More customers expect to pay a plumber, electrician, or handyman the same way they pay for everything else: with a card or a phone. If you only take checks and cash, you will chase more payments and sometimes lose a job to someone who takes cards.
This guide covers the practical options for a small trade business, what card processing really costs, the rules around passing fees to customers, when bank (ACH) payments make more sense, and how to handle deposits by card. Fee and surcharge rules change and vary by state and card network, so treat this as a starting point and confirm the current rules before you change how you charge.
Your three main options
| Method | How it works | Good for |
|---|---|---|
| Payment link on the invoice | Customer clicks a "Pay" link from an emailed invoice and pays on a hosted page | Most service work; customer pays after you leave |
| Card reader or tap to pay on your phone | You take the card in person at the end of the job | Customers who want to pay on the spot |
| Manually keyed card | You type the card number into a processor app or virtual terminal | Phone orders; usually the least preferred option |
For most solo trades, a payment link on the invoice is the simplest place to start. You send the invoice from the truck, the customer pays from their phone, and the money goes to your processor account. You never handle or store card numbers yourself, which keeps you out of most card-security headaches.
Avoid writing card numbers on paper or taking them over text. If a customer insists on reading you a card over the phone, enter it directly into your processor and do not keep a copy.
What card processing actually costs
Card processors charge a fee on every transaction, usually a percentage of the payment plus a small fixed amount. Rates differ by processor, by card type, and by whether the card was tapped in person or entered online. Stripe, for example, publishes its standard US card pricing on stripe.com/pricing; check current rates there or with whichever processor you use.
To see what fees mean for your business, run a quick example. Say your processor charges 3% plus 30 cents (an illustrative number, not a quote from any company). On a $400 drain-cleaning invoice, the fee is $12.30 and you receive $387.70. On a $6,000 panel upgrade, the fee is $180.30. The percentage matters far more on big jobs than on small ones.
- Build it into your prices. The cleanest approach. If cards cost you about 3% on average, your rates should cover that the same way they cover fuel and insurance.
- Offer a cheaper method for large jobs. Bank transfer (ACH) or check on big invoices can save real money. More on ACH below.
- Pass the fee on. Possible in many places, but the rules are strict. Read the next section first.
Surcharges, convenience fees, and cash discounts
These three terms get mixed up, and the differences matter because card networks (Visa, Mastercard, American Express, Discover) and some states regulate them.
| Term | What it means | Key points |
|---|---|---|
| Surcharge | An extra percentage added when a customer pays by credit card | Network rules cap the amount and require notice and disclosure; generally not allowed on debit or prepaid cards; some states restrict or ban it |
| Convenience fee | A fee for paying through a non-standard channel, such as online when you normally take payment in person | Network rules typically require it to be a flat amount and not apply to your normal payment channel |
| Cash or check discount | A lower price for paying by cash, check, or bank transfer | Generally more widely permitted than surcharges; the discount must be clearly shown |
Before you add any card surcharge or fee, check three things: your state's current law on credit card surcharges, each card network's current surcharge rules (including any advance notice to the network or your processor), and your processor's own terms. Rules differ by state and change over time. This is general information, not legal advice.
If you do surcharge where it is allowed, disclose it before the customer pays: on your quote, on the invoice, and at the point of payment. Show it as its own line. And remember the debit card issue: many customers pay with debit cards, which usually cannot be surcharged, so your system needs to handle that correctly.
For many small trades, the simpler path is to price card costs into your rates and offer a check or bank discount on large invoices. It avoids rule-checking every time something changes.
ACH and bank payments
ACH is a bank-to-bank transfer. Many processors offer it as a pay option next to cards. Fees are often lower than card fees and sometimes capped, which makes ACH attractive for large invoices. Check your processor's pricing page for the current numbers.
- Slower to settle. ACH payments can take several business days to clear, versus faster settlement for most card payments.
- Can bounce. A payment can be returned for insufficient funds or a closed account, sometimes days later. Do not release a lien waiver or final paperwork until the funds have actually cleared.
- Good fit for: big remodel draws, commercial clients, property managers, and repeat customers you know.
ForgeBill invoices can include a Stripe payment link that accepts card, Apple Pay, Google Pay, and supported bank methods, with payouts going to your own Stripe account. Stripe's processing fees apply, and you can optionally have the client pay ForgeBill's 0.5% fee.
Taking deposits by card
Collecting a deposit by card is common and convenient, especially for special-order materials. A few practical points:
- Put the deposit amount, what it covers, and your refund policy in writing on the quote before you charge it.
- Check whether your state limits deposit size for home improvement work. Some do. Our guide on how much deposit to ask for covers the common approaches.
- On a large deposit, consider asking for ACH or check to reduce fees.
- Show the deposit as a payment on the final invoice so the balance due is clear.
Example: a $5,000 bathroom job with a 30% deposit. The customer pays $1,500 by card when they approve the quote. The final invoice shows $5,000 total, $1,500 paid, $3,500 balance due.
Protecting yourself from chargebacks
A chargeback happens when a customer disputes a card payment with their bank. The bank pulls the money back while it reviews the case, and you usually pay a dispute fee. Your best defense is documentation:
- A written, accepted quote with a clear scope.
- Written approval for any change orders.
- Before and after photos of the work.
- A completion sign-off, or at least a dated note that the job was finished.
- An invoice that matches what was agreed. See what to include on a contractor invoice.
Respond to any dispute quickly with those documents. Processors give you a deadline to submit evidence.
Setting it up this week
- Pick a processor and connect it to your bank account.
- Decide your fee policy: absorb, discount for cash or bank, or surcharge where allowed after checking the rules.
- Add your accepted payment methods and payment terms to your quote and invoice templates. The free invoice generator is a quick way to see a clean layout.
- Send your next invoice with a pay link and see how customers respond.
- Set reminder habits so unpaid invoices do not sit. See how to get paid faster as a contractor and contractor payment terms and late fees.
Frequently asked questions
Can I charge customers a credit card fee?
In many places you can add a credit card surcharge, but card network rules cap it and require disclosure, it generally cannot apply to debit cards, and some states restrict or ban it. Check your state law, the card network rules, and your processor terms before adding one.
What is the difference between a surcharge and a convenience fee?
A surcharge is an extra charge for paying by credit card. A convenience fee is a charge for using an alternative payment channel, such as paying online when you normally take payment in person. Card networks treat them differently, so confirm the current rules before using either.
Is ACH cheaper than accepting credit cards?
Often, yes, especially on large invoices, because ACH fees are frequently lower or capped. ACH is slower to clear and payments can be returned, so wait until funds clear before treating a big invoice as paid.
Do I need a card reader to accept cards as a contractor?
No. You can send an invoice with a payment link and let the customer pay online from their phone or computer. A reader or tap-to-pay app is useful if customers often want to pay on the spot.
Free tools for this
- Free invoice generator
Make a contractor invoice PDF in your browser. No signup or watermark.
- Job price calculator
Work out labor, materials, markup, tax, and deposit for a job.