For many service businesses, the work doesn't happen at a traditional checkout counter.
Contractors, landscapers, HVAC companies, plumbers, repair businesses, and other service providers often complete work at a customer's home, business, or job site. When the work is finished and payment is due, they need a convenient way to get paid.
Credit cards can provide that convenience, but they can also come with higher processing costs, particularly as transaction amounts increase. And when customers want to pay directly from their bank account, businesses need a practical way to accept those payments outside the office.
ACH and remote deposit capture can give service businesses additional ways to accept payment in the field while also helping manage payment risk.
Accept ACH Payments Without a Traditional Checkout
A customer doesn't need to be standing in front of a payment terminal to make an ACH payment.
With CrossCheck Pay-by-Link, a business can send the customer a secure payment link by text or email. The customer uses the link to connect their bank account through open banking and authorize the payment.
That can be useful when a contractor finishes a project, an HVAC technician completes a repair, or another service provider needs to collect payment away from its normal place of business.
The customer can pay from a bank account without providing routing and account numbers directly to an employee or writing a paper check.
For businesses, ACH also provides another payment option alongside credit cards. Guaranteed ACH can cost businesses considerably less to accept than credit cards, particularly when collecting larger payments.
Accept Checks in the Field With Remote Deposit Capture
Some customers still prefer to pay by check.
Remote deposit capture allows a business to electronically process a paper check without requiring the check to be physically taken to the bank.
For a service business working in the field, an employee can use a smart device to capture the customer's check through the payment portal and electronically submit it for processing.
That means a business can accommodate customers who prefer checks while incorporating electronic processing into its payment workflow.
Offering both ACH and check options gives customers more flexibility without requiring every transaction to be handled by credit card.
Protect the Business From Returned Payments
Convenience is only part of the payment decision. Service businesses also need to consider what happens if a payment is returned.
That can be especially important when the business has already completed the work, supplied materials, or incurred labor costs.
CrossCheck's ACH Pay-by-Link includes guarantee protection for eligible ACH payments. Checks processed through CrossCheck's remote deposit capture solution are guaranteed when eligibility requirements are met.
Guarantee protection can help reduce the financial risk associated with eligible returned payments, giving a business greater confidence when accepting bank-based payments.
Consider Payment Costs on Larger Transactions
The cost of accepting payment can become more noticeable as transaction amounts increase.
Credit cards remain an important payment option, particularly for customers who want the flexibility of revolving credit. But percentage-based card processing costs can add up when a service business regularly collects larger payments.
Some businesses may use a compliant credit card surcharge to offset those costs, but that passes the expense to the customer.
Providing an ACH option gives customers another way to pay directly from their bank account. Depending on the provider and pricing structure, ACH can cost considerably less to accept than a credit card payment.
The goal isn't necessarily to replace cards. It's to give the business and its customers more choices.
Make It Easier to Collect Payment When the Work Is Done
Getting paid in the field doesn't have to mean carrying a payment terminal or waiting for an invoice to be paid weeks later.
A business can send an ACH payment link when payment is due. If the customer prefers to write a check, the business can capture and electronically process the check in the field.
Both approaches can help service businesses collect payment as part of their normal workflow while giving customers convenient ways to pay from their bank account.
And with guarantee protection for eligible payments, businesses can also address an important concern: what happens if the payment is returned after the work has already been completed.
Build Payment Options Around Your Customers
There isn't one payment method that's right for every customer or every transaction.
Cards provide convenience and access to credit. ACH provides a way to pay electronically from a bank account. Checks remain familiar to customers who prefer them.
For service businesses, offering multiple payment options can make it easier to collect payment wherever the work takes place while balancing convenience, acceptance costs, and payment risk.
Want to give customers more ways to pay in the field? CrossCheck offers guaranteed ACH and check payment solutions that can help service businesses accept payments while reducing the risk of eligible returned payments. Contact CrossCheck to learn more.
Frequently Asked Questions
Can a service business accept ACH payments in the field?
Yes. An ACH payment link can be sent by text or email, allowing a customer to authorize payment from a bank account without being at the business's physical location.
Can a service business process a customer's paper check in the field?
Yes. Remote deposit capture can allow a business to use a smart device to capture the customer's check through a payment portal and electronically submit it for processing.
Can ACH and check payments be guaranteed?
Yes. Guarantee services can provide protection for eligible returned ACH and check payments when program requirements are met.
Why might a service business offer ACH in addition to credit cards?
ACH gives customers another way to pay directly from their bank account and can cost businesses considerably less to accept than credit cards. Offering both allows customers and businesses to use the payment method that best fits the transaction.