If you're ready to improve the speed, efficiency, and security of your payment process but can’t get past the challenges of digitization, we're here to help. Read on for some of the biggest challenges of digitizing your construction payment systems and how to overcome them.
What are digital payments?
Digital payments move money from one person or company to another electronically – without using cash, check, or other tangible payment methods. Electronic payments include bank transfers, credit cards, or mobile money.
There are many reasons digital payment methods are gaining traction in the construction industry, including reducing the risk of fraud, making sending and receiving money faster, and reducing time-intensive and error-prone manual processes.
What are the challenges of switching to digital payments?
As with any change, switching to digital tools can involve some growing pains. Some challenges keep many contractors stuck in their old ways of doing things, but there are ways to get around the hurdles to improve your construction finances.
Training and adoption of digital tools
There is no sense in signing up for new payment solutions if nobody on your team understands or wants to use them. Likewise, digital transformation takes time and money. You're taking a risk by putting in the effort if the product will not be available or valuable to your company in the future.
To minimize and justify the risk, choose payment technology that will immediately benefit your company. Early wins will turn your employees into quick converts and spur further improvements. The immediate return on investment will help to offset any costs related to the switch.
Construction digitization can be done without reinventing the wheel. Make the transition easier by using a payment processing solution that integrates with existing financial systems so office staff doesn't have to learn entirely new business processes. Truss integrates with your QuickBooks Online account, so you can import unpaid invoices and choose to automatically send payment requests through Truss to users with outstanding invoices. Incoming payments through Truss are automatically marked paid in your QuickBooks Online account.
Visibility into construction finance
Digital systems are invisible, while you can hold cash and checks in your hands. That invisibility can lead to concerns about the certainty of transfers landing in the desired accounts.
A check is a physical object, and the US mail is a time-tested and federally-run organization, so contractors may feel increased security in posting a check to their trades or suppliers. However, checks through the mail can be subject to loss and delays, not to mention the holding period during which the recipient can't access the funds.
Business owners can take comfort that while they are invisible, digital systems may be more predictable than a check sent by mail. Truss allows you to track payments from the time you hit send right up until the funds settle in your vendor’s account.
Choose a fast and highly transparent digital system so you can keep eyes on the funds going into and out of your account.
Security concerns around new technology
Many people still use checks, especially those for large payments, because they think checks are more secure.
However, checks remain the payment method most vulnerable to fraud. Reports of potential check fraud nearly doubled in 2022 over the prior year. Nearly two-thirds of businesses reported facing check fraud in 2022. Their physical nature makes checks so vulnerable to this type of misuse.
Solve security concerns by using digital payment systems that go the extra mile to ensure the safety of your money. Truss offers FDIC insurance of up to $3M - provided through Thread Bank; Member FDIC1 - and stringent controls on customer data provide bank-grade security for your funds every step of the way.
Digital payment limitations
Contractors regularly make very large payments to their trades and suppliers. Some digital payment methods like Zelle and Venmo are impacted by daily or weekly transaction limits, leaving users to make larger payments in instalments, which can be challenging to keep track of. Checks can cover these expenses in a single payment.
Wire transfers, another digital transfer method, can move large amounts in one transaction but are expensive at around $26 per transfer. ACH transfers are common for repeated payments like staff payroll but require an extensive setup process which makes them poorly suited for one-off payments.
Truss is an online payment platform that overcomes these common hurdles to digital payments. Make high-value electronic payments without the complex setup and high fees associated with ACH and wire transfers.
What are the benefits of digital payments?
Adopting new technology can overwhelm a business and its employees, but the right digital payment solutions can make construction companies more efficient and secure. How can digital payments make a difference in your business? They can offer:
Faster transfers & improved cash flow
Never wait for a check to clear again. General contractors depend on steady cash flow to keep projects moving, so it's important to cut payment processing time wherever possible. With Truss, you can access and use funds as soon as your customer hits send on a payment request.
Better efficiency
Save the time it takes to print, sign, and send checks, then reconcile them with your accounts. Truss streamlines manual processes and reconciliation processes to save your office staff time and effort.
More data
Tracking is easier with digital payments, especially when your payment system integrates with your bookkeeping system.
Increased security
Fully compliant, bank-level security, encryption, and data safety. Not a flimsy paper envelope.
Scalability
Once you've dialled in your digital payment system, the sky is the limit on how you scale the process.
It's time to get past the challenges of digitizing payment processes in your construction business. The best part is there are no transfer fees, monthly costs or setup charges. Get started free with Truss today!
