Managing client credit card payments for trade purchases is a common challenge in interior design. Many clients want to use their credit card for vendor purchases, either for reward points or perceived cost savings. However, this raises business concerns—should you allow it, and if not, how do you enforce your policy?
Let’s explore the best ways to handle this situation while protecting your business and maintaining healthy client relationships.
💳 Why Clients Want to Use Their Credit Card for Trade Purchases
At first glance, allowing clients to use their credit card for direct vendor payments might seem harmless. But as many designers have learned, it can create major problems, including:
- Loss of markup or commission—Clients may start questioning pricing or expect wholesale costs.
- Complicated order tracking—If they pay the vendor, issues like returns, damages, and missing items can become a logistical nightmare.
- Broken vendor relationships—Some vendors don’t allow third-party payments from non-trade accounts.
Many designers believe that full transparency isn’t necessary because interior design businesses operate just like retail stores. OliviaWestbrooksinteriors shared her perspective on why designers shouldn’t have to justify their pricing structure:
“This may be an unpopular option, but I do not understand why we are expected to be transparent about our product pricing. When people shop at furniture stores, let’s say RH for example, do they ask the sales team to reveal their costs & profit margins? Do they ask them to pay their vendors directly? No, they don’t. So why do people think that it’s ok to do that with designers? I explain to my clients that I operate like a retail store, only they get the benefit of receiving a one-of-a-kind, curated design tailored just for them with products sourced from many different places. I do the procurement. I pay my vendors. They pay my invoice. Just like a retail store. End of story. And charge what you want! None knows your operating costs or your business goals to tell you what percentage is right for you. As long as you’re not gauging people (exponentially over retail costs), charge what works for your business! I’m sorry, but after dealing with this question for 21 years in the industry, I’m exhausted.”
🛑 Setting Clear Policies in Your Contract
The best way to avoid payment disputes is to set expectations upfront. Your contract should explicitly state how purchases are handled.
💡 jsquaredhomedesigns shared this policy:
“Your contract should include that all purchases will be made through your business. Therefore, all purchases are made on your accounts—they are not open to the public. The client can pay your invoice with their credit card, but they cannot pay the vendor directly.”
✅ How to Implement This:
- Define procurement terms—State that all purchasing goes through your firm.
- Allow credit card payments—But only on your invoice, not directly to vendors.
- Include processing fees—If clients want to pay with a card, pass on the transaction fees.
🏪 You Are a Retail Business, Not a Middleman
Many designers emphasize that they are retailers, not personal shoppers. Just as a department store doesn’t disclose its costs, designers shouldn’t either.
💡 sparkinteriorscolorado shared:
“When they go to Macy’s to buy a gown, they pay Macy’s for the gown. It is the same for when they buy a sofa, chandelier, etc., from you. Your business has the retail license, and you are the retailer.”
🔹 Why This Matters:
- Trade pricing exists for a reason—Clients shouldn’t access it directly.
- Designers take on responsibility—Including managing orders, handling damages, and tracking deliveries.
- You deserve to be paid for your expertise—Not just the time spent, but also the value you bring.
🔄 How to Handle Pushback from Clients
Despite a clear contract, some clients will still push back. Here’s how to respond:
🛑 Client: “Can I just pay the vendor directly with my credit card?”
✅ Designer: “Trade accounts are not open to the public. You can use your credit card to pay my invoice, which includes everything from vendors, freight, and procurement fees.”
🛑 Client: “But I want the credit card points!”
✅ Designer: “I understand! You can absolutely pay my invoice with your credit card, and I’ll ensure your purchases are handled smoothly.”
🛑 Client: “I found this cheaper online. Can I just buy it myself?”
✅ Designer: “The benefit of purchasing through me is that I manage the entire process, from ordering to delivery. If any issues arise, I handle them directly.”
💼 What If a Client Insists? Alternative Solutions
If a high-value client is adamant about using their card, consider these compromises:
1️⃣ Charge a Sourcing Fee
Let them pay the vendor, but charge a flat percentage for sourcing and specification work.
2️⃣ Work Only with Exclusive Vendors
Some designers only use brands that don’t sell directly to clients, ensuring their trade pricing stays protected.
3️⃣ Mark Up the Retail Price
If clients demand pricing transparency, increase retail pricing so that your fee is still included.
📌 Final Thoughts: Protect Your Business & Boundaries
Handling client credit card requests for trade purchases can be tricky, but setting clear boundaries will protect your profitability and professional integrity.
✔ Have a strong contract—State that all purchases go through your business.
✔ Allow credit card payments—But only on your invoice, with processing fees included.
✔ Stand firm on pricing—You are a retailer, not a middleman.
✔ Offer alternatives—Charge sourcing fees, work with exclusive vendors, or adjust markups.
At the end of the day, you run your business—not the client. Maintain confidence in your policies, and you’ll attract the right clients who respect your expertise.
👉 How do you handle clients who want to use their credit card for trade purchases? Let’s discuss in the comments!
