Offering online payments reduces average collection time from 30+ days to under 7 days for home service contractors. The faster you get paid, the better your cash flow - and cash flow is what keeps contractor businesses alive.

Processing Options

Square

Simple, transparent pricing with no monthly fees.

Rates: 2.6% + $0.10 in-person. 2.9% + $0.30 online.

Features: Free invoicing, POS terminal, online store, payroll integration.

Best for: Solo operators and small teams wanting simplicity.

Stripe

Developer-friendly with strong online payment capabilities.

Rates: 2.9% + $0.30 online. 2.7% + $0.05 in-person.

Features: Custom invoicing, recurring billing, ACH payments (0.8%), dispute management.

Best for: Contractors with custom software or web-based booking.

CRM-Integrated Payments

Jobber, ServiceTitan, and Housecall Pro all offer integrated payment processing.

Rates: Typically 2.6-3.5% depending on plan.

Advantage: No separate system. Invoice and collect from the same platform.

Housecall Pro InstaPay

Same-day deposit for a 1% surcharge on top of standard processing.

Best for: Contractors who need cash flow speed.

ACH Payments

ACH bank transfers cost 0.5-1% vs 2.6-3.5% for credit cards. For a $5,000 HVAC installation, that's $25-50 vs $130-175 in fees. Worth offering as an option on larger jobs.

Best Practices

1. Accept credit cards - the convenience is worth the 2.6-3.5% fee

2. Offer ACH for jobs over $1,000

3. Invoice on-site before leaving the job

4. Enable autopay for recurring services (maintenance agreements)

5. Set up automated payment reminders for overdue invoices

Don't let processing fees scare you away from credit cards. Getting paid in 3 days instead of 30 days improves your cash flow more than the 3% fee costs you.

Worked Example: Payment Processing Cost vs Cash Flow

$30,000/month in revenue. Check/cash only: average 30-day collection = $30,000 always outstanding. Online credit card payments (2.9%): $870/month in fees, but average 3-day collection = $3,000 outstanding. Cash flow improvement: $27,000 freed up. ACH for jobs over $1,000 (0.8%): if 40% of revenue is large jobs = $12,000 × 0.8% = $96 in ACH fees vs. $348 in credit card fees. Savings: $252/month. Offer both and let customers choose.

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What Not to Do

  • Don't avoid credit cards to save on fees. The 2.6-3.5% fee costs less than the cash flow problems caused by slow-paying customers. Getting paid in 3 days instead of 30 is worth 3%.
  • Don't skip ACH for large jobs. On a $10,000 install, credit card fees are $260-350. ACH is $50-80. Offer ACH as an option and save $200+ per large job.
  • Don't forget to offer autopay for maintenance agreements. Customers who set up autopay renew at 85-90% vs. 60-70% for manual renewals. Autopay reduces churn and collection work.
  • Don't use a processor that doesn't integrate with your CRM. Disconnected payment systems create manual reconciliation work. Your CRM, invoicing, and payment processing should be one system.

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