Words: Libby James, owner, Merchant Advice Service

The problem with accepting card payments in the kitchen and bathroom industry is that it is not as straightforward as other retail outlets. Some customers part with thousands of pounds upfront, much earlier than when their dream kitchen is delivered and fitted.

For most card processors, that gap between ordering and fulfilment adds an additional risk factor. The timing gap, along with the high transaction values and the requirement to integrate payment systems with complex design, ordering, and electronic point-of-sale (EPOS) software, limits many KBB retailers when applying for merchant services.

And the medium risk label associated with kitchen and bathroom outlets can make finding the right payment partner surprisingly difficult, even for established, reputable businesses.

So, why are card payments so challenging in the KBB sector, and what can businesses do to mitigate this risk while maintaining a high customer confidence?

Understanding ‘medium risk’

When a business applies for a merchant account, the acquirer calculates its risk profile, which is essentially the likelihood of resulting disputes, otherwise known as “chargebacks”.

Industries where there is a long delay between taking payment and delivering goods are instantly considered higher risk. That’s because if the business closes down, changes suppliers, or has delivery problems, it could be left to the payment processor to refund the customer.

For KBB retailers, this is just the way the model works. Projects can take six to twelve weeks or longer from the time of confirmed order to completion, especially when bespoke designs or imported materials are involved. Then add installation scheduling, third-party suppliers, and large ticket sizes into the mix, and the risk equation is a tough one to balance.

Most mainstream acquirers flag any transaction with fulfilment delays over 30 days as “medium risk,” even if the merchant has an excellent reputation and a proven track record. 

Integration challenge

Beyond risk classification, technology is another barrier. A modern KBB business relies on an interwoven tapestry of systems: from quotation and design tools to stock management and customer portals.

Most use industry-specific platforms, such as Cyncly or ArtiCAD, for order management. Others integrate their online presence with integrated EPOS systems in showrooms. The problem is, not every payment gateway works with these specialised software tools.

This creates a painful trade-off. The retailer often has to select between either utilising some generic payment provider that doesn’t integrate properly, causing extra admin or reconciliation errors, or  locking themselves into a bad or too expensive provider simply because they’re the only one that “fits” their tech stack.

In an age where seamless customer journeys are key, mostly for high-value home projects, this limitation can stifle growth and complicate back-office efficiency.

Administration and chargebacks

Card settlements are hugely important in consumer trust. Clearly, customers need to be confident that their deposit is secure, especially when they’re paying thousands before they see any goods.

But the very same mechanism which protects customers, through the chargeback process, can give the greatest headaches of all to merchants.

Due to the elongated completion cycle, cardholders will sometimes initiate disputes for which the merchant has no culpability. Perhaps a delivery date slips due to manufacturing delays, or installation is delayed. From the acquirer’s perspective, every chargeback increases the merchant’s risk profile.

Some acquirers also make this somewhat more equitable by holding back a rolling reserve, which is a percentage of funds for a set time to cover refunds. Sensible protection, but it may pinch cash flow for smaller retailers or those working on a raft of projects.

Compliance and security 

Add to the complexity: compliance. Every point the card data touches, from the online deposit page to the in-store terminal, must be compliant with the Payment Card Industry Data Security Standard (PCI DSS).

This may be challenging for businesses using many interconnected systems that handle customer information in different ways. One gap in the integration and the business will be exposed to data security gaps or fines for non-compliance.

It works with a payment partner that offers end-to-end PCI compliance or puts forward a gateway that tokenises card details, so sensitive data is never in your servers; both the associated risk and administrative burden go down drastically.

Essentially, it means finding a financial services provider that understands the peculiarity of the KBB sector. The cheapest rates on paper often don’t tell the full story, particularly once you factor in risk adjustments, reserves, and integration costs.

The financial future

Fortunately, the market is changing. Specialist acquirers are starting to adapt solutions for medium-risk merchants, and embedded payment technology within KBB software platforms is becoming increasingly fashionable.

These integrations make deposits easier to take, staged payments easier to manage, and accounts easier to reconcile without data re-entry or system switching. Over time, this will reduce perceived risk, maybe even make rates more competitive for established retailers.

It may be that the kitchen and bathroom industry can never be considered “low risk” in terms of payment, but this does not mean they must live with rigid or antiquated solutions. 

By better understanding the perspective of the acquirers and by selecting partners who specialise in the deferred-delivery industries, KBB retailers can ensure card payments will protect their customers and preserve their cash flow.

What to look for in a payment partner:

• Experience with delayed delivery industries. Operators accustomed to furniture, home improvement, or build-to-order industries will be more flexible.
• Integration compatibility: Make sure that the gateway supports your EPOS, CRM or ordering software.
• Settlement structure. Ask whether split settlements or rolling reserves apply, how they affect cash flow.
• Onboarding support and customer service are also available. Merchants considered medium-risk often require assistance with providers for documentation and ongoing compliance reviews.