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How BlueTape Payment Tool Can Help You Improve Your Margins

BlueTape’s recently launched payment tool is designed for the construction supply chain. This solution is created for the needs of lumberyards and other building materials suppliers and it helps them lower their credit card processing fees and increase their margins.
August 18, 2021
BlueTape payment tool
In this article, we want to take a deeper dive into the details of BlueTape payment and what it means for your business.
How does the BlueTape solution work?
BlueTape is a fully online solution that requires no downloading, installing, or training. You can quickly sign up and create an account. Building suppliers, dealers, and distributors use BlueTape to send invoices to their customers via text message and receive payments fast. Their customers will have multiple payment options, including credit card, ACH, and Buy Now Pay Later.
What do BlueTape payments and credit card processing mean for your business?
  • It is all about costs
In a study by the LBM Journal, most lumberyards and dealers agree that the high cost of credit card processing is affecting their bottom line. No matter the size of your business, lowering your credit card processing costs can help improve your margins and help your business succeed. There are multiple solutions when it comes to managing the high costs of credit card processing. For example, some construction material suppliers offer discounts on their cash transactions. While this helps with managing these high costs, it comes with its own set of problems. Managing high levels of cash can be troublesome because it consumes employee’s time and resources and it comes with associated bank fees for cash deposits. The same can be said about checks. When using checks, deposits can take time to deposit, which affects your business’ cash flow. A good alternative for check and cash payment is ACH transactions. It is easy and fast, all at a low cost. You get paid directly to your bank account so there is no need for employees to manage checks and cash. BlueTape’s seamless integrations make using the platform easy for customers to pay on their phone with just a few taps.
  • Compete with big box stores
Splitting the cost of credit card processing might be the right solution for your business and most customers understand that you are merely sharing the cost. This will cause an issue with customers when you are competing with big box stores that have enough margin to cover their cost of credit card processing. In this case, lowering your overall cost of processing will help with your profit margin and lower your customer’s share of the cost as well.
  • Pay from anywhere option
In the aftermath of Covid, customers are getting used to a higher level of customer service, including at-home deliveries, store pick-ups in their cars, and the convenience of ordering and paying for everything on their phones. It is also a time-consuming task for contractors with no back office to manage their invoices, write checks, and keep track of all payment deadlines. Offering them a tool that can help them pay from anywhere, including their truck, job site, or anywhere else on the go, will improve their experience. BlueTape gives you and your customers the freedom to access payments from wherever, whenever so that you can run your business.
  • Managing card-not-present (CNP) transactions
Transactions when cards are not present typically have higher credit card processing fees associated with a higher level of risk for these transactions. When cards are not present, the possibility of fraud is higher and banks sometimes falsely flag these transactions as fraud. Using a secure payment platform that doesn’t rely on CNP transactions will help lower the risk of fraud and false credit card declines.
  • Cash flow
It goes without saying that getting paid fast and an improved invoice collection system will help you expand your cashflow. A healthy cashflow is the livelihood of any business and it becomes increasingly more important at a time of high price fluctuation or instability in the market. With BlueTape, you don’t have to wait for invoices to go out and to receive checks and deposit them.
  • Accounts receivable management
BlueTape is designed to help run your business smoother and with less hassle. When it comes to small businesses, small changes can have a huge impact. BlueTape helps you automate your invoice collection and run your business more efficiently. Contact us to learn more about BlueTape payment solution and how we can help you improve your margins and cut payment processing costs.
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