Why contractor payments land in the expensive rows
On a $4,800 invoice, Visa interchange runs about $79 on a debit card from a smaller bank to about $130 on a commercial card [1]. Card networks price a sale by how the card is used. When a customer pays an emailed invoice, or reads you the number by phone, the card is not present, and the rate is higher. Visa's basic credit card costs 1.51% + 10¢ in person and 1.89% + 10¢ without the card present [1]. For a debit card from a smaller bank it is 0.80% + 15¢ in person and 1.65% + 15¢ online [1].
Large tickets magnify the gap. On a $20,000 job, the difference between those two Visa credit rows is about $76. If you meet customers at the site to collect, tapping the card on a reader is the single easiest way to cut the cost of a big payment.
Do not write card numbers on job folders
If a customer reads you a card by phone, type it straight into your processor's virtual terminal or send a payment link. Card numbers on paper are a security risk and break card rules.
Offer bank transfer on every large invoice
An ACH bank transfer moves money from the customer's bank account to yours, and most providers cap the fee. Stripe charges 0.8% with a $5.00 cap [6]. Square charges 1% with a $1 minimum on invoices, capped at $10 on its Plus and Premium plans; on its Free plan there is no cap [3]. PayPal invoices paid by bank cost 1%, capped at $10.00 [7].
That cap is what makes ACH so useful for contractors. On a $20,000 invoice, a capped ACH payment costs $5 to $10 while a card at 2.9% + 30¢ costs $580.30 [3][6]. Put the bank transfer option first on the invoice, and say plainly that cards are welcome too.
Ask your provider how long a bank transfer takes to settle, and release final paperwork or lien waivers once the money is actually in your account.
Business and commercial cards: the rows that cost the most
Property managers and commercial clients often pay with company cards, which carry the highest rates. Visa's commercial card-not-present rate is 2.70% + 10¢ [1]. Mastercard's small business credit cards range from 1.90% + 10¢ on its Data Rate II row to 2.95% + 10¢ to 3.30% + 10¢ on its Standard row, depending on the card tier [2].
Very large commercial payments have their own row. Visa lists a Commercial Product Large Ticket rate of 1.30% + $35.00 for purchasing and corporate cards [1]. On a $20,000 payment that is $295, against $540.10 on the commercial card-not-present row. Ask your processor whether your large commercial payments qualify and whether your setup sends the details the lower rows need.
Surcharging a contractor invoice: New Jersey and Visa rules
New Jersey allows a credit card surcharge, but it may not be greater than the actual cost to process the payment [4]. You must disclose it before the customer is charged: on a sign at the point of entry and point of sale in person, on the checkout page for online payments, and out loud before a phone payment [4].
- Visa limits the surcharge to your processing rate for that card or 3%, whichever is lower [5].
- Debit and prepaid cards cannot be surcharged, even when the customer picks "credit" on the terminal [5].
- You must notify your acquirer at least 30 days before you start [5].
- Show the surcharge as its own line on the invoice and the receipt.
Because a debit card cannot be surcharged, an invoice that adds a flat 3% to every card payment will overcharge some customers. Use a processor setting that detects credit cards, and run the math with our surcharge calculator. This is general information, not legal advice, as of Oct 20, 2026.
Deposits and progress payments: plan the payment method with the schedule
Most jobs are paid in stages: a deposit, one or more progress payments and a final balance. Each stage is a chance to choose the cheapest method. One simple pattern:
- Deposit: request ACH on the first invoice, with card as a second option.
- Progress payments: collect in person at the site when you can, so a card is tapped and priced as card-present [1].
- Final balance: send the invoice with ACH listed first and the card surcharge, if you use one, shown clearly before payment [4].
Write the payment options into the contract itself, so the customer knows from day one that bank transfer is preferred on large amounts.
New Jersey's contractors
New Jersey had 22,502 construction establishments with paid employees in 2023, including 14,029 specialty trade contractors and 3,454 plumbing, heating and air conditioning contractors [8]. Most bill by invoice, which is why the card-not-present rows and ACH caps above matter so much in this trade.
BatchOut is our own processing service and works with contractors on invoice and ACH setups. If we show it to you, it is labeled as ours and sits next to other options.