Getting paid in construction isn’t quite as simple as your customer hitting “Submit Payment.” Payment delays are common, and while many are still requiring paper checks for payments, 82% of contractors are willing to use digital payments to accelerate their cash flow, according to Built. Electronic payment systems are the solution, and ACH is leading the way.
There’s a few factors that matter most when it comes to evaluating payment options in construction: time, cost, and security. ACH (Automated Clearing House) checks all the boxes and is ideal for suppliers and contractors—everyone gets paid faster, it costs less than paper checks or electronic wires, and reduces payment risk.
While ACH is the ideal payment solution for construction companies, that’s not to say it’s without its flaws. Slow processing times and limited real-time authorization mean that it can be difficult to feel 100% confident that a customer’s payment will go through. A common result is return code R01, or insufficient funds. With payment delays so common in construction,everyone is waiting on someone else to get paid, so account balances are constantly fluctuating. One R01 return means a difficult conversation—multiple returns is the sign of a broken system where everyone’s waiting on someone else, and nobody moves forward.
Pay By Bank 2.0 offers a real solution. Built with Plaid verification, it adds confidence before a payment is even initiated and reduces payment issues at the source. Plaid verifies the customer’s bank account connection and can provide balance information, which can reduce the likelihood of insufficient funds returns. For high-value payments, Plaid verification is automatically required, giving you an extra layer of protection when it matters most.
For customers, the payment experience remains simple, secure, and familiar. They can verify their bank account and complete the transaction in minutes, creating a smooth experience. A secure token is created on the first transaction, making repeat payments faster and easier for returning customers.
Added confidence to every payment, so you can focus on what actually matters. Book a demo today.
