Why Offering Multiple Payment Options Can Boost Your Contracting Business 

Do you offer multiple payment options for your contracting services? 

If the answer is no, it’s about time you did. 

Multiple payment methods allow your customers to choose how they want to pay. That alone can boost your contracting business by attracting more clients, streamlining cash flow, improving customer satisfaction, and more. 

Let’s take an in-depth look at the incredible advantages of offering multiple payment options to clients. We’ll also explore the various ways you can accept payment for contracting services. 

RELATED ARTICLE: How to Seamlessly Accept Payments as a Small Contractor Business 

The Growing Demand for Payment Flexibility 

Gone are the days when everyone paid for everything in cash. Some would argue that those were simpler times—in some ways, that’s true. There’s simplicity in paying cold hard cash upon delivery of goods or services. 

Today, however, payments are much more sophisticated. We now have advanced payment solutions like credit cards, digital wallets, e-checks, and even crypto. What’s more, these modern payment solutions are quickly phasing out cash transactions. 

In the US, cash transactions account for just 5% of the value of consumer payments. 

It’s no secret that consumers across the board mostly prefer digital or card-based payments. In 2024, for instance, 92% of US consumers used some form of paperless payment method. The reason for this shift is simply convenience. 

Paper-based payments, although simple, can be pretty clunky. The payer must have all the money at hand or in a particular bank. That’s too much to ask in an increasingly cashless society. 

However, modern payment systems are very diverse. Some people will prefer one option over another. EverCommerce data shows that cards, ACH, and checks are the most popular methods of service payments. But, some still pay using digital wallets, P2P transfers, and financing options, among other means. 

The choice of payment method is often a matter of personal preference. It’s about what’s available or more convenient to the customer. And that’s why accepting multiple payment solutions makes sense. 

According to one survey, 81% of customers will abandon a purchase if their preferred payment method isn’t available. 

If you only accept one mode of payment, say cash or check, you’re probably missing out on promising contracting opportunities. Try not to limit your customers when it comes to paying. Instead, let them choose the payment option they’re most comfortable with. 

FROM ONE OF OUR PARTNERS: The Future of Payment Processing: 8 Payment Trends Small Businesses Need to Watch 

6 Advantages of Offering Multiple Payment Options to Clients 

You could go the route of persuading customers to pay for contracting jobs using one method or another. Because it’s true that sticking to just one payment method simplifies transactions and bookkeeping.  

But that wouldn’t be the best move for your contracting business. 

Here’s how your business could benefit from offering multiple payment options to clients. 

Improved Customer Experience 

From what we’ve seen, customers expect some level of flexibility when it comes to payments. Providing multiple payment options fulfills that expectation. 

Contracting clients usually choose payment methods based on five key factors: 

1. The funds available to them 
2. What they’re paying for 
3. The amount being paid 
4. The type of job or service 
5. The contractor 

Limiting the available payment options means the customer has to make some compromises. They may have to pay via an inconvenient or complicated channel. That spoils the customer experience. 

On the other hand, accepting several payment methods gives customers the right to choose. Customers can decide for themselves how they want to pay. That, of course, creates a positive experience, leading to a feeling of satisfaction. 

Reduced Payment Delinquency 

Do your clients sometimes delay payments? You’re not alone. In a 2024 survey, 82% of contractors reported waiting over 30 days for payment. 

Payment delinquency is bad news for contractors. Delays, missed payments, and defaults destabilize your cash flow and productivity. 

There are many reasons for payment delinquency; how you get paid might be one of them. Limiting acceptable payments to just one or two options can lead to unwanted friction at checkout. That friction can frustrate the customer or make it difficult to pay. 

Say, for instance, you only accept cash. A customer with no cash at hand will have to withdraw the money from a bank or ATM. Doing so would be inconvenient, time-consuming, and sometimes costly. You can understand why such payments may take time, provided that the client is willing to go through all that trouble in the first place. 

In many ways, offering multiple payment options streamlines checkout transactions. Your customers will have no excuse for late or missed payments. 

Expanded Customer Base 

Accepting more than one mode of payment expands your customer base. In some cases, it might even broaden your contracting services portfolio. 

As we mentioned earlier, the choice of payment mostly comes down to personal preference. Dismissing some forms of payment means also dismissing those who prefer it. That limits the number or sort of people you can work with. It also means you can only offer services payable in “your preferred” means. 

Embracing multiple forms of payment means everyone is welcome to do business with you. It’s a great way to broaden your reach and range of contracting services. 

Sharpened Competitive Edge 

Offering multiple payment solutions can set your contracting brand apart. It could be a unique selling point for your business. 

Payment flexibility is a major factor when choosing who to contract for a home improvement project. Many homeowners will naturally seek contractors accepting the payment solutions they find favorable. Make yourself the go-to contractor by allowing as many systems of payment as possible. 

Increased Business Agility 

It’s not very wise to rely on just one payment method. Think of what would happen if your only mode of payment crashed or got compromised. It’s a classic case of putting all your eggs in one basket. 

From a financial security perspective, allowing customers to pay in many different ways safeguards your cash flow. If one mode of payment fails, the rest will still work. This makes your business more adaptable, agile, and resilient. 

On the same note, adopting modern payment solutions keeps your business on par with prevailing financial trends. You can better and more quickly adapt to changing market and consumer behavior. 

Strengthened Customer Trust 

Allowing customers to pay using their preferred method builds trust in your brand. 

Imagine you hired someone for a job. After completing the job, they say to you, “I only take cash.” Wouldn’t that seem odd or even suspicious? That’s how your customers feel, too, when you insist on getting paid only one way. 

When accepting multiple payment methods, some customers may appreciate the effort you’ve made to accommodate their preferences. Plus, it opens the possibility of trust-based transactions such as buy-now-pay-later and automatic recurring payments. 

Best Payment Options for Contractors 

Thanks to the internet and smart technologies, there are many different ways to get paid. However, not every payment option works for contractors. 

This section highlights seven of the best payment solutions you should consider offering as a contractor. 

RELATED ARTICLE: The 4 Best Payment Options for Contractors 

Cash 

Although some might consider cash old-fashioned, quite a number of people still use it. The Federal Reserve ranked cash as the third most popular payment option in 2023. So, do not lock out customers who might want to pay in cash. 

Pros: 

• Universally accepted and understood 
• No fees 
• Ideal for small payments 
• Immediate settlement 
• No dependency on technology 

Cons: 

• Security risks (counterfeit bills, loss, theft, damage, etc.) 
• No traceability for automated bookkeeping 
• Inconvenient for large transactions 
• Impractical for remote or international payments 

Checks 

There are those who view checks as another antiquated payment method. They are nearly as old as the idea of banks. In their day, checks dominated payments. Fast forward to 2023, and nearly half of Americans didn’t write a single check. 

Although checks are becoming rare, they are not dead. Checks are still a preferred method for making large payments, especially in B2B (business-to-business) transactions. So, again, in the spirit of inclusion, allow anyone who’d like to write you a check to do so. 

Pros: 

• Familiar and widely accepted 
• Traceable paper trail for record-keeping 
• No transaction fees (usually) 
• Ideal for transferring large sums 

Cons: 

• Lengthy processing time (up to three days) 
• Risk of bouncing 
• Danger of loss, theft, or damage 
• Less convenient 

Payment Cards 

Credit and debit cards are by far the most preferred form of payment. According to the Federal Reserve, these cards account for 62% of all US consumer payments in 2023. 

Cards are so popular because they’re easily accessible and convenient to most people. That convenience works both ways too. A simple card swipe or tap is an easy way of getting paid. 

Pros: 

• Convenient to both customers and your contracting business 
• Global reach 
• Easy record keeping and clear cash flow visibility 
• Enhanced security 
• Instant payment 
• Configurable for recurring payments 

Cons: 

• Processing fees 
• Risk of chargebacks and other payment disputes 
• Reliance on third-party payment tools and processes 
• Risk of technical issues and downtime 

Digital Payments 

In this context, digital payments refer to all payments made using a digital platform or device. The digital interface could be a website, app, smartphone, smart card, etc. 

Digital payment systems include: 

• Digital wallets (Venmo, online banks, open wallet, etc.) 
• Mobile payments (Apple Pay, Google Pay, SMS payments, Samsung Pay, etc.) 
• Peer-to-peer transfers (PayPal, Cash App, Zelle, etc.) 
• Contactless payments (contactless cards, RFID chips, tap-to-pay, etc.) 

These modes of payment are quickly gaining traction. In a recent survey, around 70% of the respondents reported using digital payments in the past three months. 

Again, this popularity is all due to convenience. Digital payments can easily be the most convenient form of payment. Your customer doesn’t have to carry cash or cards. They don’t even have to share any of their sensitive banking details with you. 

Pros: 

• Convenient and easy to use 
• Easily traceable 
• Instant payments 
• Support automated payments 
• Reduced reliance on conventional payment systems like banks and cards 

Cons: 

• Heavily dependent on technology 
• Regulatory and compliance concerns 
• Transaction fees 
• Requires some level of financial and technical literacy 
• Risk of technical issues 
• Relatively low spending limits 

FROM ONE OF OUR PARTNERS: The Most Popular Mobile Payment Methods for Business Owners 

ACH Transfers 

ACH payments transfer funds from one US bank account to another. These payments rely on the Automated Clearing House (ACH) network. 

ACH transfer is ideal for your typical contracting payments. For one, it charges much lower fees than cards. Best of all, it supports bulk and automates recurring payments. 

Pros: 

• Accurate and secure 
• Support for recurring and bulk payments 
• Bidirectional 
• Lower transaction fees 

Cons: 

• Available to US bank accounts only 
• Slow processing time (1-3 days) 
• Random transfer limits 

Wire Transfer 

Like ACH transfers, wire payment is a common way to move money electronically from one bank account to another. But unlike ACH transfers, wire transfers are processed individually by banks and transfer service agencies, which is much faster than the ACH network’s batch processing. 

Wire transfers are perfect for large or time-sensitive payments. It’s a handy payment solution for clients who want to fast-track home renovation projects. Also, wire transfer works for both domestic and international payments. 

Pros: 

• Same-day payment, especially for domestic transfers, sometimes even within minutes 
• Support for cross-border payments 
• Well-suited for high-value payments 

Cons: 

• High transaction fees 
• Potential for delays 
• Unsuitable for recurring payments 

Homeowner Financing 

Homeowner financing is an arrangement between you and your contracting customers. You fund the client’s remodeling project, and they pay you back in installments. It’s a buy-now-pay-later sort of deal. 

Alternatively, you could have a homeowner financing provider like Joist partner Acorn Finance fund your clients. In this scenario, a third-party lender pays for the project upfront and is reimbursed by the client through loan repayments. 

Homeowner financing is a way to empower your clients. It lets them take on home improvement projects they otherwise couldn’t afford to pay for in a lump sum. 

Pros: 

• Boosts sales 
• Expands customer base 
• Creates a competitive advantage 
• Broadens your contracting portfolio 
• Reduces payment delinquency 

Cons: 

• Potential for payment delays (unless you use a homeowner financing provider) 
• Risk of bad debts (unless you use a homeowner financing provider) 
• Potential integration challenges 

6 Tips for Accepting Multiple Payment Methods in Your Contracting Business 

Offering multiple payment options makes you a more inclusive contractor. It can even win you favor with clients. Here’s how to get started on accepting multiple payment methods: 

1. Find out how customers want to pay for your contracting services. 
2. Explore the various payment solutions available to you. 
3. Choose the right payment processing platform. Explore options like Joist Payments. 
4. Ensure all your payment systems are secure and compliant. 
5. Inform clients about all the different ways they can pay. 
6. Keep refining your payment options, adding new methods and removing others as needed. 

Looking for a simple, flexible way to accept online payments from your clients?