How to Accept Credit Card Payments as a Contractor

To accept credit card payments as a contractor, choose a reliable payment processor, like DepositFix, that fits your workflow, whether you handle on-site work, renovations, or milestone-based projects. Credit card payments make it easier for clients to pay immediately, reduce delays compared to checks, and help you maintain a steady cash flow.

Choose a Payment Processor or Merchant Service

To start accepting credit card payments, you need a payment processor or merchant service provider. These companies handle the technical side of processing transactions between your client’s credit card issuer and your bank account.

Some popular options for contractors include:

• DepositFix – Tailored for contractors using tools like QuickBooks, Monday, Jobber Payments, ServiceTitan Payments, etc.
• Stripe – Easy setup, great for invoicing and recurring billing.
• Square – Offers mobile card readers, good for on-the-go contractors.
• PayPal – Trusted by clients worldwide, integrates with many platforms.

When choosing, consider:

• Transaction fees (usually 2.5%–3.5% per transaction).
• Ease of use (mobile apps, invoicing tools, integrations).
• Payout speed (how fast the money hits your account).

Decide How You’ll Accept Payments

Contractors can accept credit card payments in different ways depending on their workflow and client base.

Common methods include:

• Online Invoicing – Send digital invoices with a payment link (ideal for freelance designers, consultants, etc.).
• Mobile Card Readers – Swipe or tap a client’s card on-site using a device connected to your phone (useful for contractors like electricians or plumbers).
• Recurring Payments – Set up automatic billing for regular services (e.g., landscaping or monthly consulting retainers).
• Payment Portals – Give clients access to a secure online portal where they can pay invoices at any time.

Example: A general contractor renovating a house might use DepositFix to email an invoice for a completed milestone, letting the homeowner pay immediately with a credit card.

Set Up a Business Bank Account

You’ll need a bank account to receive the funds. While you could technically use a personal account, opening a business bank account is strongly recommended. It helps you:

• Separate personal and business finances.
• Simplify bookkeeping and tax reporting.
• Build credibility with clients.

Most payment processors will ask for your account and routing numbers during setup.

Send Professional Invoices

A clean, professional invoice makes it easier for clients to pay. Most payment processors include invoicing tools.

Best Practices for Contractor Invoices:

• Include your business name and contact info.
• List services provided, hours, and rates.
• Add a clear “Pay Now” button or link.
• Set payment terms (e.g., “Due upon receipt” or “Net 15”).

Tip: Use the DepositFix free invoice generator to generate and send invoices.

Offer Multiple Payment Options

While credit cards are convenient, some clients prefer ACH payments, e-checks, or digital wallets. When you offer multiple options, you:

• Increase the likelihood of fast payment.
• Cater to different client preferences.
• Reduce friction in your cash flow.

You don’t have to accept everything, but offering credit cards plus ACH/bank transfer is a solid setup for most contractors.

Keep Records for Taxes and Accounting

Accepting credit cards means more digital transactions, which is good for bookkeeping, but you still need to stay organized.

• Sync your payment processor with accounting software (e.g., QuickBooks, Xero, FreshBooks).
• Track invoices issued vs. payments collected to monitor accounts receivable.
• Save transaction fees as an expense for tax deductions.

Bonus Tip: Accept Credit Card Payments as a Contractor with DepositFix

DepositFix makes it easy for contractors to accept credit card payments online or via email invoices. You can create professional invoices, send them directly to clients, and get paid faster. The platform also allows you to transfer credit card fees to your customers, so you don’t eat the cost of processing payments. This helps maintain your cash flow while keeping your billing transparent and professional.