Why Contractors Need to Accept Credit Cards
Quick answer: The best way for contractors to accept credit cards is a mobile Bluetooth terminal (like Clover Go) paired with a dedicated merchant account using interchange-plus pricing. For phone payments, use a virtual terminal. For invoicing, send payment links via text or email. Most contractors are approved in 1-3 business days.
Cash and checks are still common in contracting, but they create problems:
- Customers carry less cash. A $3,000 HVAC repair paid by check takes 3-5 business days to clear — and might bounce.
- You lose jobs to competitors who take cards. Homeowners comparing quotes choose the contractor who makes payment easy.
- Deposits and progress payments are harder to collect. Asking for a $500 deposit in cash creates friction. A card-on-file authorization doesn't.
- Invoice chasing wastes time. Contractors who invoice net-30 spend hours following up on unpaid bills. A payment link in the invoice gets paid same-day.
The typical contractor processes $5,000-50,000/month in card payments. At these volumes, interchange-plus pricing saves significantly over flat-rate processors like Square.
Option 1: Tap-to-Pay on Your Phone
The simplest option for contractors in the field. Modern smartphones (iPhone and most Android devices) support NFC tap-to-pay directly — no external hardware needed. Customers tap their card or phone to yours, and the payment processes.
Best for: Small repairs, service calls, one-time jobs under $500. See our full guide: how to accept credit cards on your phone.
Limitations: No chip insert or swipe capability. Some customers (especially older ones) aren't comfortable with phone-based payments. No receipt printer.
Option 2: Mobile Card Terminal
A portable card terminal connects to your phone via Bluetooth and accepts chip, swipe, tap, and manual entry. This is the standard setup for contractors who accept payments on job sites regularly.
Best for: Contractors processing $5K+/month who want a professional payment experience. Terminal cost is typically $50-300 depending on features.
How it works: Pair the terminal with your phone or tablet. Customer inserts, taps, or swipes their card. Payment processes through your merchant account. Receipt sent via email or text.
Hardware options include Clover Go (portable Bluetooth terminal), PAX A920 (full Android terminal with built-in printer), and Dejavoo QD series (compact and rugged).
Option 3: Virtual Terminal for Phone Payments
Customers sometimes call to authorize a payment over the phone. A virtual terminal lets you key in card numbers on your laptop, tablet, or phone through a secure web portal.
Best for: Deposits, progress payments, and phone authorizations. No hardware required — it's a web-based payment form.
Important: Manually keyed transactions have higher interchange rates (card-not-present) than chip or tap payments (card-present). Use a terminal when possible to save on rates.
Option 4: Invoicing with Payment Links
Send professional invoices with a secure payment link. The customer clicks the link, enters their card information on a hosted payment page, and you get paid. No phone calls, no check chasing.
Best for: Larger jobs with milestone billing, net-30 invoicing, and customers who want to pay on their own schedule.
Unison's invoicing and surcharging solution lets you create and send invoices from your phone with built-in payment links. You can optionally pass processing fees to the customer via a surcharge or service fee.
Handling Deposits and Progress Payments
Most contractors collect a deposit upfront and bill the remainder on completion. Card processing makes this seamless:
Pre-authorization: Authorize a card for the deposit amount without charging it. This confirms the card is valid and has sufficient funds. Capture the charge when you're ready.
Card on file: With the customer's permission, tokenize their card for future charges. Bill progress payments against the stored token without asking for card details again.
Milestone invoicing: For large projects ($10K+), send invoices at each milestone (foundation, framing, finish) with payment links. The customer pays each stage before work continues.
Processing Rates for Contractors
| Payment Method | Typical Rate |
|---|---|
| Card-present (chip/tap) | 2.0-3.0% + per-transaction fee |
| Card-not-present (keyed/online) | 2.5-3.5% + per-transaction fee |
| ACH / eCheck | 0.5-1.5% (flat or per-transaction) |
Card-present rates are lower because the fraud risk is lower when the physical card is used. Whenever possible, use a terminal instead of keying in card numbers.
For contractors processing $10K+/month, interchange-plus pricing saves 15-30% compared to flat-rate processors.
Passing Processing Fees to Customers
Many contractors offset processing costs by adding a service fee or offering a cash discount. Options include:
Cash discount program: Post a "cash price" and add a small percentage for card payments. This is legal in all 50 states when disclosed properly.
Credit card surcharge: Add the processing fee directly to card transactions. Legal in most states with proper disclosure. See state-by-state surcharging rules.
Convenience fee: Charge a flat fee for non-standard payment methods (like phone payments). Specific rules apply — not all fee structures are compliant.
Our guide on cash discount vs surcharge vs convenience fee explains the differences and compliance requirements.
Getting Set Up
Contractors typically get approved for a merchant account within 1-3 business days. You'll need:
- Business registration (LLC, sole prop, or corp)
- EIN or SSN
- Business bank account
- Government-issued ID
No storefront, no website, and no minimum processing volume required. Contact Unison Payment Solutions to get started — we set up contractors with mobile terminals, virtual terminals, and invoicing all on one account.