Merchant Accounts for Small Contractors

Small contractors in the United States are plentiful. Whether you’re looking for a landscaper, drywall hanger, framer, builder or general contractor, you’re covered. There’s definitely no shortage of skilled laborers and business owners that can complete the job. These types of businesses crux on the ability to get paid. Unlike other business owners, the accepted industry standard is that payment isn’t expected until the job is complete. There are exceptions like, large jobs that last over a month, where payroll needs to be met or supplies need to be purchased. Other than that, the public stigmatizes contractors to collect their money and disappear. Hence, the acceptable practice of not getting paid until the job is complete or paying only when certain portions of the job is completed. This problem is largely regionalized and primarily central to the United States. While It’s not fair to say that these problems between contractors and their customers are unfounded, because there are and have always been a rift between expectations, implied expectations and the final product. These are things that small contractors deal with on a daily basis and it has not been getting any easier for them with the growing number of do-it-your-selfers and more importantly, the growing number of botched jobs by homeowner handymen and women.

If you’re a small contractor, it may not be a bad idea to look into getting a merchant account. Some businesses already have them, but don’t like to use them. Some have them and transfer the rate hike to their customers, because of the fact that their bank usually charges them a high rate, due to the type of business that they’re in and how the money is processed. Let’s start with how the money is processed. Typically, transactions are processed at the merchant’s home or business and over the telephone or on a jobsite. In any case, these types of transactions are classified as card not present transactions, where, the customer doesn’t swipe a merchant terminal. Due to the types of transactions being processed and the type of business that contractors engage in, banks tend to assess higher rates to them and other merchants like them. If you are a contractor and are interested in either obtaining a merchant account, or currently have a merchant account, but would like to better your rates, payment methods or processing intervals, then shopping around for a better deal may be worth your while. Merchant service providers connect processors and banks with merchants of all types every day. The phrase, “Sticking a square peg in a round hole” is very much their concern. A bad banking relationship will never benefit the bank as well as the merchant. Pairing up two parties that have the same expectations going in, is as much the same as you, the contractor explaining the scope of a job, then bringing it to life on site. Merchant service providers have relationships with many different banks; your chances of finding the right fit for you and your business are higher, dealing with a merchant service provider. If you are a small contractor and would like more information about obtaining a merchant account, contact a merchant service provider today.

Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is a leading international payments company based in New York. Stradafee is a retail and ecommerce payment processing provider specializing in international and Internet merchant account solutions. Stradafee also offers check processing, high risk merchant accounts and offshore merchant account options. Stradafee can help businesses of all industries and sizes. For more information on credit card processing and check processing please visit www.stradafee.com.