Swipe, Tap or EFT? — Why Card & Digital Payments Are (Mostly) a Win for Plumbers, Wood-Deliveries & Other Home-Service Contractors in SA
- The Guy
- Jun 22
- 3 min read
South Africans don’t only pull out the plastic at tills, more of us expect the guy in the bakkie to have a card reader too. But with merchant-service fees sitting around 2½ %–3 %, is it worth it for small, mobile contractors? Let’s unpack the numbers, the law and the negotiables.
First, the legal ground-rules
You may not tack on a “card surcharge” after the fact. Section 23(6) of the Consumer Protection Act bars any supplier—goods or services—from charging more than the price that was displayed or quoted up-front.(cgso.org.za)
Dual pricing is fine. You can quote R2 000 (card) or R1 940 (EFT/cash)—both rates are disclosed before the job starts, so the choice is the customer’s.
Card-scheme rules mirror this: Visa/Mastercard contracts say the card price must be included in the headline amount. Violate that and your bank can pull the machine.
What the swipe really costs—and saves
Cost/Benefit | Rand impact for a typical R2 500 plumbing job | Source |
Card fee (Yoco Core 2.5 % + VAT) | ≈ R72 | (yoco.com) |
QR fee (SnapScan starter 2.95 % + VAT) | ≈ R85 | |
PayShap instant EFT | R0–R7.50 (bank-dependent) | |
Cash-handling risks (theft, CIT, bank charges) | ± R20–R25 per R2 500¹ | (industry averages) |
Late-payment drag (chasing invoices) | SMEs lose weeks of cash-flow every year |
Cash costs are lower for a sole-trader than for a supermarket, but still include deposit fees, mileage to the bank, and robbery risk.
Bottom line: The ± R72 card fee is often cheaper than finance-charges, follow-ups and written-off debt when a client “will EFT later”.
Revenue upside most contractors miss
Faster cash-flow: funds land in 1–2 business days (Yoco, iKhokha) or instantly (PayShap).
Fewer “I don’t have cash” walk-aways: Visa’s 2024 SME study found 29 % of cash-only firms lost sales because customers had no cash on hand.
Trust factor: branded POS devices signal legitimacy; many homeowners prefer paying digitally for traceability and warranties.
Add-on sales: Wood-delivery outfits that started taking tap-to-pay reported bigger average loads because “it was just a card tap away”. (Visa SME interviews, 2024).
Real-world proof
Paperless plumbing fleet — Gauteng firm converted vans to mobile POS; “plumbers are equipped with Yoco devices for immediate payment wherever possible.”(plumbingafrica.co.za)
Payment-link boom — Contractors now text a Yoco or SnapScan link before arriving; 60 % of invoices are settled before they pick up a spanner.(yoco.com)
Yes, the fee is negotiable (at least partly)
Aggregator vs. direct acquiring: Once turnover tops ± R200 k/month, ask the bank for “interchange-plus” pricing or Yoco/iKhokha for a custom rate—many drop below 2 %.(yoco.com)
Bundle services: Some banks waive the POS rental if your business banking and PAYE run through them.
Use PayShap for high-ticket parts: PayShap caps fees (or is free) above R1 000 at several banks; combine it with card for convenience items.(businesstech.co.za)
Practical playbook for contractors
Step | Why it matters | How to execute |
Quote two prices | Keeps you CPA-compliant & transparent | “R4 500 card / R4 350 EFT if paid on booking.” |
Offer a payment link on booking | Secures parts deposit, slashes no-shows | Yoco Link, SnapScan Link, bank EFT with clear ref. |
Carry an all-network 4G card reader | No Wi-Fi dependency on site | Devices like Yoco Khumo include data.(yoco.com) |
Batch high-value items into PayShap | Saves % fees on pricy boilers, stoves | Present a QR or cellphone-number ShapID. |
Reconcile digitally | Speeds VAT & tax records | Auto-export CSVs from your PSP dashboard. |
Should every Contractor accept cards?
Yes, if your typical job is > R500 and you spend any time chasing payment.
Maybe not if you only sell firewood on a rural roadside at R40 a bundle—PayShap or cash may suffice.
Either way, bake the cost in. A 2–3 % fee is just another input like petrol or copper piping—factor it into your hourly rate rather than surprising the customer.
Final word
For mobile plumbers, handymen, gas installers, garden-service crews and wood suppliers, card and real-time digital payments flip the script from “cost” to “cash-flow accelerator.” The trick is to price transparently, cherry-pick the cheapest rails for each job, and negotiate the margin you can control. Do that, and the little black machine in your toolbox will pay for itself many times over.
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