Construction businesses face higher payment processing fees than retail or service industries due to project size, transaction risk, and industry classification. Understanding why helps contractors find better solutions. To learn more, visit: https://builderpaypro.com/
You run a coffee shop. Average sale: twelve bucks. You run a roofing company. Average invoice: twelve thousand. Both of you accept credit cards. Guess who pays way more in processing fees? If you said the roofer, you're right. But it's not just about the dollar amount. Construction businesses get hit harder by payment processors for reasons most contractors never think about. Let's break down why your industry pays more than almost anyone else. First, transaction size matters. Payment processors see big invoices as bigger risks. A disputed $15 charge at a restaurant costs the processor almost nothing. A disputed $40,000 kitchen renovation? That's a massive liability. Chargebacks on large amounts make processors nervous. They charge higher rates to cover potential losses. Second, construction projects take time. You might collect a deposit in January, do the work in February, and receive final payment in March. That timeline creates risk. The longer the gap between payment and project completion, the higher the chance something goes wrong. Processors price that risk into your fees. Third, your industry classification costs you money. Credit card companies assign merchant category codes to every business. Construction sits in a high-risk category alongside industries like travel and electronics. Why? Higher dispute rates. Customers sometimes claim work wasn't completed correctly. They file chargebacks. Even if you did nothing wrong, the perception of risk drives up your rates. Fourth, you're dealing with consumers and business clients. Consumer transactions carry different risk profiles than business-to-business sales. Mixed transaction types often mean higher blended rates. Processors can't give you the lowest commercial rates because you also serve homeowners. Fifth, project-based billing creates processing challenges. Retail businesses charge once per transaction. You might need multiple payments on one job: deposit, progress payment, final balance. Each transaction costs money. Multiple charges on the same project compound your fees quickly. Here's what really stings: you can't avoid accepting cards. Customers expect payment flexibility. Businesses that only take checks lose jobs. You're stuck paying high fees or losing competitive advantage. Some contractors try to pass fees directly to customers through surcharges. That creates friction. Others just eat the cost and accept lower margins. Neither solution feels right. There's a better approach. Payment platforms built specifically for construction understand these challenges. They use strategies like dual pricing to eliminate fee burdens without annoying customers. They offer low-cost ACH alternatives. They provide faster deposits so your money isn't sitting in limbo. Builder Pay Pro was created by contractors who got tired of losing thousands to processing fees. They built a system that addresses the unique challenges construction businesses face. Visit the link in the description to see how Builder Pay Pro helps contractors keep more of what they earn. Builder Pay Pro City: Folsom Address: 101 Parkshore Dr #100 Website: https://builderpaypro.com/