Credit card vs. check payment. What’s the difference and why does it matter? Getting paid shouldn’t be complicated, but when you’re running a home services business, the way your customers pay can impact everything from your cash flow to customer satisfaction. Should you stick with traditional checks, go all-in on credit cards, or offer both?
In this guide, we’ll break down the pros and cons of check and credit card payments, so you can make the right call for your business and your bottom line. Plus, we’ll show you how Project 2 Payment makes the whole process easier, faster, and more affordable.
What’s the Difference Between Checks and Credit Cards?
At first glance, the difference between checks and credit cards might seem obvious: checks are paper, cards are plastic. But when it comes to how they work for your business, there’s more going on behind the scenes.
Checks, whether paper or electronic, are essentially a promise from your customer’s bank account to yours. While we often picture someone physically writing a check, they can also be processed digitally through your invoicing software; this is called an e-check or, more officially, an ACH payment. The upside? No more trips to the bank. The downside? It can still take five to seven days for the funds to clear.
Credit cards, on the other hand, are processed much faster, typically within one to two business days. But speed comes at a cost. There are multiple types of cards—rewards cards, corporate cards, and more—and each may carry a different processing fee, depending on how your payment system is set up. For businesses using a traditional merchant account, that can lead to some unexpected costs.
At the end of the day, both checks and credit cards help you get paid, but they follow different routes, timelines, and fees to get there. Understanding those differences can help you make smarter decisions for your cash flow and customer experience.
The Pros and Cons of Accepting Checks
Checks may seem old-school, but they still have a place in the payment mix for many home services businesses. Depending on your customer base and cash-flow needs, accepting checks could be helpful or create extra headaches.
Pros of Accepting Checks
1. Lower Processing Fees
Checks that are physically deposited do not have transaction fees that come with credit card payments. When taking an e-check, the transaction fees are typically much lower than credit card transaction fees. That means you keep more of your hard-earned money, especially on larger invoices.
2. Familiar for Older Customers
Some customers, especially older homeowners, still prefer to pay by check. Offering this option can make it easier to serve a broad range of clients and maintain good relationships with longtime customers.
Cons of Accepting Checks
1. Takes Longer to Clear
Checks can take nearly a week to clear, typically five to seven days, which means you’re waiting longer to access your money. That can slow down your ability to pay for materials, subcontractors, or other business expenses.
2. Risk of Bounced Checks
If a check bounces, you may face bank fees, and you’ll still need to track down the customer for payment. That adds extra time and stress to your day. Check return rate is about 0.5%, or roughly 5.5 per 1,000 checks.
3. No Guarantee of Funds
With checks, there’s no instant verification that funds are available. Even well-meaning customers can overdraw their accounts, leaving you without payment after the work is already done.
The Pros and Cons of Accepting Credit Cards
Credit cards have become the go-to payment method for many customers, and for good reason: They’re quick, convenient, and often preferred in today’s fast-paced, digital-first world. But for home services businesses, there are a few trade-offs to keep in mind.
Pros of Accepting Credit Cards
1. Instant Approval
Credit card payments are processed in real time, so you know immediately whether a transaction has gone through. That gives you peace of mind and helps eliminate the uncertainty that comes with waiting on checks.
2. Easier for Most Customers
Today’s customers expect the ability to pay with a card, especially younger homeowners. Offering credit card payments makes the process easier and more convenient, which can lead to faster bookings and better customer experiences.
3. Helps Reduce Late Payments
With tools like Quick Pay and instant invoices (available through Project 2 Payment), customers can pay by card with just a few clicks. The simpler the payment process, the less likely it is you’ll have to chase down payment for overdue invoices.
Cons of Accepting Credit Cards
1. Higher Processing Fees
Credit card transactions come with processing fees, which typically range from 2% to 4%. While processing fees increase costs, many businesses find the convenience and speed of payment worth the trade, especially when you factor in reduced admin time.
Want to better understand how these fees work and what they’re really costing you? Read our breakdown of the true cost to accept credit cards.
2. Disputes and Chargebacks
Occasionally, customers may dispute a charge, triggering a chargeback. This means the funds are pulled from your account until the issue is resolved. Though rare, chargebacks can be time-consuming and frustrating to deal with.
How Project 2 Payment Makes It Easy and Affordable
Whether your customers prefer checks, credit cards, or something in between, Project 2 Payment gives you the flexibility to accept all different types of payment in a way that works for you and your customers, without the stress or high fees.
Here’s how:
Project 2 Payment App
No need to be tied to a desk. With the Project 2 Payment mobile app, you get access to the same powerful features as the desktop version, on the go. Create estimates, send invoices, and accept payments right from your phone, whether you’re in the field or at the office.
Email Invoices With a Payment Link
Make it easy for customers to pay by sending digital invoices with a secure payment link. Customers can click and pay using their preferred method with no need to download anything or create an account.
Payment Web Form
Looking for a flexible, all-purpose way to collect payments? Share a payment web form, otherwise known as a payment page, on your website or through text and email. It’s a professional, contactless way to take payments anytime, anywhere.
Payment QR Code
Each invoice you send through Project 2 Payment comes with a unique QR code. Customers just scan the code with their phone camera and pay instantly—no typing, no confusion.
Payment Reporting for All Payment Types
Whether you’re collecting checks, credit cards, or a combination, Project 2 Payment keeps your records in one place. Easily track all incoming payments, view detailed reports, and stay on top of your cash flow with less manual work.
Bonus Feature: Tipping
Want to get recognized for going above and beyond? Make it easy for customers to say thanks. Project 2 Payment includes a built-in tipping feature, so clients can show their appreciation for great service—no awkward conversations or extra setup needed.
Simple, Transparent Pricing
Project 2 Payment is built to support small and growing home services businesses with straightforward, affordable pricing—no surprise fees, no complicated tiers.
Offer your customers more ways to pay, including credit cards and eChecks, at some of the lowest rates in the industry:
- Credit card payments: just 2.9% + 30¢ per transaction
- eChecks (ACH payments): only 0.5% + 25¢ per transaction
Whether you’re getting paid in the field or online, you’ll save time and keep more of what you earn.
The Best Payment Method? The One That Works for You.
At the end of the day, there’s no one-size-fits-all answer. Checks might save you on fees, but credit cards can help you get paid faster. The key is offering flexibility, so customers can pay the way they want and you can keep your business running smoothly.
With some of the most affordable payment processing rates available and powerful features designed just for home services pros, Project 2 Payment makes it easier to accept payments your way.
Want to simplify payments for your home services business? Project 2 Payment can help.