Credit card processing for contractors: painters, HVAC specialists, and more
If you work as a painter, HVAC specialist, or in another role where you go to clients, you have to accept payments away from your office or workplace. To make payments easy, you probably have a way of taking credit cards in addition to accepting cash and checks. Mobile credit card processing offers convenience for your clients. It also ensures you can get paid, even if a customer doesn’t have the cash on them. They can just swipe the card!
There’s just one problem…
Each time you swipe the card you’re letting money fly out the window. You may think you have to pay those credit card processing fees, that it’s just part of the game.
You don’t have to pay those credit card transaction fees.
We can share with you why you should pay attention to those fees and ultimately how to get free credit card processing.
Picture this: You’re a house painter. Since you run your own operation and manage a team, you bring in $230,000 in revenue from your house painting operation. Your net margins are 30%, which is considered good in the house painting industry. That means you make $69,000 in profits per year—a good deal above the national average salary for house painters.
Now, the average cost to paint a house is nearly $2,900, according to Home Advisor. Given the high cost, many homeowners probably don’t pay you in cash. They most likely write a check or swipe the credit card.
Given that Statista data shows credit cards are the preferred payment method for 40% of purchases, and that research finds that credit card usage increases as transactions values increase, it’s possible 50-60% of your revenue comes via credit card transactions.
So, out of that $230,000 in house painting revenue, you could have left $138,000 subject to credit card processing fees (if 60% of your revenue came from credit cards). To understand how much that dents your salary as a house painter, first understand how much mobile credit card processing fees are.
You’ll pay between 2.4-3% or more for even the best mobile credit card processing. After adding in other fees, such as monthly software fees and same-day funding fees, you could pay almost 4%. That’s a lot to pay just to accept payment.
Back to the house painter example. Here’s how much credit card processing fees are costing you in this scenario:
- After accounting for all fees, you pay an average of 4% in credit card transaction fees on $138,000 of housing painting revenue. That’s $5,520 in credit card processing fees each year.
- If you could eliminate those fees, your profits as a house painter would jump from $69,000 to $74,520.That’s a salary increase of 8%!
Whether you’re an independent house painter, tow truck driver, or car mechanic, it pays to pay attention to credit card processing fees. By getting the Pazas credit card processing for contractors, you could put more money back into your wallet. Think of what you could do with that extra money. You could save more for retirement, take a nicer vacation, put cash aside for your kid’s college, and more. The point is this: You don’t have to lose money to card transaction fees. It’s your money, and you deserve to keep it.
Motivated to take action?
So, how do you get the best mobile credit card processing and take home 100% of your revenue as a house painter or contractor?
Implement a cash discount program and bring home 100% of your revenue.
Having the best mobile credit card processing as a house painter, HVAC specialist, or other independent contractor consists of one more step: Implementing a strategy to eliminate fees altogether.
Enter the cash discount program.
As the name would suggest, a cash discount program involves giving customers who pay in cash a discount. At Pazas for example, our cash discount program for house painters gives customers a discount of up to 3.95%.
On a house painting job worth $3,000, that’s a discount of $118.50. That would convince many customers to pay in cash.
If your customer still decides to use a credit card, they will pay the full price of $3,000. Since that price already accounts for card processing fees, you’ll receive full revenue from your work as a house painter. You may be asking yourself: Are you allowed to give cash discounts? The answer is yes. A cash discount is 100% legal and compliant, thanks to the Dodd-Frank Act.
Why not just do this by yourself? Visa/Mastercard requirements are tricky and non-compliance penalties are stiff – Pazas ensures that you are compliant and you will never get a bill or penalty when you work with our team.
Interested to learn more? At Pazas we’re ready to help contractors get the best mobile credit card processing with a cash discount program.
Call us at 262-333-4496 or click the link below.
Pazas LLC 