What’s your preferred method of collecting payments for roofing jobs?
If you’re still relying on cash or paper checks, it’s time to upgrade to a secure and modern payment solution. Don’t get left behind as the US rapidly embraces cashless transactions. According to the Federal Reserve’s 2024 Diary of Consumer Payment Choice, 84% of all payments made in the US in 2023 were cashless.
Switching to real-time payment tracking and offering roofing financing options can significantly boost customer satisfaction. These comprehensive solutions simplify the sales process, enhance security, and ensure steady cash flow for your roofing business. Maybe it’s for a small roof repair or a brand new roof replacement, using streamlined payment plans can make payments easier and faster for both you and your customers.
This guide is your ultimate roadmap to transforming how you process payments for roofing companies. Learn how to setup a range of payment options and creating seamless transactions with just a few clicks. It explains it all.
Here’s what we’ll cover in this article:
- The importance of digital payments in the roofing industry
- The benefits of adopting online payment methods for roofing projects
- How enhanced security protects both you and your customers
- Tips for integrating payments into your roofing workflow
- What to look for in a dependable digital payments solution
- What to look for in a dependable digital payments solution
- Steps to accept electronic payments and get paid faster
- Get ready to optimize your payment processes!
Why Online Payments for Roofers?
Online or digital payment processors are payment systems that don’t deal in cash. Instead, they transfer funds electronically using payment networks, apps, or digital devices. These include credit/debit cards, mobile wallets, online banks, e-checks, and peer-to-peer payment apps.
Cash payments are fast losing favor among businesses and consumers alike. All indicators point to a growing preference for cashless transactions, not only in the US but globally.
With the world growing more digitized by the day, cash may soon become obsolete. That’s a bold prediction, but it’s already happening. Companies like Amazon and Tender Greens are actively experimenting with cashless outlets.
Contractors are embracing cashless payments too. PYMNTS reports that 30% of US construction firms are now investing in digital payments to relieve financial pressures.
The point is, digital payment is here to stay—and in a big way.
You, too, should be excited about accepting digital payments for roofing contracts. Here’s why:
- Easy payment process
Swiping a card or pressing a button is certainly much easier than counting notes. Digital payments are especially convenient for big roofing jobs costing several thousand dollars. Imagine getting paid something like $30,000 in twenties and fifties.
This convenience goes both ways. It’s easier for homeowners to pay in digital rather than cash. Besides, barely anyone keeps enough cash at home to pay for typical roofing jobs.
- Instant transactions
Most digital transactions are instant. The transfer happens as soon as the client swipes their card or taps on “Pay Now.” Meanwhile, traditional payments like paper checks and money orders can take days to clear.
Instant transaction means zero delay in payments. This is good news for your cash flow, particularly when operating on tight budgets and slim margins.
- Automated billing and bookkeeping
With cash-based payments, you have to painstakingly record each transaction manually. Luckily, that’s not the case with electronic payments. Digital systems automatically log and organize transactions for you; some will even prepare bills, invoices, and receipts.
Billing and accounting don’t get easier than this. It also means you can spend more time on contracting work instead of crunching numbers.
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- Reduced errors
Digital methods minimize human involvement in roofing payments processing. That also reduces the likelihood of billing and accounting errors. You never have to trouble yourself double- and triple-checking every transaction.
- Secure payments
Cash is the least secure mode of payment. Hard money can easily be stolen, lost, or damaged. And worryingly, an estimated $70 million to $200 million in counterfeit bills are in circulation at any given time.
Digital payment processors, on the other hand, have sophisticated security measures. Some of those measures include multi-factor authentication, biometrics, and anti-fraud protection.
Importance of Secure Payments for Roofing Contractors
Security is a major concern when it comes to digital payments. These systems are prime targets for cyber scams and financial fraud. In 2023 alone, 80% of US organizations fell victim to payment fraud attacks/attempts.
Also, digital payment processors collect a lot of sensitive information. Users often have to share their banking details, credit card numbers, addresses, and contact information. Such data can do severe damage in the wrong hands.
That explains why nearly two-thirds of consumers do not trust digital payments.
But that doesn’t mean digital payments aren’t secure. Payment providers go to great lengths to protect users from fraud and cyber scams.
However, some payments are definitely more secure than others. Yours is to choose the safest ways to accept payments for roofing.
So, what are the most secure payment methods for roofing contractors?
Credit/Debit Card Payments
Card processors are incredibly secure. That’s part of the reason credit and debit cards are the most popular payment methods in the US.
Card-based transactions are secured with top-of-the-line access control, CVC checks, user authentication, firewalls, and encryption.
Also, credit/debit card processors are legally required to comply with the Payment Card Industry Data Security Standard (PCI DSS). This is a set of security rules and standards that guarantee user safety and data privacy.
Mobile Digital Wallets
Digital wallets are portable payment apps or services. These are the likes of Google Pay, Apple Pay, Venmo, and Samsung Pay.
Mobile digital wallets feature robust cybersecurity protocols. Those security features include biometric authentication, tokenization, multi-factor authentication, and data encryption.
ACH Payments
Automated Clearing House (ACH) payments allow electronic fund transfers between financial institutions.
Getting paid via ACH is a bit of a faff, but it’s very secure. ACH networks are fortified with airtight encryption, fraud prevention, verification, and authorization measures.
E-Checks
E-checks are the electronic version of paper checks. They are a type of ACH transfer normally used for quick, one-off payments.
Unlike paper checks, e-checks are sent and verified instantly. E-checks are also more secure since they run on ACH networks.
Payment Gateways
Payment gateways enable transactions between similar or different financial platforms. They do so while ensuring data safety and privacy, strict access control, and fraud protection. Popular payment gateways include PayPal, Stripe, and Square.
Benefits of Accepting Online Payments for Roofers
Why should you bother with online payment? Isn’t paper money good enough?
Money is money; it doesn’t matter whether it’s paper, plastic, or digital. The way you get paid, however, can heavily impact your roofing business.
Here’s why you should accept online payments for roofing contracts:
- Easier financial management: Digital transactions are largely automated, simplifying financial management.
- Better customer experiences: Many homeowners find online payments easy, secure, and convenient. Accepting digital payments goes a long way in boosting the customer experience.
- Faster payments: With digital payments, you get paid faster—no more delays waiting for roofing invoices to clear.
- Improved cash flow: Faster payments result in smoother cash flow. Online payments are a great way to keep your account receivables in the green.
- Data insights: Digital payments generate valuable customer and financial data. Analyzing this data reveals actionable insights into improving your roofing business.
What to Look for in a Payment Processing Solution
When it comes to digital payment solutions, there are countless options out there. Yet, every solution is unique. And some are simply not the right fit for a roofing contractor.
How do you find the best payment processing solution for your business?
Unfortunately, there’s no one right answer.
Consider the following when choosing a digital payment system:
Ease of Use
Is the system easy to use, and not just for you but for the customer as well?
You want a payment solution with an intuitive, user-friendly interface. From the customer’s perspective, navigating the checkout process and making payments should be easy. It should also be easy for your business to receive and track those payments.
On the same note, ensure the solution has adequate user support. Have that peace of mind that you and your customers can get help when needed.
Security
Make security a top priority.
An insecure payment processor puts your entire contracting business at risk. Customers will quickly lose trust in the business if your payment system keeps losing money or leaking sensitive data. You obviously don’t want that.
Look for a payment processor with multiple security guarantees.
Costs
With digital systems, you must pay to get paid. Firstly, there’s the initial cost of setting up the system. This may include the cost of new hardware, software, and system integration.
Secondly, payment processors charge a small fee for their services. Most processors take a small percentage of each transaction. Others charge a flat monthly fee, depending on the transaction volume.
Although relatively small, processing fees can really add up. Also, the pricing model can impact the overall cost of payments. So don’t look at the fee alone; consider how the fees are charged too.
Ask yourself if the costs make sense for the sort of payments you normally receive.
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Accessibility
Go for a payment processor that’s readily available to everyone. Roofing customers should be able to make payments from anywhere and at any time.
You must also consider when and how your business receives payments. For instance, a portable PDQ machine would be handy for processing payments on work sites. Interestingly, PDQ stands for “process data quickly.” That’s a fitting title for machines that process card payments right on the spot.
Scalability
A good payment system scales with your business. As the business grows, so does its payment volume. So, you want a scalable solution that seamlessly handles rising payment demands.
Stay away from payment processors with a strictly limited capacity. Even if your transaction volume is low right now, it might not stay that way for long.
Speed
How fast can you get paid?
Obviously, the faster, the better.
Not all digital payments are instant. Some, like e-checks and ACH transfers, can take hours or even days to complete a transaction. Before choosing such systems, ask yourself if you can wait that long to get paid.
Integrated Payment Options for Roofing Businesses
What are integrated payments?
Payment integration means connecting payment processors with existing business solutions and operations. Picture a payment system that links to your roofing software, accounting/billing software, customer relationship manager tool, and project management system.
Crucially, an integrated payment system consolidates several payment methods in one place. So you don’t need multiple apps or tools to accept payments for roofing.
Integrated payments enable you to automate various business processes. For instance, you can calculate cash flow, earnings, and contracting performance without manual entries. Also, integrated systems provide real-time cash flow data essential for managing finances, customers, and roofing projects.
Another good thing about an integrated payments system is that it increases payment flexibility. You can offer integrated payment options to your roofing customers, such as:
- Financing plans: The client can work out a financing plan where you get paid by a lender or financial institution.
- Monthly payments: Instead of paying in a lump sum, clients can spread roofing payments across a couple of months. It might be easier for most homeowners to pay this way, especially for big roofing projects.
- Buy now, pay later (BNPL): The client gets their roof done but pays at a later date. It’s easier to make such an agreement with integrated payments.
- Automatic payments: An integrated payment system can automatically request and process periodic payments. This is great for large roofing contracts with recurring payments that get paid in phases.
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What Does It Take to Set Up Payment Processing?
Here’s a quick step-by-step guide to setting up digital payments for your contracting business:
- Compile a list of payment requirements and pain points for your business.
- Research the best digital payment methods for roofing contractors.
- Select a payment provider.
- Gather the necessary tools, hardware, and apps to process payments.
- Get everything up and running with the help of an expert.
- Test the payment system before presenting it to customers.
- Explain to your customers and crew how the new payment system works.
- Encourage or incentivize clients to pay via digital means.
- Gather and act on any feedback provided by users.
- Improve the system over time to keep up with emerging payment trends in the roofing industry.
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