Running a business is hugely rewarding. But it also means wearing many hats.
Yes, you’re a contractor—a talented one at that. But you’re also a customer service rep and marketer. You’re a networker and in charge of quality control.
You also have to manage your business’s finances. And even though this task is so central to your long-term success, it’s not easy. You face challenges, and those challenges could get in the way of your goals.
One potential solution? Investing in the best online payment options for contractors.
This can help you delight your customers with a friction-free billing experience.
At the same time, it can make organizing your money that much easier. You get accurate data in real time, and you can use this to inform your next steps.
Not sure where to start with online payments? This guide is here to help.
We’ll first touch on why you should accept online payments. Then, we’ll explore seven of the very best options out there.
We’ll explain which key features should be at the top of your priority list. We’ll also share some practical strategies for optimizing your cash flow.
To finish, we’ll give you some quick tips on choosing the right online payment option. Follow these and transform how your business accepts and manages payments.
Billing really can be more than an administrative function. With online payment options for contractors, it can become a strategic asset that helps your business compete.
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Why Your Contracting Business Should Accept Online Payments
We live in an everything-now culture. We don’t want to wait—we expect information to be available for immediate use.
This shift has a far-reaching ripple effect. It’s caused changes in consumer expectations.
Now, customers expect every interaction with a business to be effortless. No delays. No tedious workarounds. No waiting around.
It’s no wonder leaders are investing more in self-service and customer journey analytics (CJA). These two focus areas are directly related to the friction-free customer experience your clients crave.
That’s the big picture. Let’s zoom in on the practicalities.
When your business delivers on customer expectations through tools like online payments, you win their trust. You increase the likelihood that they’ll:
- Do business with you again
- Recommend you to friends and family
- Leave a positive review on Google Business, Facebook, or another platform
These outcomes increase loyalty. They also attract new customers. They give your business the ongoing stream of jobs it needs to be financially sustainable. They even power growth.
Benefits of Online Payments
What are the specific advantages of online payments?
One is customer convenience. They can pay you anytime, from anywhere. There are fewer barriers.
Another is you get paid faster. You don’t have to wait days or weeks. Online payments are processed almost instantly.
You also get quicker access to your money, which means less stress around meeting your expenses. You can budget, too, and make financial plans that will improve your business, like buying new equipment or hiring more staff.
FROM ONE OF OUR PARTNERS: Understanding Payments: How to Remain Competitive in a Changing Market
Challenges of Online Payments
Of course, online payments aren’t perfect. They have challenges, too.
Platforms charge transaction fees, which may seem like they are cutting into your profits (though they may turn out to be an investment!).
You can also expect a learning curve in the beginning. You’ll need to get to know the system.
Another challenge is that sometimes, technical issues can lead to delays. This can disrupt payments and cause frustration.
Types of Online Payments
You’re sold. Now you want to know, what are my options?
- You can use automated clearing house (ACH) transfers. These pull funds from the customer’s bank account.
- Credit cards are another common option.
- Payment apps like PayPal or Venmo are popular for smaller transactions.
There are more, too. We’ll explore them and their pros and cons in detail below.
The 7 Best Online Payment Options for Contractors
Thrill your customers, get paid faster, keep accurate records…the list of positive outcomes goes on.
But to take full advantage of online payment options for contractors, you need a solution that fits your business.
Below are seven contenders worth considering. We’ve included some pros and cons too. Use these to weigh the benefits and make an informed choice.
PayPal
PayPal has more than 431 million users worldwide.
It’s fast and easy to use. Plus, customers can pay using their credit card, bank account, or PayPal balance. They have even more options to choose from.
Pros:
- Trusted by many users
- Easy to integrate into invoices
- Offers buyer and seller protection
Cons:
- Transaction fees that could change
- Can hold funds for new accounts
Best for: Contractors who want a reliable and trusted payment solution
Square
Square is a one-stop-shop payment solution.
Your clients can pay via a mobile app. They can also pay with a credit card in person if you have a Square card reader.
Pros:
- No monthly fees—you pay per transaction only
- Flexibility to accept credit card payments in person or online
- Offers easy invoicing and receipt generation
Cons:
- Transaction fees that are similar to PayPal
Venmo
Venmo is a peer-to-peer payment app owned by PayPal. It’s one of the simplest online payment solutions.
Pros:
- Instant payments from customers
- No fees for personal transactions
- Great for quick, small payments
Cons:
- Not the best for business use unless set up as a business profile, which has fees
- Limited features compared to other platforms
Best for: Contractors who take smaller payments
Joist Payments
Joist is an invoicing app made specifically for contractors.
It simplifies the estimating and invoicing process. It also offers fully integrated payment processing through Joist Payments.
Pros:
- Built for contractors with integrated invoicing and estimating tools
- Accepts credit and debit cards, ACH bank to bank transfers, buy now pay later, and other payments directly from invoices
- Has quick mark-up tools to cover transaction fees
Cons:
- May not need all its features if you already have an invoicing system
Best for: Contractors who want an all-in-one tool for invoicing, project management, and payments
Zelle
Zelle is another peer-to-peer payment system. It connects with many of the biggest US banks.
Payments are processed directly between bank accounts. There’s no third party.
Pros:
- No fees for sending or receiving payments
- Fast transfers
- Easy setup through most banks
Cons:
- Customers need to enroll with Zelle to use it
- No invoicing or tracking features
Best for: Contractors who want fast, fee-free payments from local clients (it’s best for smaller jobs or repeat clients you trust)
Stripe
Stripe is a payment platform. Your customers can pay using various payment types, including credit card and ACH payments.
Pros:
- Lower transaction fees that are capped
- Supports recurring billing for repeat clients
- Customizable payment forms for websites
Cons:
- Potentially complex setup for some small business owners
Best for: Contractors who need flexible online payment solutions for larger or higher-value projects
QuickBooks Payments
QuickBooks is an accounting software with an integrated online payment system.
Pros:
- Integrates directly with QuickBooks
- Offers invoicing and payment tracking
- Accepts a range of payment options, including PayPal, Apple Pay, and Venmo
Cons:
- Need QuickBooks to use it
- Possible monthly fees depending on your QuickBooks plan
Best for: Contractors who already use QuickBooks for accounting and want to keep everything in one place
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Key Features to Look for in Online Payment Solutions
There are so many online payment options out there. How do you know which one to choose?
We suggest keeping an eye out for these must-have features:
Accessibility and Convenience
This goes both ways. You’re always on the go and jumping around between job sites. You need a platform that works wherever you are.
And for your customers? They want easy. They should be able to pay when and where suits them best.
Look for these features:
- Mobile accessibility, so you can send invoices and receive payments on the go
- Easy to use, so your clients don’t get stuck in the payment process
- Flexible payment options, so your clients can pay using their preferred method
Cost and Transaction Fees
Fees come with the territory. The goal is to keep them as low as possible—without compromising reliability or user-friendliness.
Prioritize these features:
- Lower transaction fees, keeping in mind that quality service still matters
- No hidden costs like monthly service charges you’re not aware of
Security and Integration
A secure payment system is non-negotiable. You don’t want to put your business or clients’ sensitive data at risk.
Choose a platform with these features:
- Robust security measures like encryption
- PCI compliance, so your business is protected
- Integration with or in-built accounting software, so your data is accurate
How to Optimize Your Cash Flow
Reliable cash flow is a must. It’s how you keep on top of your expenses. It’s how you keep your staff paid, your gas tank full, and your marketing campaigns running.
The more steady your cash flow is, the better you can plan ahead too. You can use financial predictions to make investments in your business’s growth. You can take steps to mitigate losses during quiet periods. And you can stock up to serve more clients during busy times.
Here are some practical ways you can optimize your cash flow:
- Set up automatic payments. These are great for your clients who need ongoing services—think monthly maintenance, as an example.
- Make sure your payment terms work for you. For example, you might offer a discount for early payment. This is a win for your business and your clients. Or you can request a deposit before work starts. This is a good option for larger projects.
- Introduce online payments that make billing a breeze. The easier something is to do, the quicker your clients will do it. Plus, some platforms offer features like invoice notifications. These can prompt forgetful clients to pay.
- Always follow up when an invoice goes unpaid. Don’t wait too long, either. Be friendly and polite. In your message, include instructions on how to pay.
- Keep an eye on your expenses—especially variable costs. Know exactly where your money is going and see if you can cut costs anywhere.
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Tips for Choosing the Right Online Payment Option for Your Contracting Business
Modernize your payments with an online payment platform. Here are some quick tips to help you make a smart choice:
- Set clear payment goals. Decide whether you need fast payments, low fees, or both. This helps you narrow down your choices.
- Consider your customer base. How old are they? What kinds of payment methods do you think they’d prefer?
- Look at the fee structure for each platform. See how it fits into your budget.
- Make sure you can send invoices and accept payments on the go.
Select a system that works with your existing accounting software. Or consider investing in an all-in-one platform.