Electronic payments are the norm for both businesses and customers these days, given all the benefits of safety and convenience. Here we’ll explain the many advantages of handling financial transactions online — not just for you, but for your clients as well — whether for credit cards or ACH bank transfers. We’ll also show you how Houzz Pro’s online payments feature offers everything you need to accept funds electronically and securely right away, and share best practices for doing so.

Benefits of Online Payments

1. Convenience

Sending checks is a hassle. Who really wants to sit down and write out a check, log the transaction, find a stamp and then make a trip to the mailbox? And receiving checks is a hassle too, because you have to first wait for them in the mail (or worse, do an in-person pickup), then deposit them, then process the transaction for accounting purposes. Online payments do away with all that. That means they’re part of offering great customer service, showing clients that you respect their time and care to make things as convenient as possible for them.

2. Speed

Why wait several days for a payment to arrive and then clear when you can have the funds much more quickly — in some cases even instantly? Online payments create twofold peace of mind, thanks to processing speed: They reduce worry about being paid and eliminate the chance of payments getting lost in transit. And getting paid quickly allows you to maintain the cash flow that’s essential to run your business successfully. It means you can pay your team, purchase needed materials and supplies, and cover other expenses without having to pay interest on a bridge loan or otherwise scramble for funds.

3. Security 

Cash isn’t necessarily traceable, but online payments are — meaning it’s easier to recover funds in the event of fraud or error. Plus, banks, credit cards and payment processors tend to have robust security features, including fraud monitoring, encryption of sensitive information and two-factor authentication. 

Best Practices for Accepting Online Payments

1. Offer Options Based on Payment Size

For smaller amounts — say, $5,000 or less — consider offering the choice of paying by credit card or bank transfer. While there is a small transaction fee (3.6% of the total amount for credit cards and 1% for bank transfers), clients will appreciate having a choice as well as perhaps being able to earn points or miles on their card. For larger payments, you can encourage payments solely via direct ACH transfer, to take advantage of the lower fee. 

2. Build Fees Into the Cost of Doing Business

While financial transaction fees are tax-deductible, it’s of course better to not pay them out of pocket in the first place. If you build these fees into the cost of doing business, you can pass them along to the client as part of your overall bid, estimate and/or proposal and avoid clients seeing them at the time they make a payment.

Tip: This is a great reason to use software that tracks estimates, invoices and payments in one place.

3. Use All-in-One Software 

Centralization is ideal when it comes to every part of a project, from client communications to payments. Houzz Pro all-in-one software lets you go from estimates to invoices to payments with ease, and offers project management features such as a client dashboard that lets clients see the status of all aspects of the project, including payments. And when you sync the software with QuickBooks, you’ll make quick work of accounting. Plus, you can edit your payment settings whenever you like, changing the payment methods available to clients based on the amount billed, the processing fee or any other component.

Want to give Houzz Pro a try at no cost? Start your free trial today and see how this dedicated all-in-one software can help make accepting online payments — and a whole lot more — easier, faster and safer all around.