the delays in the payments and make reminder calls to clients for payments with fast and secure online payments.