Dual Pricing for Contractors: Experts Explain How To Eliminate Credit Card Fees
Credit card fees drain contractor profits on every transaction. Dual pricing technology shifts processing costs to card-paying customers while offering fee-free ACH alternatives, letting construction businesses keep more revenue without raising base prices or losing clients.
(firmenpresse) - Key SummaryUnderstanding the cost burden: Credit card processing fees typically consume 2-4% of every contractor payment, costing construction businesses thousands annually on standard project invoices.Dual pricing mechanics: This pricing model displays two amounts at checkout??a lower cash/ACH price and a slightly higher credit card price??automatically passing processing costs to customers who choose cards.Legal compliance matters: Dual pricing differs from surcharging and remains legal across all U.S. states when implemented correctly with proper disclosure at point of sale.Payment flexibility wins: Customers appreciate having options, and most choose ACH when they understand the cost difference, reducing your overall processing expenses significantly.Modern platforms simplify adoption: Specialized contractor payment systems now automate dual pricing calculations, invoice adjustments, and compliance requirements without manual intervention.You just closed a $25,000 roofing job, the client pays with a credit card, and you lose $750 to processing fees before you even buy materials. That s the reality for thousands of contractors across the country, where every swipe costs money and every tap takes a cut. The fees add up fast, and they hit construction businesses harder than almost any other industry.
Why? Project values run high and margins run thin, which means you can t absorb a 3% hit on a $50,000 bathroom renovation and stay profitable.
The Hidden Tax on Construction PaymentsCredit card companies charge processing fees on every transaction, and while rates vary, most contractors pay between 2% and 4% per swipe. On smaller jobs, you might not notice, but on larger projects, the numbers become painful.
A $10,000 HVAC installation costs you $300 in fees, a $30,000 kitchen remodel means $900 gone, and a $100,000 addition could mean $3,000 or more disappears before you pay a single subcontractor. You face a choice: eat the cost and accept lower margins, or raise your prices to compensate and risk losing bids??neither option feels great.
Some contractors tried adding surcharges to credit card payments, but that approach created problems because customers complained, some states banned the practice, and the perception of "punishing" people for using cards damaged relationships.
What Dual Pricing Actually DoesDual pricing takes a different approach by displaying two prices from the start instead of adding fees on top. The cash price represents your true cost, the card price includes processing fees, and customers see both options before choosing which payment method works for them.
Here s the difference: a surcharge feels like a penalty, while dual pricing feels like a discount for paying with cash or ACH. The psychology matters because people respond better to "save 3% by paying with ACH" than "pay 3% extra for using a card." You re not hiding anything or tricking anyone??you re simply being transparent about the real cost of different payment methods.
How the Math Works in Your FavorLet s say you invoice a client $20,000 for a deck replacement, and under the old system, they pay by card so you receive $19,400 after fees, which means you lost $600. With dual pricing, you display two amounts: a cash/ACH price of $20,000 and a credit card price of $20,600.
If the customer pays by card, you receive the full $20,000 after processing fees, and if they choose ACH, you receive $20,000 and pay minimal processing costs (usually under $10). Either way, you keep more money, your quoted price reflects your actual cost, and the customer makes an informed choice.
Most customers choose ACH when they understand the difference, and business owners especially prefer bank transfers for large payments because they avoid their own card fees too.
Legal Considerations You Need to KnowDual pricing operates differently than surcharging in the eyes of the law because surcharges add a fee to card transactions while dual pricing sets two separate prices. Federal law allows dual pricing nationwide, though you must disclose both prices clearly before the transaction, which means your invoices should show the cash price and the card price while your contracts explain the difference.
Some payment processors require specific language, so check your merchant agreement and make sure your implementation meets card network rules. The key is transparency: customers need to see both prices before they decide, with no surprises at checkout, no hidden adjustments, and just clear choices.
Setting Up Dual Pricing Without HeadachesManual dual pricing creates work because you have to calculate fees, adjust invoices, track which customers paid which way, and reconcile everything at month-end. Modern payment platforms handle this automatically??you enter your base price, the system calculates the card price, generates invoices with both amounts, and lets customers click their preferred payment method while the platform processes everything.
Integration MattersYour payment system should connect to your accounting software. QuickBooks compatibility saves hours of duplicate entry and automated deposit tracking keeps your books clean. Look for platforms that understand construction billing, since progress payments need different handling than retail transactions, change orders complicate invoicing, and material deposits require flexibility.
Real-World Impact on Your Bottom LineConsider a mid-sized contractor running $1 million in annual revenue??under traditional processing, credit card fees could total $30,000 per year, which represents a work truck, a skilled employee, or money leaving your business for no added value. With dual pricing, if half your customers switch to ACH, your effective fee rate drops to around 1.5%, saving you $15,000 annually that you can reinvest in equipment, marketing, or your team.
The savings compound over time because year after year, you keep more of what you earn, and your pricing becomes more competitive since you re not building hidden fees into every quote.
Customer Reactions MatterSome contractors worry about customer pushback and wonder whether clients will feel annoyed by two prices or think you re trying to squeeze them, but experience shows otherwise. Business clients appreciate transparency, homeowners understand fees once you explain them, and most people already know credit cards cost someone money.
Frame it correctly: you re not charging more for cards, you re offering a discount for ACH, and the distinction matters. Provide clear instructions for ACH payments because some customers have never done a bank transfer, so walk them through it and make it easy??the first time takes effort, but after that, they prefer it.
Choosing the Right Payment PlatformNot all payment processors support dual pricing correctly because some require manual adjustments, others don t comply with card network rules, and poor implementation creates compliance risks. Construction-specific platforms understand your needs since they handle job costing differently than retail sales, accommodate deposit schedules, and track change orders without creating invoice chaos.
Speed Matters TooSame-day or next-day deposits keep cash flow moving because construction projects burn cash quickly and waiting a week for funds creates problems. Look for platforms that contractors built for contractors. Companies founded by people who ve run construction businesses understand the pain points and have solved the problems you face daily because they faced them first.
Payment solutions designed specifically for construction professionals streamline the entire process from quote to final payment while eliminating manual fee calculations, reducing time spent chasing payments, and putting you back in control of your cash flow.
Making the SwitchTransitioning to dual pricing doesn t require overhauling your entire business??start with new clients and explain the pricing structure upfront, since most people don t question it. For existing clients, introduce it at contract renewal by sending a brief explanation that emphasizes the benefits: more payment options, faster processing, and clearer invoicing.
Train your team because everyone who touches invoicing needs to understand how it works, and consistent messaging prevents confusion. Monitor results by tracking how many customers choose each option, watching your effective processing costs drop, and calculating your savings monthly.
The construction industry runs on tight margins where every percentage point matters, and dual pricing helps you protect those margins without raising prices or cutting quality. You built your business on hard work and skill, so you deserve to keep what you earn??let your payment system work for you instead of against you.
FAQWhat s the difference between dual pricing and surcharging?Surcharging adds a fee on top of your base price when customers pay with credit cards, while dual pricing displays two separate prices from the start??one for cash/ACH and one for cards. The psychological impact differs significantly because surcharges feel like penalties while dual pricing feels like offering a discount for alternative payment methods.
Do I need to tell customers about both prices before they pay?Yes, transparency is required both legally and practically, which means your invoices must show both the cash/ACH price and the credit card price before the customer chooses their payment method. This disclosure protects you from compliance issues and helps customers make informed decisions about how they want to pay.
Will dual pricing hurt my relationship with customers?Most contractors find the opposite is true because customers appreciate understanding where their money goes and business clients especially value having options. When you frame it as "save money by paying with ACH" rather than "pay extra for cards," people respond positively, and clear communication prevents misunderstandings.
How much can contractors realistically save with dual pricing?Savings depend on your annual revenue and customer payment preferences, but here s an example: a contractor processing $500,000 yearly through credit cards at 3% pays $15,000 in fees, and if dual pricing shifts half your customers to ACH (which costs under 1%), you could save $7,500 or more annually while larger operations save proportionally more.
Where can I find contractor-specific payment platforms that handle dual pricing?Specialized payment platforms built by construction professionals offer dual pricing automation, ACH processing, integrated invoicing, and faster deposits designed specifically for contractor needs.
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Builder Pay Pro
Builder Pay Pro
https://builderpaypro.com/
101 Parkshore Dr #100
Folsom
United States
Datum: 21.10.2025 - 13:01 Uhr
Sprache: Deutsch
News-ID 728089
Anzahl Zeichen: 0
contact information:
Contact person: Matt Loughran
Town:
Folsom
Kategorie:
Typ of Press Release: Unternehmensinformation
type of sending: Veröffentlichung
Date of sending: 21/10/2025
Diese Pressemitteilung wurde bisher 95 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Dual Pricing for Contractors: Experts Explain How To Eliminate Credit Card Fees"
steht unter der journalistisch-redaktionellen Verantwortung von
Builder Pay Pro (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
