Credit card fees can quietly become one of the largest avoidable costs in a contracting business. The issue is not that cards are bad. Cards are convenient, familiar, and often worth offering. The problem is that percentage-based fees grow with the invoice.
For contractors who send large service, repair, progress, or final invoices, reducing card fee exposure can protect margin without making payment harder for customers.
Understand why contractor card fees feel expensive
Card processing is usually priced as a percentage of the transaction plus a small fixed amount. The fixed amount barely matters on a large invoice. The percentage does.
For a $10,000 domestic card payment, standard Stripe processing at 2.9% plus 30 cents is $290.30, and Conduit’s 1% card platform fee is $100: $390.30 in estimated merchant costs. Standard ACH is $6 total: a $1 Conduit fee plus Stripe ACH at 0.8%, capped at $5. Actual processing costs can vary by card, account pricing, and optional services. These examples assume the contractor absorbs fees.
That difference is why payment method strategy matters more for contractors than for businesses with small transactions.
Offer ACH on larger invoices
ACH bank transfer is one of the most direct ways to reduce payment fees. It is especially useful for progress payments, final invoices, commercial customers, and repeat customers who already trust the business.
ACH is not always the right choice. It can take longer to settle than a card payment, and some customers prefer cards. But if ACH is not available or easy to find, customers will default to the method they already know.
The practical move is to offer both card and ACH, then make ACH the preferred option on larger invoices.
Set a payment-method policy
A payment policy helps the office communicate consistently. It can be simple:
- Card is available for convenience.
- ACH is preferred for larger invoices.
- Deposits may be required before ordering materials.
- Payment timing is explained before the invoice is due.
- Exceptions are approved by the owner or manager.
The policy should not surprise customers after the work is complete. Mention payment expectations in estimates, contracts, or invoice notes.
Use customer-friendly language
Contractors sometimes avoid discussing fees because they do not want to sound difficult. Clear language helps.
Try:
“For larger invoices, bank transfer keeps processing costs down and helps us keep pricing stable. Card is still available if you prefer it.”
That framing gives the customer a reason without turning the payment method into an argument. It also keeps the card option open when speed or convenience matters more.
Send invoices promptly
Late invoices create pressure. When cash is tight, the business may accept the fastest payment method even if it costs more. Sending invoices immediately after completion gives customers more time to use ACH without delaying your own cash flow.
Prompt invoicing also reduces the chance of disputes. The work is fresh, the technician notes are available, and the customer remembers what was completed.
Review fees monthly
Fee reduction should be measured. Each month, review:
- Total collected by card
- Total collected by ACH
- Average invoice size by payment method
- Fee cost on large card payments
- Customers who could reasonably move to ACH
This review often reveals that a small number of large card payments create a large share of the fee cost.
How Conduit handles card surcharging
Customer card surcharging is currently unavailable in Conduit. Merchant processing costs still apply, including when a customer uses a debit or prepaid card.
Offer ACH clearly and explain why it is preferred on larger invoices. Payment-method fees and discounts have jurisdiction-specific restrictions; an ACH label does not make a customer fee exempt. Any payment terms should be agreed and disclosed before customers commit to the work. The calculator above shows the simpler option: the customer pays the invoice amount and the contractor absorbs processing costs.
Soft next step
If payment fees are becoming a real cost center, review contractor-focused payment workflows on the payments page or compare software options like Conduit vs Jobber.