What payment methods do contractors accept?
Most contractors accept cash, checks, credit cards, and bank transfers. The payment methods you offer directly impact how fast you get paid and how many customers actually pay their invoices. Here's what works and what to avoid.
Cash and checks still move jobs
Cash is instant. No processing fees, no waiting for deposits. A lot of small jobs—landscape cleanups, minor repairs, service calls—still settle on site with cash or a check written on the spot. For residential work, you'll see checks more often. For commercial jobs, you might see checks or job-site payment agreements. The downside: you have to deposit checks manually, and they take 1-3 business days to clear. Cash needs secure handling and documentation. If you're doing mostly small residential jobs, cash and checks are fine. If you want faster accounting cycles, push toward digital.
Credit and debit cards cost you money
Card payments process instantly and feel safer than cash. Customers expect you to take cards. But processors charge 2.5-3.5% per transaction, plus per-transaction fees of $0.30 or so. On a $5,000 invoice, that's $125-$175 gone. For concrete contractors getting paid on large projects, those fees add up. Square, Stripe, and most processors offer contractor-friendly setups with no monthly minimums. Some let you build the fee into the invoice, so customers pay the full amount and you pocket the net. The trade-off: it makes invoices look more expensive, which can kill deals on price-sensitive jobs. Use cards for smaller jobs where the percentage hit is lower, or pass the fee to customers who insist on paying that way.
Bank transfers and ACH are fast and cheap
ACH transfers (bank-to-bank) and wire transfers cost $0-$5 per transaction and hit your account in 1-2 business days. Commercial customers and GCs almost always have the ability to send ACH. It's how they pay most vendors. Many contractors don't ask for it because they assume customers will volunteer the option. They won't. Make it easy: include bank routing and account details on your invoice with clear instructions. Even residential customers will use ACH if you tell them how. The money is more secure than cash, the fees are negligible, and it keeps your accounting cleaner. For regular customers and recurring work, set up standing ACH payments so you don't chase invoices every month.
Digital wallets and payment apps
Venmo, PayPal, and similar platforms work for small jobs and crew tips, but they're not suitable for large invoices. Venmo has daily limits ($20,000 for verified accounts) and wasn't designed for business accounting. PayPal charges 2.2% + $0.30 and creates extra reconciliation work. Save these for small cash-only situations where your customer is already on the app. For invoicing, stick to proper payment processors that integrate with your accounting. If you invoice through software, most platforms now accept multiple payment methods in one place—customers pick what works for them, and the payment goes straight into your account.
Bottom line
Offer ACH and bank transfers first—they're cheap and fast for larger jobs. Add card processing for customers who demand it, and accept cash for on-site work. Always put payment instructions on your invoice, not just your verbal agreement.