Getting Paid
Card, ACH or Check? Choosing Payment Methods for a Small Service Business.
How your clients can pay you affects how fast you get paid, how much of each invoice you keep, and how much time you spend chasing money. There's no single right answer — most small service businesses end up accepting two or three methods and steering clients toward the one that works best for each type of job.
Credit and debit cards: fastest yes, highest cost
Cards are what most clients reach for, and an invoice with a "pay by card" option tends to get paid sooner simply because it takes the client a minute. The trade-off is the processing fee, which commonly lands around 3% per payment depending on the processor and card type. On a $300 service call that's small; on a $15,000 remodel it's real money, so many owners accept cards but encourage another method for large jobs.
ACH bank transfers: cheaper for big invoices
Bank transfers usually cost far less than cards per payment, which makes them attractive for large or recurring invoices such as commercial maintenance contracts. They take a few business days to settle, and some clients are less familiar with them, so it's worth explaining the option on the invoice rather than assuming they'll find it.
Checks: still common, slowest to clear
Plenty of commercial clients and older homeowners still pay by check. Checks have no processing fee, but they cost you time: mail delays, trips to the bank, and the occasional bounced check. If you accept them, record each one against the invoice as soon as it arrives so your records match what's actually in the bank.
Cash and payment apps
Cash and peer-to-peer apps are convenient for small jobs, but they're easy to lose track of. Whatever the method, every payment should be tied to an invoice and a receipt. That's what keeps your books clean at tax time and avoids "I already paid you" disagreements months later.
Decide who pays the card fee
Some businesses build card costs into their prices; others offer a small discount for bank transfer or check. Rules on adding a surcharge for card payments vary by state and by card network, so check what applies to you before adding one. Whatever you choose, state it plainly on the estimate and the invoice so it's never a surprise.
Put the payment options on every invoice
The simplest way to get paid faster is to remove the "how do I pay you?" question entirely. List the methods you accept, the due date, and — if you accept online payment — a link right on the invoice. The fewer steps between reading the invoice and paying it, the sooner the money lands.