Card vs. ACH vs. check: which payments should a service business accept?
Every payment method has a cost. Sometimes it’s a processing fee, sometimes it’s a trip to the bank and a week of waiting.
On this page
Key takeaways
- Every payment method costs something: a processing fee, a trip to the bank, days of waiting, or the risk of a dispute.
- Cards are the most convenient for homeowners. Bank transfers (ACH) usually cost less on large invoices.
- Checks and cash have no processing fee but cost you time and are slower to reach your account.
- Accept the methods your customers actually use, and record every payment in one place.
Ask ten contractors how they want to be paid and you’ll hear “cash” from most of them. Ask their customers and you’ll hear “can I just pay with my card?” The right answer for most small service businesses is somewhere in between: accept the methods that get you paid fastest by the customers you have, and understand what each one really costs.
The four ways customers pay
| Method | Speed to your account | What it costs you | Main risk |
|---|---|---|---|
| Credit or debit card | Usually a couple of business days | A percentage plus a small fixed fee per payment | Chargebacks if a customer disputes the charge |
| ACH bank transfer | A few business days to settle | Usually a lower percentage, often capped | Returned payments if the account has a problem |
| Check | Mail time, plus your deposit and any bank hold | Little or no fee, but your time | Bounced checks and lost mail |
| Cash | Immediately | No fee, but handling and record keeping | Loss, theft, and payments that never get recorded |
Credit and debit cards
Cards are what most homeowners reach for. They can pay from a link on their phone the minute they get the invoice, which is exactly when you want them to pay. For small and mid-sized invoices, the fee is usually worth the speed.
- Pros: fastest for the customer, familiar, works from a phone, and the money typically reaches you within a few days.
- Cons: the highest fee of the four, and customers can dispute a charge with their card issuer.
- Best for: homeowners, one-time jobs, and invoices where getting paid today matters more than the fee.
ACH bank transfers
An ACH payment moves money directly from the customer’s bank account to yours. It takes a few days longer than a card, but processing costs are usually lower, and many processors cap the fee, which makes a big difference on large invoices.
- Pros: low cost on big invoices, no card limits, and it suits businesses and property managers that pay by bank.
- Cons: slower to settle, and a payment can be returned if the account has insufficient funds or the details are wrong.
- Best for: large projects, progress payments, and commercial clients.
What the fee difference looks like
The gap between card and bank payments only matters when the invoice is big. Here’s the same $2,400 invoice at two example rates.
Example: processing a $2,400 invoice
- Card at 2.9% + $0.30
- $69.90
- ACH at 0.8%, capped at $5.00
- $5.00
- Difference on this invoice
- $64.90
On a $150 service call, the same two rates cost $4.65 and $1.20. Most business owners happily pay the difference for a card payment that arrives today. On a $12,000 project, it’s worth steering customers toward a bank payment.
Checks
Plenty of customers still write checks, especially for larger jobs and in some regions. There’s no processing fee, but there is a cost: waiting for the mail, driving to the bank, or depositing by phone, and waiting out any hold. Checks can also bounce.
- Deposit checks quickly. Don’t let them ride in the truck.
- Record the check against the invoice the day you receive it, with the check number.
- For large amounts from a new customer, consider asking for a bank transfer instead.
Cash
Cash is instant and free, which is why so many owner-operators like it. The risk isn’t the cash itself, it’s the record. A crew member collects $200, it goes in a pocket, and three weeks later nobody can say whether the customer paid. Give a receipt every time and record the payment the same day.
Should you pass fees on to the customer?
Some businesses add a surcharge for card payments. Before you do, check your state’s rules and your card networks’ requirements, because they set limits and require clear disclosure, and a few places restrict surcharges entirely. Many businesses simply build normal processing costs into their prices, the same way they build in fuel.
How to decide what to accept
- Homeowners and small jobs: cards and bank transfers online, with checks and cash recorded when they happen.
- Large residential projects: encourage bank transfers for deposits and progress payments.
- Commercial clients: bank transfers and checks, on the payment terms you agreed.
Whatever you choose, put the accepted methods on your quote and your invoice, and make the online options one tap away. The easier it is to pay, the faster you get paid.
Common questions
What’s the difference between ACH and a wire transfer?
Both move money between bank accounts. ACH payments are batched and usually take a few business days, with low fees. Wires are faster, often same day, but typically cost more and are mostly used for large or urgent transfers.
Can a customer reverse an ACH payment?
ACH payments can be returned in certain situations, such as insufficient funds or an unauthorized debit, within timeframes set by the network. It’s less common than card chargebacks, but it can happen, so keep records of the approved quote and the completed work.
Is it worth accepting cards if I mostly get paid in cash?
Usually, yes. Many customers don’t carry cash or checkbooks, and a payment link lets them pay the moment they get your invoice instead of when they happen to see you next. The fee is often less than the cost of waiting.
Do I need a separate app to take card payments?
Not necessarily. Many invoicing tools let customers pay from a link on the invoice. In JobSigner, customers pay by card or bank transfer from their invoice link once your business completes Stripe activation.