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Payment Options for Handymen

Should You Take Credit Cards?

Yes, and its almost by default. Because you should never take cash (more about that later) and because there will be some customers you can't trust enough yet to take a personal check from, credit cards are your last option. You aren't going to ask people to pay you with a money order, right?

To accept credit cards you are first going to have a merchant account. Check with the bank where you have your checking account to see if they offer them. They may give you a reduced rate, and it is always better to be able to go in and talk to real person that you know to solve a problem than to deal with an out of state company.

If you have bad credit, you may not be able to get a merchant account. To make the application, you will need a checking account, a letter from an officer of the bank where your checking account is held and a copy of your business license. Be patient... getting this all set up can take a bit of work. Once it is set up, expect to pay about $30 a month just for the priviledge of being able to accept credit cards, and then to pay a fee of up to 3% off every transaction. Now you know how Visa and Mastercard got so profitable.

Be sure to ask about your options for calling in credit card transactions, mobile transactions, and any other options you have for processing people's card either from your truck or at their coffee table. The coffee table is better, by the way - most people get pretty nervous if you walk off with their credit card, no matter if it is standard practice in restaurants.

Should You Take Personal Checks?

Yes, but some handymen and other service people have a policy of not taking personal checks from first-time customers. If you know the person you're working for, its not as big of a deal, but if you don't know them, consider that if the check is bad, you a) have just done a lot of charity work or b) will get to call the customer back and revisit them to get a real check, and if that fails you will have to visit the local police to press charges, and you may have to appear in court. Its a lot of work to deal with a bad check.

At the very least, protect yourself by having everyone who writes you a check put their phone number and their driver's license number (and state issued) on their check. If you can't prove who it was that signed the check, the police can't help you if the check is bad.

Never Take Cash

Why not? Because it screams "tax cheat" and it makes you look extremely unprofessional. After all, if you'd cheat Uncle Sam, you'd cheat your customers, too. It also makes for messy record keeping, and for a situation of "he said, she said" if someone claims they paid you and you don't remember ever getting paid.





More articles about starting a handyman business:

How to Start a Handyman Business

Are You Cut Out to Be a Handyman?

Tools for a Handyman Business

Payment Options for Handymen

How To Advertise a Handyman Business

Customer Service Tips for Handymen

Choosing a Name for a Handyman Business

Record Keeping Basics for Handymen

Being a Handyman Versus Having a Handyman Business or a Franchise

Getting a Website for Your Handyman Business

Getting Paid Upfront: Deposit Policies for Handymen

How Much To Charge Per Hour

Should You Charge by the Hour, or by the Job?

Insurance for Handymen

The Handyman Guide: How to Fix and Build 1000s of Things Around the House