As a landscaping contractor, do you accept credit cards from your customers? If you serve a residential market, you likely know that many customers prefer this. But even if you primarily serve commercial accounts, you may be surprised to learn that they may like the flexibility to pay with a credit card, too. Either way, accepting credit cards can solve typical back-office issues associated with invoicing and collection. And even better, Aspire's integration with CardConnect, a well-known payment processor, makes it even easier for you to manage.
Consumers (i.e., your residential customers) love using credit cards
It's a given that residential customers prefer credit cards over cash or checks. According to Experian's State of Credit report, the average American holds over three credit cards and it's expected that this number will continue to grow. Cash is no longer king. It's all about convenience, and your residential customers are no different.
Another thing to consider is that people tend to spend more with credit cards. They're not limited by the amount of money they have on hand, and may even use a credit account as a financing option for larger, one-time construction projects. Their financing option becomes cash in your pocket.
If you're not currently providing your customers with this payment option, you should reconsider that decision. Yes, the quality of the services you provide comes first, but in today's competitive environment you need to make it as easy as possible for customers to do business with you. All things being equal, offering credit card payments could be the difference between you and your closest competitor.
What about commercial accounts?
You might assume that commercial clients aren't interested in using credit cards. Not necessarily. In fact, according to PYMNTS.com, a credit card industry news and publication site, check usage among B2B customers is expected to decrease by 30% by 2020. Of all B2B customers that use credit cards as a way to send payment, 83% of them are satisfied with its use. Per PYMNTS.com, "The disconnect between consumer and B2B payments ecosystems is peculiar given the innovation wave that has swept the business landscape in recent years."
It's clear that commercial accounts have become more comfortable, and may even prefer, using credit cards to pay their vendors. If you're not offering this payment option, think twice. Adding the flexibility to pay by credit card could make a difference in their perception of how easy it is to work with you.
Back-office benefits to consider
If you manage accounts receivable for your business, take note: accepting credit cards can eliminate common billing headaches and increase your business's cash flow. Forty-seven percent of U.S. small businesses say invoice payment collection is their largest cash flow management challenge, not to mention the risks of accepting a bad check. Accepting credit cards can help with both. Funds from a credit card transaction hits your bank account the next day, providing you with almost immediate access to your cash. And bounced checks become a thing of the past, removing a time-consuming and frustrating experience for both you and your customer.
What about merchant fees?
It's true there are additional costs associated with accepting credit cards. Your payment processor will charge you a small percentage of the transaction amount. It's quite possible, and even likely, that the benefits described above may more than offset this additional cost. However, it's a legitimate question.
One way to recoup the extra cost is to charge a small convenience fee to your customer when they choose to pay by credit card. You might be surprised that most of your customers will readily accept such an arrangement. They still prefer the convenience of paying by credit card, and they're likely enrolled in a loyalty program with their card provider to earn points/rewards/miles. It's still a win-win situation for them...and you.
Learn about credit card processing within Aspire Software
Aspire customers are able to accept and process credit card payments directly within the Aspire platform through a built-in integration with CardConnect, a leading payment processor. To learn more about this integration and how it might benefit your business, please Contact Us for more information.