By offering to accept payments by bank card, contractors demonstrate an increased degree of professionalism and customer service. Knowing they can use a best credit card for construction business reassures customers they have enhanced financial versatility and consumer protection. Plus, paying contractors by mastercard is often the client’s preferred method of financing an essential purchase just like a remodel.
#1 Credit Cards Offer Consumer Protection
Most credit cards offer improved consumer protections, and when there is a payment dispute the card issuer will investigate for the cardholder. That provides consumers confidence that if the standard of the work is not acceptable or on time, they have recourse. Paying by cash, debit card, or check means that the money has already been irreversibly withdrawn using their company bank, without those safeguards.
Even the Federal Trade Commission (FTC) states that by using a bank card is a recommended way to pay contractors. Homeowners trust consumer protection authorities like the FTC, and could only accept bids from contractors who let them pay by credit card. Give them what they want, and they’ll not take their business elsewhere. Instead they’ll be loyal clients and make referrals to their friends who need a contractor.
#2 Credit Cards are easy and simple Kind of Loan
Many clients don’t have enough cash set aside to afford to hire a contractor, so they need to borrow the funds. But getting approved for your own or do-it-yourself loan can be a slow process that involves lots of red tape and documentation. Consumer loans typically require a credit check, and the borrower needs to have a reliable credit score. Lenders may want a substantial cash deposit, and may even charge significant loan origination fees.
Many consumers would rather just pay by credit card to be able to finance their projects without going right through the effort, expense, and scrutiny of trying to get a unique loan. As long as the balance is paid off in a timely fashion it can be an easy, effortless experience and an inexpensive payment strategy.
#3 The Rewards Can Be Attractive
Coming up with the money to hire a contractor may also require financial sacrifice. A buyer may need to forego a family vacation that year to afford it. But by using a credit-based card that offers a generous rewards program and/or attractive sign-up bonuses may permit them to avoid such sacrifices. A number of different cards, for example, offer new cardholders enough free rewards points, as a sign-up bonus, to cover a protracted hotel stay or round-trip airfare.
All the cardholder has to do is charge a specific amount to the card within the first 90 days, which they can accomplish by paying their contractor. Many cards also offer direct cash return rewards, hence the cardholder gets a built-in discount by using their card instead of paying by check. Maybe they will reinvest the amount of money they save to rehire the contractor for another project, which really is a win-win for both the contractor and the consumer.
While these are among the top three reasons clients want to pay contractors with bank cards, customers also enjoy and expect the convenience and security of mobile credit card payments. Contractors using the right payment processing system can accept online payments 24/7, for instance, with e-invoicing and instant generation of detailed customer receipts.