I chased a $1,100 check for six weeks once. The customer was not trying to stiff me — the check just "got lost in the mail" twice and then "the bank had a hold on it." By the time I finally got paid, I had spent three hours in follow-up calls and texts. That was the last check I ever accepted from a new customer. Here is what I learned about getting paid faster and keeping more of what you earn.
Cash: Simple but Limited
Cash has zero processing fees. You get paid instantly. There is no chargeback risk. For small jobs under $200, cash is still king in many markets.
The downsides: large cash payments create record-keeping headaches at tax time, customers rarely carry enough cash for bigger jobs, and cash-only businesses look unprofessional to higher-end clients and property managers. You also lose the paper trail that protects you in disputes — if a customer claims they already paid you and you have no receipt or transaction record, it is your word against theirs.
If you accept cash, always provide a written receipt. A simple receipt book from the office supply store costs $5 and creates the documentation trail you need.
Checks: Declining but Not Dead
Checks were the standard for trade work for decades, and older customers still prefer them. The problem is that checks introduce a delay (deposit, then wait for it to clear) and a risk (bounced checks cost you $25-35 in bank fees plus the headache of collecting). A bounced check on a $500 job means you did the work, bought the materials, and got paid nothing.
If you accept checks, deposit them immediately — same day if your bank has mobile deposit. For new customers, consider requiring payment before you leave the job site so you can verify the check details on the spot. For large jobs over $1,000, a cashier's check or bank check eliminates the bounce risk.
Credit and Debit Cards: The New Standard
Card payments are where the industry has moved, and for good reason. You get paid immediately (funds typically settle in one to two business days), there is a clear transaction record, and customers can pay larger amounts without planning ahead. Accepting cards also opens the door to commercial and property management clients who almost exclusively pay by card or bank transfer.
The cost: processing fees run 2.6 to 3.5 percent per transaction depending on your processor. On a $500 job, that is $13 to $17.50. On a $2,000 project, it is $52 to $70. That is real money, but consider what you are buying: instant payment, no collection hassles, and access to customers who would never hire a cash-only handyman.
Popular processors for tradespeople:
- Square: 2.6% + $0.10 per tap/swipe. Free card reader. Simple app. The default choice for most small operators.
- Stripe: 2.9% + $0.30 online, 2.7% + $0.05 in person. Better for online invoicing.
- PayPal/Venmo: Familiar to customers but higher fees (3.49% + $0.49 for commercial transactions). Good as a secondary option.
Digital Invoicing: Getting Paid Without Awkward Conversations
The best payment system I have found is sending a professional digital invoice as soon as the job is done. The customer gets a text or email with a clear breakdown of the work, the total, and a "Pay Now" button. No awkward standing-in-the-kitchen-waiting-for-a-check moment. No "I will mail you a check." Just a tap on their phone and the money is in your account by tomorrow.
I started sending digital invoices through HandyBook about a year ago and my average time-to-payment dropped from 8.5 days to 1.3 days. That is not a typo. When you make it easy to pay, people pay fast. When you make them find a checkbook, write out the amount, find an envelope, and mail it, they procrastinate.
Collecting Deposits on Larger Jobs
For jobs over $1,000, require a deposit before starting work. Industry standard is 25 to 50 percent upfront, with the balance due on completion. The deposit covers your material costs and ensures the customer has skin in the game. Without a deposit, you risk buying $600 in materials for a bathroom job and having the customer ghost you before you start.
My policy: 50 percent deposit on jobs over $1,500, 30 percent on jobs between $750 and $1,500, and full payment on completion for anything under $750. I have never had a customer push back on this — they expect it from professional tradespeople.
The Real Cost of Late Payment
Every day a customer owes you money is a day you are financing their home improvement project. If you have $3,000 in outstanding invoices and your average collection time is two weeks, that is $3,000 of your money sitting in other people's pockets. Over a year, slow collections can mean $5,000-10,000 that should be in your bank account but is not.
Set clear payment terms (due on completion for small jobs, net 7 for larger projects) and follow up immediately when a payment is late. A simple automated reminder — "Hi [Name], just a reminder that invoice #1234 for $475 is due today" — collects most overdue payments without confrontation. Make it easy to pay, make your terms clear, follow up promptly, and you will spend almost zero time chasing money.