ACH vs credit card payments for contractors: fees, speed, disputes and who pays

Most contractors pick a payment processor once and never look at the fee line again. That is fine when the average ticket is a $300 service call. It gets expensive fast when the same shop starts selling $15,000 roofs, $12,000 systems and $40,000 remodels, because a percentage fee on a big number is a big number.

Card and ACH both let a homeowner pay from a phone on site. They differ in cost, speed and the risk you carry afterward. This guide compares both at published rates, works a real-size job, and covers the rules on passing fees on.

Card vs ACH at a glance

ACH is a bank-to-bank transfer: the homeowner links or enters their checking account and authorizes the debit. A card payment runs over the card networks (Visa, Mastercard, American Express, Discover), which is why it confirms instantly and why it costs more.

What card and ACH actually cost

Headline rates only tell you part of the story. What matters is the effective cost on your typical ticket. Here are published rates from processors and field service tools, so you can see the pattern for yourself.

Two things stand out. First, the card rate in every row is a percentage with no ceiling, so card cost scales directly with the job. Second, ACH is cheaper everywhere, and where there is a cap the savings grow with the ticket. Revcore's rates are standard processing rates plus a 0.75% platform fee, so they are higher than some headline rates, like Square's. In return, Margin Protection is on by default: it marks up each line item in the estimate proportionally to cover card processing, so you keep your full price and the homeowner never sees a separate fee line. Payouts land in 1 to 2 business days, and eligible accounts can request an instant payout for a 1% fee. Compare the full picture for how you actually get paid, not one number. If you are weighing tools side by side, see Revcore vs Square and Revcore vs Jobber.

Watch the edge fees too: processors commonly charge a fee for each card dispute and each failed ACH payment, so check those lines on any pricing page.

Worked example: a $15,000 job

Take a $15,000 roof replacement, HVAC system or bathroom remodel, with a one-third deposit at signing and the balance on completion. This is an illustrative example using Revcore's published rates: 3.65% + 30¢ for card, and for ACH, 0.8% (capped at $5) plus a 0.75% platform fee. The 0.8% part hits its $5 cap at $625, so any ACH payment above that costs $5 plus 0.75% of the amount.

The gap between all card and all ACH is $425.60 on one job. If you sell 150 jobs like it in a year, that is roughly $63,800 in processing difference, again as an illustrative example. At the margins most replacement and remodel contractors run, that can be the profit on several whole jobs. Run your own numbers with a markup and margin calculator.

Now a $385 service call

Same rates, a small plumbing or electrical repair. Card costs $14.35 and ACH costs $5.97, a difference of $8.38. That is small next to a tech waiting while a homeowner hunts for a bank login, or the office chasing a bank payment that bounced days later. On small tickets, card usually wins once you count time and risk.

Speed to funds: when the money is really yours

There are two clocks: confirmation, and money in your bank.

• Card confirms immediately. You know at the table whether the payment went through.
• ACH confirms later. An ACH debit can take up to 4 business days to confirm success or failure, and some processors offer faster settlement for eligible accounts at a higher rate. Payments can fail for insufficient funds, a wrong account number or a blocked debit, and if a payment fails after funds were made available, those funds are pulled back.
• Payout timing depends on your provider. Many processors send settled funds to your bank on a schedule measured in business days. Revcore pays out in 1 to 2 business days, and eligible accounts can request an instant payout for a 1% fee, as shown on the payments page.

The practical rule: on a big ACH balance, treat the job as paid when the payment has confirmed, not when the homeowner taps submit. For the full process of collecting on completion, see how to get paid on the day of the job.

Chargeback and dispute risk

Both payment types can be reversed. They just work differently, and the difference matters most on large tickets.

Card disputes

Card networks typically let cardholders dispute within 120 days of the payment, and longer in some cases, such as when the payment is for a future service. When a dispute opens, the disputed amount plus a dispute fee is pulled from your balance and held. You usually have 7 to 21 days to respond, and the whole process can take 2 to 3 months. The good news: you can submit evidence, and a signed contract, photos and a completion sign-off are strong evidence.

ACH disputes and returns

Under ACH network rules, a homeowner can generally dispute a debit from a personal account for up to 60 calendar days. Disputes filed in that window are considered final and uncontestable through the ACH network, so you resolve them directly with the customer. The window is shorter than card, and the protection is weaker once a dispute is filed. Separately, an ACH payment can simply fail for insufficient funds, which card does not do after approval.

Disputes on contractor jobs are usually about the work, not fraud, and the best protection is the same for both methods.

• A signed estimate with payment terms above the signature. The homeowner agreed to the amount and the schedule in writing.
• Signed change orders. Most disputes on remodels start with a scope change nobody wrote down.
• Before, during and after photos. See photo documentation that protects against callbacks.
• A completion walk-through before you ask for the balance. A homeowner who inspected the work and approved it rarely disputes it.
• A recognizable business name on the statement. Many card disputes start with a charge the homeowner does not recognize.

Which method to push on big jobs vs small calls

Offer both every time, and recommend one based on the ticket.

For big jobs, the deposit is the easiest place to start. The homeowner is already committed and sitting with you, and the lower ACH fee on the deposit alone saves a big share of the difference. For how to size deposits and draws, and the state rules that cap them, see deposits, draws and stage payments.

Surcharging and passing fees to the homeowner

You have three honest options for card fees: absorb them, build them into your pricing, or add a surcharge when the homeowner pays by credit card. The first two are simple. The third comes with network rules and state laws.

Visa's merchant surcharging requirements say, in summary:

• Credit only. In the US, surcharges apply only to credit transactions. Debit and prepaid cards cannot be surcharged, even when they run as credit.
• Capped at your cost. The surcharge cannot exceed your cost of accepting that card, and never more than 3% of the transaction.
• 30 days notice. You must notify your acquirer (your processor) 30 days before you start. Visa's small business rules page says the same.
• Disclosure. You must disclose the surcharge at the point of entry and the point of sale, and show it as a separate line on the receipt.

Two consequences for contractors. First, the 3% ceiling means a surcharge often cannot cover your full card cost. On the $15,000 example, 3% is $450 while the card fee at Revcore's rate is $548.10. Second, state law can override all of this. Visa's own guide lists Connecticut, Maine, Massachusetts and Oklahoma as states that prohibit or limit surcharging, and state rules change. Mastercard, American Express and Discover have their own rules as well.

For most home-service shops, building the fee into price is the cleanest route. The homeowner sees one number, nobody feels nickel-and-dimed at the end of the job, and debit cards and state limits stop being a problem. In Revcore this is automatic: Margin Protection, on by default, marks up each line item proportionally to cover card processing, so you keep your full price. If you quote with good, better, best options, build the fee into each tier once and forget about it.

How to present payment options to the homeowner

Homeowners care that paying is easy and that nothing surprises them. Present payment as part of the plan, not an afterthought.

1. 1

   Put payment terms on the estimate

   State the deposit, any draws and the final balance, and list accepted methods: card or bank transfer. Terms above the signature line are terms the homeowner agreed to.

2. 2

   Recommend bank transfer on big payments

   Say it plainly and give the reason. Most homeowners are fine paying a large amount from checking when you ask directly.

3. 3

   Keep card available without friction

   Some homeowners want card rewards or need a few extra weeks before their statement is due. Let them pay by card, with the fee already in the price.

4. 4

   Collect the deposit at signing

   Send the request to their phone or hand them the device while you are still at the table. Waiting for a check to arrive is how jobs stall before they start.

5. 5

   Request the balance at the walk-through

   Walk the finished job together, get the sign-off, then send the payment request before the crew leaves. For ACH, confirm it has cleared before you close the job out.

Frequently asked questions

Further reading: Visa's surcharging requirements cover the card rules. For the collection process itself, see how to get paid on the day of the job.