As a business owner in the interiorscape industry, it’s important to consider the available payment options and the potential pitfalls that come with them. There was a time when I received payments by check via snail mail. It was a long and drawn-out process that took anywhere from 15 to 30 days. Credit card payments eventually became more accessible for small businesses like mine. Unfortunately, the high fees and equipment requirements made it more trouble than it was worth. Then, ACH payments became an option, offering quick and easy transactions without the need for physical tender or equipment. Best of all, it was free, until some of my clients began outsourcing their accounts payable.<\/p>\n\n\n\n
Have you ever found yourself in a situation where you’ve received direct deposit payments from third-party accounts payable companies?<\/strong> It can be a headache, especially when clients fail to mention that they’ve outsourced their invoice processing. And if that wasn’t frustrating enough, you might not even be aware of the sneaky little processing fee that accompanies each ACH deposit<\/strong>. It’s a classic case of being kept in the dark, and it’s enough to make anyone want to pull their hair out.<\/p>\n\n\n\n I initially encountered one small client who began outsourcing their payment processing. At the time, the 2.5% reduction in my payments seemed like a small price to pay for the convenience. However, when more significant accounts followed suit, I realized these processing fees would quickly eat away at my profit margins. I had to take action, and fast, so I came up with a few strategies to combat this outsourcing issue.<\/p>\n\n\n\n Be mindful of hidden fees when determining how your interiorscape business receives payments. When speaking with a representative of a third-party accounts payable company that I have an account with, I expressed my desire to cancel because of the transaction fees. The representative offered to set me up at their basic level, which would eliminate the processing fee altogether. Frustrated, I wondered why this option was not initially made clear to me.<\/p>\n\n\n\n At the basic level, I lost access to the company\u2019s portal where I could track invoices and deposits. Because I never used the portal, I was more than happy to switch levels to eliminate the transaction fees and continue using the service without any significant income loss. Don’t hesitate to reach out to third-party accounts payable companies to explore all available options and find the most cost-effective solution for your interiorscape business needs.<\/strong><\/p>\n\n\n\n While it’s possible to add a transaction fee to your invoice as a way to cover the cost of a third-party accounts payable processing fee, it’s important to consider that this may result in varied reactions from your clients. Some may accept the fee while others may push back since they’re already paying for invoice processing. To avoid potential issues, especially with high monthly plant maintenance accounts, it’s best to contact the accounts payable provider first to explore your options. Adding fees to your clients’ invoices can affect how they perceive your services, so it’s important to be considerate and speak with them.<\/strong> Upsetting a good client could hurt your interiorscape business and strain your relationship with them.<\/p>\n\n\n\nExplore Your Payment Options<\/h2>\n\n\n\n
Include Transaction Fees on Your Invoice<\/h2>\n\n\n\n