Contractors take payment in more ways than ever, but each method carries different costs, speed, and risk. Here's how card, ACH, check, and cash compare, and what they actually cost to accept.
How do I accept credit card payments as a contractor?
Use invoicing or payments software built on a processor like Stripe Connect, which lets you accept card payments directly from an online invoice without needing a separate traditional merchant account.
Modern payment platforms have largely replaced the old process of applying for a standalone merchant account. The typical setup:
1.Sign up through your invoicing software's built-in payments provider (e.g., Stripe Connect)
2.Complete identity/business verification (standard for any payment processor, required by law)
3.Add a "Pay Now" button or link to your invoices
4.Customers enter card details directly; funds are deposited to your bank account on the processor's payout schedule
Stripe's standard rate for domestic card transactions is 2.9% + $0.30 per successful transaction, which is the baseline cost to expect regardless of which invoicing app you use, since that fee is set by the underlying processor.
BCTM uses Stripe Connect for card payments, so you can accept cards directly from an invoice without a separate merchant account application.
ACH is a direct bank-to-bank transfer, and you should generally accept it because it costs significantly less than credit card processing, especially on larger invoices.
ACH (Automated Clearing House) payments move money directly from the customer's bank account to yours, without a card network involved. Compared to cards:
Card
ACH
Stripe rate
2.9% + $0.30
0.8%, capped at $5.00
Speed
Same-day/next-day settlement typical
Slightly slower (bank transfer timing)
Best for
Smaller, faster transactions
Larger invoices where the fee cap matters
Because ACH is capped at $5, it becomes cheaper than card processing on any transaction above roughly $625 — beyond that point, the flat $5 cap wins over the percentage-based card fee (Stripe Pricing; calculation confirmed via FeeProbe). For contractors billing $1,000+ jobs regularly, offering ACH can meaningfully reduce processing costs.
BCTM supports ACH payments alongside card payments via Stripe Connect, so customers can choose the cheaper option on larger invoices.
Is ACH cheaper than credit card processing for contractors?
Yes, for most contractor invoice sizes — ACH costs 0.8% capped at $5.00 per transaction versus 2.9% + $0.30 for cards, so ACH becomes the cheaper option above roughly $625 per transaction.
The break-even math, using Stripe's published rates:
Invoice amount
Card cost (2.9% + $0.30)
ACH cost (0.8%, capped $5)
$300
$9.00
$2.40
$625
$18.43
$5.00 (cap reached)
$2,000
$58.30
$5.00 (cap)
$10,000
$290.30
$5.00 (cap)
Above about $625, ACH's flat $5 cap is cheaper than the percentage-based card fee, and the gap widens dramatically on large invoices (Stripe Pricing; FeeProbe Stripe ACH Fees analysis). For smaller invoices, the percentage-based card fee may actually cost less than ACH's minimum handling in some processor setups — check your specific processor's rate card.
BCTM offers both ACH and card payments through Stripe Connect, so you and your customer can pick whichever is cheaper for the invoice size.
Should I accept Zelle or Venmo for contracting jobs?
Zelle and Venmo can work for informal payments, but they lack the invoicing, dispute protection, and business record-keeping that dedicated invoicing and payment platforms provide, so many contractors use them only as a backup, not a primary method.
Zelle and Venmo are peer-to-peer apps, not built for business invoicing. Trade-offs to consider:
No invoice trail — payments aren't automatically tied to an itemized invoice or job record
Limited dispute protections — these apps are designed for sending money to people you trust, not for commercial transaction disputes
No automatic bookkeeping — you'd need to manually log every payment against your own records
Business use terms — some of these apps have specific terms or fees for business-labeled accounts
They can be a convenient backup for a customer who insists, but relying on them as your primary payment method means losing the itemized, auditable record that a proper invoice and payment system provides.
BCTM doesn't process Zelle or Venmo payments directly, but you can manually record a payment received through those apps against an invoice so your books stay complete.
Can contractors accept cryptocurrency payments?
Technically yes with a specialized crypto payment processor, but it's uncommon in the trades and introduces tax-reporting and price-volatility complexity that most contractors avoid.
Accepting cryptocurrency requires a processor that supports crypto-to-fiat conversion, and creates additional considerations:
Price volatility between invoice time and settlement
Tax reporting complexity, since crypto received as payment is generally treated as income at its value when received
Limited customer demand in most residential/light-commercial trades
For most contractors, the added complexity outweighs the benefit unless you have a specific customer base requesting it. If you do accept crypto, consult a CPA familiar with digital-asset tax treatment.
This is general information, not tax advice. Consult a CPA about tax treatment of cryptocurrency payments.
BCTM does not currently support cryptocurrency as a payment rail; it processes card and ACH payments through Stripe Connect.
What's the safest way to accept a large payment from a customer?
ACH bank transfer is generally the safest and most cost-effective way to accept a large payment, since it avoids high percentage-based card fees and moves money directly between verified bank accounts.
For large invoices, a few factors matter more than for small ones:
Cost — ACH's flat $5 cap (versus 2.9% on a card) means the savings scale with the size of the payment; on a $20,000 invoice, that's roughly $580 in card fees versus a flat $5 for ACH (Stripe Pricing)
Fraud risk — large cash payments carry theft and record-keeping risk; large check payments carry bounce risk until cleared
Verification — bank-to-bank ACH transfers happen between verified accounts, reducing certain fraud vectors compared to cash
For very large transactions, splitting into a deposit plus milestone payments (rather than one lump sum) also reduces your risk if something goes wrong mid-project.
BCTM supports ACH payments via Stripe Connect, making it a low-cost option for large invoices, and also supports splitting large jobs into deposit and milestone payments.
How do I accept a check and record it in my books?
Deposit the check as usual through your bank, then manually mark the corresponding invoice as paid in your invoicing software with the payment method noted as "check" so your records stay complete.
Checks aren't processed electronically through most invoicing software, so recording them is a manual step:
1.Deposit the check through your bank (mobile deposit or branch)
2.Log into your invoicing software and mark the invoice as paid
3.Select "check" as the payment method and note the check number for your records
4.Confirm a receipt is generated for the customer
Doing this promptly, rather than batching it at month-end, keeps your accounts-receivable dashboard accurate in real time.
BCTM lets you manually record a check payment against any invoice, automatically generating a receipt and updating your reports.
What percentage does a credit card processor take?
A typical credit card processing rate, using Stripe as an example, is 2.9% plus $0.30 per successful domestic transaction.
Processing fees vary by provider, but Stripe's published standard rate for domestic card transactions is:
2.9% + $0.30 per successful card transaction
On a $500 invoice, that works out to roughly $14.80 in fees. Some platforms also add their own markup on top of the base processor rate, or charge a separate monthly platform fee, so the total cost to you can be higher than the raw processor rate depending on which invoicing software you use.
BCTM passes through Stripe's standard card processing rate without hidden platform markups stacked on top.
Because of the cap, ACH is dramatically cheaper than card processing on larger invoices — a $10,000 invoice paid by ACH costs a flat $5, versus roughly $290 in card fees at the standard 2.9% + $0.30 rate. This makes ACH the more economical default to offer for any invoice above a few hundred dollars.
BCTM offers ACH payments at Stripe's standard capped rate, alongside card payments, so customers can choose based on invoice size.
Can I text a customer a link to pay their invoice?
Yes — many invoicing platforms let you send an invoice by SMS with a click-to-pay link, so the customer can pay by card or ACH directly from their phone.
Texting a payment link removes several steps compared to email or mailed invoices: the customer doesn't need to log into an app, print anything, or navigate to a website separately. The typical flow:
1.Generate the invoice with a payment link attached
2.Send via SMS (with the customer's consent to receive texts)
3.Customer taps the link, which opens a secure payment page
4.They enter card or bank info and confirm
Because most people read texts within minutes, this tends to shrink the time between invoicing and payment more than email alone.
BCTM can send invoices via SMS with an embedded click-to-pay link, letting customers pay by card or ACH directly from the text.
Do I need a separate merchant account to accept cards?
No — modern payment platforms built on services like Stripe Connect let you accept card payments without applying for a traditional standalone merchant account.
Historically, accepting cards required applying directly to a bank or merchant services provider for your own merchant account, a process that could take weeks. Platforms built on Stripe Connect (or similar embedded payment infrastructure) handle this differently:
You onboard through the software itself with identity/business verification
The platform manages the underlying merchant relationship
You start accepting payments typically within the same day, rather than waiting weeks for a standalone application
This is one of the main reasons software-embedded payments have replaced separate merchant account applications for most small contractors.
BCTM uses Stripe Connect for embedded merchant onboarding, so you can start accepting card and ACH payments without a separate merchant account application.
How fast do I get my money after a customer pays online?
Payout timing depends on your payment processor's schedule, but Stripe-powered payouts are commonly deposited within a couple of business days after the payment clears.
Online card and ACH payments generally settle faster than checks, but there's still a processing window between when the customer pays and when funds land in your bank account. Typical factors:
Standard payout schedules (e.g., rolling 2-business-day payouts) are common for Stripe-based platforms, though the exact timing can depend on your account history and setup
New accounts sometimes have a slightly longer initial payout delay for fraud-prevention purposes
ACH payments can take a bit longer to fully clear than card payments before funds are available
Check your specific platform's payout schedule, since exact timing can vary.
BCTM payouts run on Stripe Connect's standard payout schedule, depositing cleared payments to your linked bank account automatically.
What happens if a customer's card payment is declined?
The payment fails to process, the customer is typically notified immediately with a generic decline message, and you'll usually get a notification so you can follow up and ask for another payment method.
A declined card doesn't charge you or the customer anything — it simply fails. What typically happens next:
1.The customer sees an immediate error at checkout (usually a generic "declined" message, since specific reasons like insufficient funds aren't shared for security reasons)
2.You receive a notification that the payment attempt failed
3.The invoice remains marked unpaid
4.You can follow up with the customer to try again, use a different card, or switch to ACH or another method
Having automated notifications for failed payments means you're not waiting to notice the invoice is still unpaid days later.
BCTM notifies you automatically when a card payment fails so you can follow up with the customer right away instead of discovering it days later.
Can I accept partial payments on an invoice?
Yes — most modern invoicing software allows partial or split payments, tracking the remaining balance automatically until the invoice is fully paid.
Partial payments are useful for deposits, milestone billing, or a customer who wants to pay down a balance over time. How it typically works:
1.The customer pays a portion of the total (manually entered or via a set deposit amount)
2.The invoice updates to show the remaining balance due
3.Subsequent payments continue reducing the balance until it reaches zero
4.The invoice status updates automatically (e.g., "partially paid" → "paid")
This is especially useful for deposit-based work and progress billing on larger jobs, where the full amount isn't expected in one transaction.
BCTM supports partial payments on any invoice, automatically tracking the remaining balance until it's paid in full.
Invoice the job, not the paperwork
No subscription. You pay a per-transaction fee only when a customer pays you.