In the past, it was typical for construction companies only to accept cash or check payments from clients. Today, improved technologies and resources make credit card and debit card payments an expected option for customers.
According to the 2016 U.S. Consumer Payment Study, credit cards took the top spot in customers’ preferred way to pay, with debit cards coming in second.
With mobile payments becoming more accessible, and the growing popularity of online banking and credit statements, it makes sense that 40% of the population surveyed revealed they prefer to pay with a credit card.
So what does this mean for improving your business when it comes to invoicing for construction jobs?
Being flexible with your accepted forms of payment can not only grow your customer satisfaction but also improve your cash flow.
Here’s what else you should know:
Accepting Credit Cards Benefits Your Customers
Customers want the ability to pay invoices quickly and easily, they want a record of their payment, and they want to be able to pay securely.
There are multiple ways to have customers pay via credit card to secure a faster process for getting paid. Offering credit card payments in the field is one.
Whether you decide to collect payment with a mobile credit card scanner for your tech to use at the job site, or email a digital invoice that includes a “Pay Now” feature, overall, clients will find it more efficient to pay via card rather than write a check or hand you cash. Plus, InvoiceASAP’s invoicing app functions with your mobile team’s existing technology.
Another reason customers prefer credit card payments is that it gives them confidence about your company and about their payment itself. Showing customers you accept credit card payments, helps your small business appear more legitimate and trustworthy.
Customers may also feel encouraged to use credit cards because of the protections and customer support they provide. It’s comforting for clients to have access to a digital receipt, especially when a credit card company can also view the transaction.
How Accepting Credit Cards Benefits Your Business
In terms of how accepting payments is beneficial to your contractor business, the primary advantage is how quickly you’ll see invoices getting paid. Credit card payments are processed easily and quickly while keeping transaction fees low. You can even pass transaction fees on to your customer, which is a common practice.
Access and flexibility with payment methods means customers will pay sooner and money will hit your bank account faster. When your tech can take a payment at the job site, or when a customer can enter their credit card information on a digital invoice following the job, the payment will be processed much faster.
If you’re waiting days or weeks for checks to come in the mail and then clear, or handling excessive amounts of cash, you should absolutely be incorporating a credit card option for invoice payments.
Another key benefit to credit card payments is the ability to know instantly whether the payment has been correctly processed. You can begin new jobs more quickly, without having to wait and see if the expected payment from your previous job went through.
Additionally, if your business offers clients the option to pay in multiple installments, having a credit card option connected to recurring invoices can automate the process and help guarantee those payments come in on schedule.
Available Tools for Managing Credit Card Payments
A payment management system designed specifically for your construction business is an excellent resource. InvoiceASAP offers services – beyond just accepting payments in the field – that will make it easier to manage and grow your business.
For example, with InvoiceASAP’s invoicing platform, customers are easily able to make payments directly from the digital invoice. There’s no phone call to make or additional websites to navigate, which simplifies the payment process and gets invoices paid out to you faster.
For your regular clients, credit card payments from previous jobs can also be stored for the future. With InvoiceASAP’s Card on File tool, you can save your clients’ card information, allowing customers to submit a new payment immediately.
Additionally, the online credit card payment can be tracked and viewed easily with the A/R Management tool.
Not only will you see all of your invoices in one place, but you can sort unpaid invoices from paid invoices and view payment details in real-time. This platform allows you to look-up any needed information if questions arise in the future.
Overall, giving your clients the option to pay with credit cards opens up new opportunities to grow your business and secure payments quickly.
Consider utilizing a mobile invoicing service such as InvoiceASAP to guarantee your credit card payments are processed efficiently and are effortless for you and your customers. Try InvoiceASAP today with a FREE account.