Today we are honored to present an article by Blair Thomas. He is an electronic payment expert with eMerchant Broker and his focus is on how contractors can benefit from accepting credit cards.
Many building contractors estimate and price their services according to each individual job they complete. Some contractors request their customers to make periodic payments as the project progresses according to a payment plan, such as 10 percent down, 25 percent due one week after construction begins and the rest upon completion of the project. However, some contractors may find that customers do not always adhere to the schedule and may give excuses as to why they cannot pay the contractor the money that he is owed.
Benefits of Mobile Payments and Mobile Security
Fortunately, new technology such as mobile payments and mobile security have provided a more efficient way for contractors and other small business owners to get paid. On the customer’s end, mobile payment programs allow for clients to make payments by holding up their mobile phones instead of sending cash, checks, money orders or credit card numbers. Mobile security applications ensure that customers' information is protected from theft or misuse. For building contractors, implementing mobile payments can mean the difference between receiving money now and waiting for it later down the road. Should a customer not pay a bill, the contractor may be faced with the hassle and difficulty of filing a claim against the customer to obtain the money that the customer was under obligation to pay.
Building contractors and business owners may benefit from the opportunity to integrate incentive and loyalty programs into their mobile payment applications. Instead of requiring clients to keep up with key ring tags or punch cards, the client’s information is stored in the application every time they make a purchase or request a service. Additionally, building contractors may also consider providing incentives through referrals from previous or current clients and reward them should a friend or family member hire them to complete a job.
Rather than wait for cash or check in the mail, contractors can offer clients the convenience of making credit card payments directly to the mobile application. Previously, many small businesses such as those operating from food trucks or farmers’ markets were not able to accept credit cards, resulting in decreased sales because clients may not have had enough cash on hand to buy the products or services they desired. By implementing credit card payments, building contractors can increase sales and their customer base. It is vital to have a trusted mobile security application when processing credit cards so that the customer is comforted in knowing that private, personal information will not be used for other purposes.
By the same token, using a mobile payment system to run credit cards eliminates or greatly reduces the money that business owners would spend on credit card fees. While some mobile payment companies charge less for a transaction than credit card services, some owners do not pay any fees until a customer meets certain incentive requirements. Additionally, some high risk merchant accounts that require credit card processing are available to be implemented within the mobile payment system, ensuring that business owners from all financial backgrounds have the option to use the technology.
Building contractors may also relish in the ability to track the needs of the customer and their current inventory. By maintaining information about the services completed for customers, building contractors can implement marketing techniques to gain additional clients and ensure that customers are making payments on time. Rather than keep a computer document or paper folder with customers’ information that are prone to damage or loss, all of the documentation regarding payments, schedules and services are kept right at the contractor’s fingertips.
While mobile payments and mobile security are not yet everyday occurrences, more building contractors and small business owners are turning to the new technology to save money, build their customer base and ensure that they receive the payments that they are owed in a timely and professional manner while still protecting the privacy of their clients.
Blair Thomas is an electronic payment expert, who loves all things finance and planning and is the co-founder of The High Risk Guys. When he isn’t running his business, he’s more than likely exploring his other passions; mountain biking and camping. If you would like to see what he's up to, like him on Facebook to get his most recent updates.
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