Case Study: How ABC Roofing Increased Revenue and Cut Costs with Modern Payment Processing
ABC Roofing, a successful roofing company, relied primarily on checks for customer payments. While this traditional approach seemed straightforward, it posed several challenges—delayed payments, trips to the bank, and the risk of bounced checks. After switching to card payment processing with dual pricing and ACH payment options, ABC Roofing improved its cash flow, reduced costs, and enhanced customer convenience.
The Challenges of Accepting Paper Checks
For years, ABC Roofing accepted only checks as payment, assuming it would save on credit card processing fees. However, they faced several inefficiencies which cost them more money than the credit card fees:
- Delayed Funds Availability: Waiting for customers to mail checks and then taking time to deposit them slowed cash flow.
- Banking Costs: Regular trips to the bank and deposit fees added up.
- Bounced Checks: Some checks were returned due to insufficient funds, causing further delays and extra charges.
- Customer Inconvenience: Many homeowners preferred the ease of paying by card rather than writing a check.
The Transition to Modern Payment Processing
ABC Roofing partnered with Electronic Money Company to implement a streamlined payment processing system featuring card payments, ACH payments, and dual pricing. Here’s how it benefited their business:
- Accepting Card Payments for Faster Transactions
By enabling credit and debit card processing, ABC Roofing allowed customers to pay on the spot, reducing collection delays. The advantages included:
- Immediate fund availability—No more waiting for checks to clear.
- Increased customer satisfaction—Homeowners appreciated the convenience.
- More security—Reduced the risks of fraud and bad checks.
- Taking deposits via credit card—When customers pay their deposits with a credit card, it builds trust in the roofing company and ensures the payment is received quickly without delays.
- Accepting cards over the phone—ABC Roofing enabled phone payments, allowing customers to secure their roofing projects immediately, leading to faster scheduling and reduced lost sales.
- Implementing Dual Pricing to Offset Costs
One of the biggest concerns about card processing was the associated fees. ABC Roofing adopted dual pricing, which offers two pricing options:
- Cash/ACH Price (lower rate)
- Card Price (includes processing costs, passed to the customer)
With this model:
- Customers paying with cash or ACH received a discount.
- Customers using credit cards covered the processing fees.
- ABC Roofing eliminated card processing costs while still offering the ability for customers to pay by card
- ACH Payments vs. Check Deposits
To further optimize their payment system, ABC Roofing adopted ACH payments for large transactions.
Why ACH over paper checks?
- Lower fees: ACH processing costs are significantly lower than credit card fees.
- No bank trips: Payments are processed electronically, eliminating check deposits.
- Reduced NSF issues: The speed of ACH transactions minimized bounced payments.
- More efficient bookkeeping: Digital records simplified tracking and reconciliation.
The Results
After just six months of implementing these payment changes, ABC Roofing experienced: ✅ 30% faster payments—Cash flow improved with same-day or next-day transactions. ✅ Zero card processing costs—Dual pricing covered all fees, protecting profit margins. ✅ $5,000+ annual savings—By eliminating check deposit fees and reducing manual processing time. ✅ Higher customer satisfaction—Homeowners appreciated multiple payment options. ✅ Increased trust with deposits—Customers felt more secure paying deposits via credit card, leading to higher conversion rates.
Conclusion: Digital Payments Are A Smarter Way to Get Paid
By embracing modern payment solutions, ABC Roofing overcame the inefficiencies of paper check payments while still avoiding unnecessary processing costs.
If you’re a roofing contractor or home services provider, switching to credit card processing with dual pricing and ACH payments can help you increase revenue, improve cash flow, and cut costs.
Ready to upgrade your payment system? Contact Electronic Money Company today at 505-362-0837 for a customized solution that works for your business! We specialize in roofing and contractor businesses.
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