Accepting credit cards used to mean setting up a merchant account, waiting weeks for approval, and paying confusing monthly fees. Today, contractors can be accepting card payments within hours using modern payment processors.
But not all processors are built the same, and choosing the wrong one can cost you thousands of dollars per year in unnecessary fees or leave your technicians fumbling with payment tools that do not work in the field.
TL;DR
- Stripe and Square both charge ~2.9% + $0.30 per card transaction with no monthly fees
- Square is easier to set up for in-person payments; Stripe offers more developer flexibility
- Field service platforms often bundle payment processing at competitive rates
- ACH transfers (1% or less) save money on large invoices
- Watch for interchange-plus pricing on high volumes — it beats flat-rate after $10K/month
The Three Payment Processor Categories
Before comparing specific providers, understand that contractors typically choose from three types of payment solutions:
1. Standalone payment processors (Stripe, Square, PayPal) Purpose-built for payment processing with no scheduling or invoicing features built in.
2. Field service software with built-in payments Platforms designed for contractors that include invoicing, scheduling, and payment processing as an integrated package. You get fewer choices in processor but better workflow integration.
3. Traditional merchant accounts Banks or payment processors offering dedicated merchant services, often with lower per-transaction rates but monthly fees and contract commitments.
For most contractors under $500K/year in card volume, a modern flat-rate processor integrated into field service software is the right choice.
Stripe for Contractors
Stripe is the most developer-friendly payment processor in the world. If your field service platform is built on Stripe, you benefit from a best-in-class payment infrastructure.
Rates:
- Online card payments: 2.9% + $0.30
- In-person card: 2.7% + $0.05 (with Stripe Terminal hardware)
- ACH direct debit: 0.8% (capped at $5)
Strengths for contractors:
- Excellent ACH support — ideal for large commercial invoices
- Stored card-on-file for repeat customers (great for maintenance agreement billing)
- Automatic billing and recurring payments
- Robust fraud protection
Weaknesses:
- Setting up hardware for in-person payments requires more configuration than Square
- Less intuitive for non-technical users doing standalone setup
For a deep dive, read our guide on Stripe for contractors.
Square for Contractors
Square was built from the ground up for small businesses accepting in-person payments. It is extremely easy to set up and use, which makes it popular with contractors who want something working quickly.
Rates:
- In-person card: 2.6% + $0.10
- Online/manually keyed: 3.5% + $0.15
- Invoice payments: 3.3% + $0.30
Strengths for contractors:
- Extremely simple setup — accepting cards in minutes
- Free card reader included
- Clear, predictable pricing
- Square Invoices app works well for basic field invoicing
Weaknesses:
- Higher rates for manually entered or online payments
- Account holds and sudden account terminations are a known issue (customer service can be difficult to reach)
- Limited integration with contractor-specific workflow tools
PayPal and Venmo Business
Many customers ask to pay via PayPal or Venmo, particularly for smaller residential jobs.
PayPal rates:
- Invoiced payments: 3.49% + $0.49
- In-person: 2.29% + $0.09
Considerations:
- Customer familiarity is high, especially with older demographics
- Not suited for professional invoicing workflows
- Can create reconciliation headaches in your accounting system
- Avoid personal Venmo for business — PayPal has been known to freeze funds when business activity occurs in personal accounts
ACH Bank Transfers: The Best Option for Large Invoices
For any invoice over $1,000, ACH transfer should be your preferred payment method. Here is why:
| Invoice Amount | Credit Card (2.9%) | ACH (0.8%, capped $5) | Savings |
|---|---|---|---|
| $500 | $14.80 | $4.00 | $10.80 |
| $2,000 | $58.30 | $5.00 | $53.30 |
| $10,000 | $290.30 | $5.00 | $285.30 |
On a $10,000 HVAC installation, you save $285 by accepting ACH instead of credit card. Over the course of a year, these savings add up to thousands of dollars.
Most modern invoicing platforms let you include both a card payment link and an ACH payment link on the same invoice, letting the customer choose.
Interchange-Plus Pricing for High-Volume Contractors
If your business processes more than $10,000 per month in card transactions, flat-rate pricing (like 2.9%) is likely costing you more than necessary.
Interchange-plus pricing charges you the actual interchange rate (set by Visa/Mastercard) plus a small markup. For a contractor running $25,000/month in card volume:
- Flat rate (2.9%): $725/month in fees
- Interchange-plus (interchange avg ~1.8% + 0.3%): ~$525/month in fees
- Annual savings: ~$2,400
Processors offering interchange-plus include Stripe (for high-volume accounts), Helcim, and many traditional merchant account providers.
What to Look for in Contractor Payment Processing
When evaluating payment processing for your business, consider:
Transaction fees — the most visible cost, but not the only one
Monthly fees — some processors charge $10–$50/month even with zero transactions
Hardware costs — card readers range from free to $300+
Payout speed — standard is 2 business days; some offer next-day or instant for a fee
Dispute/chargeback handling — how the processor handles customer disputes matters
Integration with your invoicing system — payments should sync automatically to your books; see our guide on QuickBooks integration for field service
Recurring billing support — critical if you offer maintenance agreements; read our guide on recurring invoicing for contractors
FAQ
Can I pass credit card fees to customers? In most US states, surcharging (passing card fees to customers) is legal, but there are rules. You must disclose the surcharge at the point of sale, you cannot surcharge debit cards, and the surcharge cannot exceed your actual processing cost. Some states prohibit surcharging entirely — check your state's laws.
What is the best payment processor for a one-person contractor? Square is the easiest to set up and use. For a solo operator doing residential service, the simplicity is worth the slightly higher rates. As you scale past $10K/month in card volume, explore switching to a lower-rate option.
How do I reduce chargebacks? Require customer signatures on invoices, send detailed receipts that clearly describe work performed, and use billing descriptors that customers will recognize (use your business name, not a parent company name). For more on this, see our invoice dispute resolution guide.
Choose the Right Payment Stack
The right payment processing setup for your contracting business depends on your volume, your mix of in-person vs. invoiced payments, and how important integration with the rest of your software stack is.
See how our platform handles payments end-to-end or explore our pricing.
For the complete invoicing picture, start with our contractor invoicing guide.