Should Your Business Accept Credit Card Payments?

Checkbooks are becoming increasingly antiquated, and there's a high likelihood that most individuals under the age of 35 don't even own one. This means the preferred method of payment for larger investments, such as home remodeling or repairs, is changing. Consultant Michael Stone provides advice on what business owners should do to make payment as easy as possible for clients on Markup and Profit.

I don't think writing a check is old fashioned, but there are so many advantages to using a credit or debit card that it's become the preferred payment method for many.

The risk of losing the funds in a chargeback is low if you take precautions. The biggest concern is fraud, someone using a card without permission. So only accept credit card payments in person, not over the phone. Ask for ID to ensure that the person signing is one who owns the card, and require a signature. If you receive a chargeback from the bank, the bank will take back the funds from you until the chargeback is resolved. You'll be given the opportunity to contest the chargeback. That's when you explain the work you performed and the precautions you took, and send a copy of the signed contract or agreement. It's also smart to take a several photos of the work you completed so you can send them as well. The process can take 3-4 months, which isn't pretty if it's a large amount, but again, your risk is low if you're careful.

There's a basic rule of business: when someone offers you money, take it. Find a way to make it easy.