Stripe powers payments for many of the field service software platforms contractors use every day. Whether you are accessing Stripe directly or through your invoicing platform, understanding how it works — and how to use it optimally — can save you thousands of dollars per year and get your invoices paid faster.
TL;DR
- Stripe charges 2.9% + $0.30 for card payments, 0.8% (capped at $5) for ACH
- Use ACH for invoices over $500 to cut processing fees dramatically
- Store customer cards on file for repeat customers and maintenance billing
- Set up instant payouts for same-day access to processed payments
- Stripe's chargeback protection requires documentation — maintain records for every job
Stripe Fees: What You Actually Pay
Stripe's pricing is transparent, but it has nuances worth understanding.
Credit and debit cards:
- Online (card not present): 2.9% + $0.30 per transaction
- In-person (Stripe Terminal): 2.7% + $0.05 per transaction
ACH Direct Debit (bank transfer):
- 0.8% per transaction, capped at $5.00
International cards: Additional 1.5% for cards issued outside the US
Currency conversion: 1% fee when the card currency differs from your account currency
Instant payouts: 1% fee (minimum $0.50) to access funds immediately instead of standard 2-business-day payout
Disputes (chargebacks): $15 fee per chargeback dispute, refunded if you win
For a contractor processing $30,000/month in card payments:
- All credit cards: $30,000 × 2.9% + (100 invoices × $0.30) = $900/month in fees
- 50% ACH, 50% credit card: ($15,000 × 2.9% + 50 × $0.30) + ($15,000 × 0.8%) = $600/month in fees
- Savings from shifting to ACH: $300/month, $3,600/year
Setting Up Stripe for Your Contracting Business
If you are using a field service platform that integrates Stripe, the setup is handled within that platform — you connect your Stripe account via OAuth and the platform handles the rest.
For direct Stripe setup:
Step 1: Create a Stripe account Go to stripe.com and create a business account. You will need your business name, EIN (or SSN for sole proprietors), business address, bank account for payouts, and a government-issued ID.
Step 2: Configure your business settings
- Set your statement descriptor (what appears on customer credit card statements — use a recognizable business name, not your legal entity name if they differ)
- Set your payout schedule (daily, weekly, or monthly — daily rolling is simplest)
- Configure your tax settings if you charge sales tax
Step 3: Enable payment methods
- Cards: Enabled by default
- ACH Direct Debit: Enable in your Stripe Dashboard under Payment Methods
- Apple Pay / Google Pay: Requires a verified domain if using Stripe's hosted pages
Step 4: Set up the customer portal (optional) Stripe's customer portal lets your clients view their invoice history, update payment methods, and manage stored cards — reducing support calls.
Step 5: Test with a small transaction Process a $1 test payment using Stripe's test mode first, then a real transaction to confirm everything works end to end.
ACH Payments: Your Best Tool for Large Invoices
ACH Direct Debit is Stripe's lowest-cost payment method and is ideal for any invoice over $500. Here is how the math works:
| Invoice Amount | Card (2.9% + $0.30) | ACH (0.8%, max $5) | ACH Savings |
|---|---|---|---|
| $300 | $9.00 | $2.40 | $6.60 |
| $750 | $22.05 | $5.00 | $17.05 |
| $2,500 | $72.80 | $5.00 | $67.80 |
| $10,000 | $290.30 | $5.00 | $285.30 |
For commercial clients paying large invoices monthly, ACH saves hundreds of dollars annually per client.
Important consideration: ACH payments take 3–5 business days to settle, versus immediate authorization for cards. For cash flow purposes, factor in this delay when you present payment options.
ACH and risk: Unlike cards, ACH payments can result in a return (equivalent to a failed payment) even days after you think the payment is successful. Stripe flags high-risk ACH customers, but for new clients paying large invoices via ACH, consider waiting for the settlement to confirm before scheduling additional work.
Storing Customer Cards on File
For repeat service customers and maintenance agreement clients, storing a payment method on file is one of the most powerful billing tools available.
How it works:
- Customer provides their card once and authorizes recurring or future charges
- Their card is stored securely in Stripe's vault (you never store raw card data)
- You charge the stored card via your invoicing platform or Stripe directly
Benefits:
- Maintenance agreement billing becomes fully automatic
- Reduces checkout friction for repeat customers
- Eliminates the need for customers to enter payment information each time
Authorization language: When collecting a stored card, your authorization form must clearly state what charges you may make. For recurring billing, include the amount, frequency, and cancellation terms. For on-demand service, state that the card may be charged for future service calls.
Handling Chargebacks
A chargeback occurs when a customer disputes a charge with their bank rather than contacting you directly. Stripe charges $15 per chargeback and the disputed funds are held pending resolution.
To win chargeback disputes, submit:
- Signed work order or invoice with customer approval
- Photos of completed work
- Communications showing the customer knew about and agreed to the charge
- Proof of service delivery (job completion timestamp, technician notes)
This is why on-site digital signatures on invoices are so important. A customer who signs the invoice on a tablet cannot easily win a chargeback claiming they did not authorize the charge.
For prevention, use a statement descriptor that matches your business name. Chargebacks often occur because a customer sees a charge they do not recognize on their statement.
Instant Payouts
By default, Stripe pays out your card processing proceeds in 2 business days. For contractors who need faster access to funds:
Instant payouts transfer your available balance to your debit card within 30 minutes, for a 1% fee (minimum $0.50).
For most contractors, the 2-business-day standard payout is fine. Instant payouts are valuable when you need to cover an unexpected expense or when you are managing a particularly tight cash flow period.
Enable instant payouts in your Stripe Dashboard under Payouts settings.
FAQ
Can I pass Stripe's fees to customers? In most US states, you can add a surcharge to cover card processing fees, but there are legal requirements: you must disclose the surcharge before payment, the surcharge cannot exceed your actual processing cost, and you cannot surcharge debit cards. Some states prohibit surcharging entirely. Check your state law before implementing surcharging.
What is the difference between Stripe and Stripe Payments in a field service platform? When a field service platform is "powered by Stripe," they have integrated Stripe's infrastructure into their product. You may not see Stripe's branding directly. The fees may differ — the platform may negotiate custom rates with Stripe or add their own margin. Always ask your platform provider about the specific fee structure you are on.
How do I reduce my Stripe fees at higher volume? Once you process more than $80,000/month in card volume, contact Stripe about custom pricing. They offer interchange-plus pricing for high-volume merchants, which is typically lower than the standard flat rate.
Optimize Your Payment Infrastructure
Understanding Stripe's fee structure and features lets you make intentional decisions that reduce costs and speed up cash collection. The difference between a contractor who uses only credit cards and one who actively promotes ACH can be thousands of dollars per year.
See how payment processing integrates with your billing workflow or explore our plans.
For more on contractor billing strategy, visit our contractor invoicing guide and our comparison of payment processing options for contractors.