As a kid, you were probably taught to make a list of pros and cons for big decisions. As you consider growth steps for your business, we realize that taking credit card payments is a big decision that deserves careful consideration. To help you decide if the ease and convenience is worth the processing fees and potential risk, we’ve listed out some pros and cons below. If you can think of any other ones, we would love to talk with you about them.
PRO #1: Your Customers Want to Pay with a Credit Card
In some cases, offering customers the ability to pay with a credit card can be the difference between a job won or lost, or an invoice paid off or left unpaid. Credit cards can be a very convenient way for a customer to pay for emergency repairs, their dream yard, or even the peace of mind from a clean house. Customers often look for ways to use credit cards to receive rewards, get cash back, build credit, and even track their spending better. Making payments as easy and seamless as possible for your customers is actually a win-win for both your customers and your business.
PRO #2: Get Paid Faster
Credit card payments mean you can stop waiting for a check to come in the mail and then wait two to five more business days for the full amount of the check to clear. Credit card transactions are authorized in seconds and processed electronically, and then the payment is directly deposited into your account within one or two business days. You don’t even need to get in a car or lift a finger to make sure the money enters your bank account. A quick and efficient payment process means improved cash flow for your business and more money in your pockets over time.
PRO #3: Track Payments Easily
Credit card processing gives you an electronic history to review which payments have been received. Project 2 Payment has credit card processing and payment history conveniently integrated so that when you pull up your customer’s file or project information, you can see if there are any outstanding payments. Project 2 Payment even allows customers to securely save an encrypted preferred payment method to make future payments easier. With the Project 2 Payment Invoice Module, you can easily filter to see which invoices are outstanding and even set up automated reminders to send to your customers until they pay the invoice in full.
CON #1: Fraud and Compliancy Concerns
The news constantly has stories about stolen credit cards or hacked credit card systems. These stories are enough to strike fear into any business owner and credit card holder, but the truth is, the impact all depends on the credit card processing company you use. Some credit card processing companies put the burden of Payment Card Industry Data Security Standard (PCI DSS) requirements and certification on you, the merchant. Ensuring you have all the systems in place to keep credit card information secure can cost hundreds or thousands of dollars each year.
Project 2 Payment takes on the burden of PCI DSS compliance for our customers by creating security measures that ensure we have a level 1 certification. We take security seriously and make sure that all your information and your customers’ information is safe. We do not charge you extra fees for this because we believe it’s part of being a responsible credit card processing company.
Con #2: The Cost of Taking Credit Card Payments
The last thing any business wants is to add another expense. Avoiding the costs associated with card payments is one of the biggest reasons that businesses will forego offering their customers the convenience of taking credit card payments. An important thing to consider is whether your business may end up making more money by accepting payment types preferred by your customers. By reducing friction in the payment process and making it easy for customers to pay, you also end up getting paid faster, which means more money in your bank account and more cash flow to take on new work.
When you find the right software with the right credit card processing partner, the cost of taking credit cards is less daunting than you might expect. For example, Project 2 Payment offers a flat rate across all credit card types, making it easier for your business to budget for project expenses. A flat rate also makes it easier to adjust your pricing to accept credit cards without eating the processing fees that come with it. You can raise your prices by a flat 3% to offset your credit card processing costs so your profit margins stay the same and your customers have an easy way to pay you for a job well done. It’s a win-win!
Simplify with All-in-one Software
Project 2 Payment can help make your life easier and increase your cash flow by providing you simple software tools, excellent security, an easy customer interface, and a low flat rate for credit card processing. Plus, you can still take cash or check from your customers that don’t want to use credit cards and track all payment types within one tool. It may seem like a big change, but we promise it’s worth it, and we will help make the switch feel effortless. Start offering the convenience your customers want, get paid faster, and track payments more easily today.
