← Back to Home

ACH vs Card Payments for Contractor Invoices

When you're invoicing for a remodel, roof job, or plumbing repair, how your client pays matters. The payment method you offer affects your fees, how fast you get paid, and your risk of chargebacks. Here's a practical breakdown to help you decide what works best for your contracting business.

🚀 Beta Note: We're actively building contractor invoicing tools. Features and fee structures may evolve as we grow. Your feedback shapes what we build next.

Quick Comparison

Factor ACH (Bank Transfer) Card (Credit/Debit)
Fees Lower
Usually a flat fee or small percentage, often capped 		Higher
Percentage of invoice plus per-transaction fee; adds up on large jobs
Speed Usually slower
Often a few business days to clear (varies by bank/processor) 		Often faster
Often 1–3 business days (varies by bank/processor)
Chargebacks Lower risk
Disputes are rare and harder to initiate 		Higher risk
Clients can dispute charges; you may need to provide documentation
Client Convenience Moderate
Client enters bank account info; some find this unfamiliar 		High
Clients are used to cards; some earn rewards
Best For Large invoices, repeat clients, cost-conscious contractors Smaller jobs, clients who want speed or rewards, one-time customers

Want to offer both ACH and card payments—without overpaying on fees?

Start Invoicing Free

Free during beta • No credit card required

Rule of Thumb for Contractors

  • For invoices over $2,000: Encourage ACH. The fee savings on a big job can easily cover a few hours of labor.
  • For smaller jobs or one-time clients: Cards are fine—convenience often wins, and fees are manageable on lower amounts.
  • When in doubt, offer both: Let the client choose. Many will pick ACH once they see it's an option, especially if you mention the lower fees.

Real-World Examples

Example 1: $1,200 Bathroom Repair

On a $1,200 invoice, card fees are often a few percent of the total, which can add up over time. ACH is typically much lower-cost and may be capped depending on the processor. For a quick job, the difference might not change your decision — but across a year of invoices it can be real money.

Example 2: $8,500 Kitchen Remodel Milestone

On an $8,500 progress payment, card fees can become a meaningful expense because they scale with the invoice amount. ACH is often capped or priced lower, so the savings on larger jobs can be significant — sometimes enough to cover materials or overhead. For big remodel milestones, encouraging ACH is usually worth it.

Frequently Asked Questions

It depends. Rules vary by state and card network. Some states prohibit surcharging, and card networks have specific requirements if you do surcharge. Many contractors sidestep this by offering a discount for ACH instead of a surcharge for cards—same result, cleaner messaging. We recommend checking your local regulations and encouraging ACH for larger invoices as the simplest approach. Depending on your setup and local rules, you can choose whether you absorb eligible processing fees or pass them to the client.

Most do, especially homeowners who already pay bills online via bank transfer. ACH is the same system used for direct deposit, utility payments, and mortgage drafts. If a client hesitates, reassure them it's a secure, standard bank transfer—and that you use it to keep costs down, which benefits everyone.

Yes. In fact, we recommend it. Giving clients a choice removes friction—they pick what works for them. You can mention that ACH has lower fees if you want to nudge them in that direction. Our invoicing tool lets you enable both options per invoice. Depending on your setup and local rules, you can choose whether you absorb eligible processing fees or pass them to the client.

ACH payments can fail if the client's account has insufficient funds or incorrect details. You'll typically be notified within a few days. The good news: unlike bounced checks, you usually find out faster and can follow up quickly. Some processors charge a small fee for failed ACH transactions, but it's generally less painful than a card chargeback.

For deposits, cards can work well—clients often want to lock in a spot quickly, and the convenience of a card makes it easy. The amount is usually smaller, so fees are tolerable.

For final payments or progress payments on larger jobs, ACH saves you real money. Once a client has seen your work and trusts you, they're usually happy to pay via bank transfer to wrap up the project.

Ready to take control of your payment fees?

Send invoices, offer ACH and card options, and keep more of what you earn.

Start Invoicing Free

Free during beta • No credit card required

← Back to Home