The Best Credit Card Processing Solutions for Your Construction Business

Jul 27, 2018

For businesses in the construction industry, it is not an easy task to narrow down to the right credit card processor due to the project-based model of the industry which often requires business owners to take large irregular payments. And for company owners who care about convenience, the challenge is to provide a range of options for accepting these card payments. For instance, on top of receiving payments in your office, you may want to be able to take plastic payments in the field with a card reader linked to your phone.

So how do you get the best contract?

1. Obtain a merchant account

You will need to find a high risk merchant account. There are two types of payment processors to pick from— ISO/MSPs and Merchant aggregators.

Most account providers are ISO/MSPs, and they help firm owners obtain merchant accounts. These vendors are best for businesses that process over $3,000 per month, and those with irregular transaction amounts, which makes it the perfect fit for construction companies.

Merchant aggregator, also known as payment facilitators sponsor several firms under their large merchant accounts. Companies earning less than $3,000 per month may cut costs working with such processors because they have flat rates, and zero monthly/annual fees. But aggregators are riskier than ISOs as the irregular transaction may trigger a fraud alert and leave you with a frozen account.

2. Mention your transaction amounts and volume upfront

Give as accurate as possible info when a sales rep asks you to quote your average ticket (invoice) size, amount you process per month. Remember, these are the numbers they use to determine the costs linked to your account.  It also helps to inform your service provider of future irregular large transactions ahead of time.

3. Go for processing partners that offer month-to-month service

Avoid lengthy contracts to give you room for shifting to a more compatible partner (without penalties) if you suddenly realize your payment processor is not a good fit for your construction business.

Payment Processing agreements characteristically have 3-year terms and press high termination fees if a merchant terminates the deal before the duration runs out. For that reason, you should read carefully the contract to confirm the term length, cancellation procedures, and any relevant fees before signing an agreement.

4. Apply for interchange-plus pricing

Experts recommend that retailers go for the Interchange-plus pricing model, though the majority of sales reps quote the starting rate for the tiered pricing model (known as the qualified rate, and only applies to the regular cards you take in person).

Be wary of sales representatives that encourage you to go for the tiered pricing plan— this model only benefits the processor at your expense. Some payment processor may want you to meet certain basics before they approve you for an interchange-plus model, e.g., a set monthly transaction cap which you must match to qualify.

5. Consider a processor that initiates Level 2 and 3 processing

The payment vendor processes the credit card payments you take from a client as a Level 1 transaction. They often require minimal info to process. Nevertheless, you risk paying a higher fee if your customers are other businesses and they make payments with corporate cards unless you submit additional details about the transactions.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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