Electricians need to master a wide variety of skills and practices to be competitive in the electrical industry.
You’ll need to deliver effective, safe, and long-lasting services. And you’ll need to perform your work with a friendly attitude and attention to detail.
But it also means you’ll need to excel hands off the tools. This includes managing payments.
Today, customers expect convenience. They’re not about to run to the ATM to get cash for a payment.
They also demand security. They want to pay in a way that feels safe and familiar to them. And for many, that means using credit cards.
This is your quick-start guide to credit card processing for electricians.
We’ll explain why it’s essential, the types of solutions to choose from, and the steps to getting set up.
We’ll give you some bonus tips on lifting the customer experience, before wrapping up with a few ways to get started today.
When payments are easier for your customers, business is easier for you. It’s a win-win!
Why Credit Card Processing Is Essential for Electricians
Getting paid is how you keep your vehicles on the road and any staff you have employed. But there’s more to it than the logistics.
Let’s explore the benefits of improving your payment process with credit cards in more detail.
Meet Customers’ Expectations
Cash is out. Less than one in 10 Americans use cash to make payments.
If you only accept cash or check, you’re alienating a huge portion of your potential customer base. And that’s bad for business.
On the other side of the coin, if you do accept credit cards, you meet customers’ expectations. They see you as reliable and professional. They trust your legitimacy, which can nudge them over the line and get them to convert.
Boost the Customer Experience
Easy is the name of the game when it comes to customer experience. Few payment options could be easier than credit cards.
Your customers can just swipe or tap, and the job is done. No fussing. No fumbling for cash or pulling out their never-used checkbook.
The process is convenient from start to finish. This makes it more likely they’ll choose you again and recommend you to others.
Get Paid Faster
Waiting for checks to clear or tracking down late payments is a hassle and a time-waster.
Credit card payments are processed within a day or two. So you’ll have the money in your account faster.
With steadier cash flow, you can purchase what you need for the next job and start on time. You can cover unexpected expenses and invest in your business’s growth.
Gain a Competitive Edge
Not all electricians accept credit cards. If you do, you’re already a step ahead of those who don’t.
Why? Because customer service is a critical differentiator. In fact, a huge 88% of customers say good customer service leads them to purchase again.
Reduce the Risk of Non-Payment
When you accept credit cards, you lower the chances of not getting paid.
Credit card processors check that funds are available. This cuts the risk of bounced payments.
FROM ONE OF OUR PARTNERS: 5 Easy Ways to Accept Credit Cards
Types of Credit Card Payment Solutions
You’re convinced. Credit card payments are your next business investment.
So far, so good. But before you take the next step, get familiar with the types of solutions available to you.
Mobile Payments
Mobile payment solutions use mobile card readers instead of your traditional credit card terminal. The reader connects to your smartphone or tablet.
This option is ultra-flexible. You can accept payments wherever the job takes you. You don’t have to issue invoices when you’re back in the office and wait for payment.
Best use case: Consider mobile payments if you work in different locations and want to collect payment right away.
Online Payments
Shopping online has become the norm. Now, taking online payments from your customers has become the norm too.
This happens through a secure payment portal. They follow a link and enter their credit card information. The funds are then transferred to your account.
Online payments are convenient. Your customers can pay at a time that suits them. They also make it possible for you to receive payments before you arrive at a job site.
For example, you might request a deposit for a larger job.
Best use case: Online payments are great if you want customers to be able to pay remotely. They’re also ideal for larger-scale projects that require a deposit or payments to be made in stages.
RELATED ARTICLE: Accepting Credit Card Payments as a Home Service Contractor
In-Office Payment Solutions
In-office payment solutions are physical credit card terminals that live permanently in your office or workshop.
They work in much the same way as you’d pay for your groceries with a card. This terminal connects to your bank and processes payments on the spot.
This option is reliable and secure. It’s perfect if you often have customers come to your office to pay.
Best use case: Use in-office payment solutions if you handle payments in a fixed location—not on the job site.
Point-of-Sale (POS) Systems
A POS system is a combination of software and hardware. You get the terminal and card reader. Sometimes, you also get a cash drawer.
Think of this option like a next-gen in-office solution with more features. They can process different payment types and sometimes come with business management functionalities.
For example, they might keep track of your inventory in real time. Or they might produce sales reports you can use to make data-backed financial decisions.
Best use case: If you have a storefront or office that your customers come to, consider a POS system. It’s also a worthwhile option if you sell products too.
Virtual Terminals
Virtual terminals are exactly what they sound like: terminals without the hardware.
You can process credit card payments on the computer. You pop in the customer’s credit card info, and the rest is handled by the provider.
The advantage of this option is you don’t need a physical reader. You can process payments via email or even on the phone.
Best use case: Virtual terminals might be a good fit if your clients pay remotely. They also work if you accept payments at an office but don’t have a card reader.
6 Steps to Set Up Credit Card Processing for Electricians
Ready to get paid with a credit card? Here’s the step-by-step process to get started with credit card processing for electricians:
Step 1: Choose the Right Payment Processor
The first step is all about research. You need to find a payment processor that meets your business needs, size, and limitations like budget.
Jump online and start searching. Read reviews and testimonials.
Be sure to compare fees. Generally, fees are structured as both a flat fee per transaction plus a percentage of each sale.
It goes without saying that lower fees are better. But proceed with caution. What corners are being cut? You still want excellent reliability, dependable customer support, and fast transactions.
FROM ONE OF OUR PARTNERS: What Are Credit Card Merchant Fees? The Different Types Explained
Step 2: Set Up a Merchant Account
You’ll need a merchant account to accept credit card payments.
This is essentially a special type of bank account. Funds are transferred from your customer’s account to the merchant account and, finally, your regular business bank account.
In most cases, your payment processor will help with this step.
Troubleshooting tip: Was your merchant account application denied? Your credit history could be the culprit. You can check yours at AnnualCreditReport.com.
Step 3: Purchase Payment Hardware
Does your new payment method need equipment? Now’s the time to buy it. This might include terminals or mobile payment readers.
If you’re unsure, consider your day-to-day.
Do you work on-site mostly? A mobile card reader might be best. Do you spend more time in an office? Look into countertop terminals.
Whichever way you go, just double-check that the equipment is compatible with your payment processor.
Step 4: Maintain Compliance with Industry Standards
Credit card payments can be risky. They can be intercepted and used to commit offenses like identity theft.
To combat this, any business that accepts credit card payments must follow the Payment Card Industry Data Security Standard (PCI DSS). This protects sensitive customer data.
Your payment processor should manage compliance on your behalf. But that doesn’t mean you can relax completely.
Always follow security best practices. Use secure Wi-Fi networks, keep your software up-to-date, and train your staff.
Step 5: Integrate Credit Cards with Your Existing Systems
Your business should run like a well-oiled machine. To achieve this, connect your new payment processing system with your existing accounting software.
Integration means payment data automatically syncs with your books. You don’t have to do this manually, which is a big time-saver. It also reduces human error.
Troubleshooting tip: Having trouble with integration? Turn to your payment processor and see if they can help. Your software provider might have a plug-in that solves the problem too.
Step 6: Test the System and Go Live
Better to find an issue now than later. So, test that everything works as it should.
Run a few test transactions by processing a small payment. Check to see if it shows up in your merchant account. It should appear in your integrated accounting system too.
If it’s all good, it’s time to go live. Inform your clients that there’s a new, easier way to pay.
Troubleshooting tip: Transaction failing? Double-check all connections and configurations. If nothing you do seems to work, reach out to your payment processor.
Elevate Your Customers’ Experience
The customer experience can make or break your success. Accepting credit cards is a great start. But here are some bonus ways you can use the payment process to give you an edge:
- Offer many different payment options. Customers have preferences, so cater to them all.
- Set up a recurring payment system. This is excellent for regular maintenance services or ongoing work. Your customers don’t have to think about a thing—their payments are made automatically.
- Improve your invoices. Make sure they are easy to understand. Check they clearly list your payment terms.
- Send payment reminders automatically. These help your clients avoid late fees. Make sure the message is polite and short—a gentle nudge is all it takes.
FROM ONE OF OUR PARTNERS: How to Grow a Small Electrical Business
Top Tips for Electricians: Getting Started with Credit Card Processing
Get started today with these three quick tips:
- Assess your needs. Do you work mostly on-site or in an office? How many payments do you process? Think about what you need and use this to guide your decision-making.
- Choose the best-fit payment solution. If you’re always on the go, this might be mobile payments. If you want to make billing and invoicing easier, maybe online payments are the best choice.
- Research processors. Look at their fees, customer feedback, integrations, and quality of customer support.