Paying with credit cards is the norm for many people nowadays, but contracting business owners tend to steer clear of accepting them. This may seem like a safe choice, since there are fees associated with accepting card payments, but not accepting credit and debit cards may actually be costing you business.
Accommodating your customers payment options removes objections
In the past, we've talked about selling, and giving your customer everything they need to make a decision. Method of payment is another decision they have to make, and by accepting credit and debit cards, you’re making it as easy as possible for your customer to take the action you want them to take - in this case, paying you!
Paying with a card is “friction-less” spending
It’s often easier for people to spend more money when paying with a card because they don’t feel the same effects of paying a large amount with a card as with cash or check. Someone may spend more with their credit card because of the benefits offered, like cash back, points, or rewards for certain types of transactions. If there are additional benefits to using their card, it’s likely they’ll think less about bigger purchases.
So, how do you account for the fees?
Even though accepting credit cards has clear benefits for both you and your customers, you may be hesitant to start. The cost of fees may seem too high and, in some states, it’s illegal to charge a credit card transaction fee, but that doesn’t mean you have to avoid accepting cards altogether. By building fees into your original pricing and overhead costs, you can easily cover those fees.
Let’s say you currently charge $40 per hour for your labor. If you increased that labor charge by just $1.50 to $41.50, the cost of a 3% credit card acceptance fee would be completely covered.
Not all of your customers will want to pay with a card, though, so what happens then? An easy solution is offering a 3% (or the percentage of fees you’re paying) discount for customers paying by check or cash.
Getting started is easy!
There are a variety of options out there for accepting credit and debit card payments. The key is figuring out which one works best for you. Recently, we rolled out credit card processing in Estimate Rocket using Stripe, so you can easily accept payments online and have all of your invoice and payment info in one place! If you’re already using Estimate Rocket, check out this guide and this video about getting set up. If you’re not using Estimate Rocket yet, start your free 30-day trial here!