The Best Payment Methods for Small Businesses

Originally published in July 2020. Last updated on October 8, 2025.

Offering the right payment methods helps you get paid faster, improves your customer experience, and simplifies accounting. 

And the easier it is for clients to pay you, the steadier and more reliable your cash flow will be.

From ACH payments and bank transfers to cash and checks, learn the best payment methods for small businesses in this guide. 

1. Cash

Cash is the most straightforward payment method. It’s instant, accessible to most people, and usually doesn’t come with any fees. 

But it’s also easy to misplace, hard to track, and requires a physical handoff. 

It works best for: 

• Service providers whose clients prefer not to use online or digital payment methods
• Recurring services, like weekly cleaning or lawn care, where you regularly see clients in person
• Small or one-off jobs, where collecting cash avoids processing fees

For example, if you’re a handyman and you replace a door handle or patch a small piece of drywall, cash is a simple way to settle the bill on the spot.

Pro Tip: Collect cash directly from clients at the job site before you leave. Count it carefully, provide a receipt, and record the payment in your records. Store it securely until it’s deposited.

2. Checks

Although many commercial clients may still pay with checks, they’re less common for residential work. Even so, some customers may prefer to use them if they don’t feel comfortable using online payment methods or credit cards. 

Checks don’t come with any fees, and if they’re ready before you leave the job, they’re easy to collect. But if not, you may need to make an extra trip to pick them up and another to deposit them at the bank.

There’s also no guarantee the client has money in their account until you deposit it. That means you have to trust that a client’s check won’t bounce and risk having to chase down payments if it does. 

Accepting checks can work when: 

• You have clients who can’t or don’t want to use online payment methods
• You’re doing work for a commercial or government client
• You’re billing higher-ticket work that makes paying with cash impractical

For example, if you’re a general contractor managing a kitchen renovation, a client may prefer to pay with a check instead of withdrawing several thousand dollars in cash. 

Checks usually take 1-3 business days to clear, but larger checks or those from unfamiliar accounts may be subject to a longer hold. 

Pro Tip: Before depositing checks, double-check that the amount, date, name, and signature are correct.

3. Credit and debit cards

Online credit and debit payments are a popular payment method for many service providers because they’re convenient, and most customers are familiar with them. They’re also the fastest payment method after checks and cash. 

Credit and debit card payments are common across various industries because they keep cash flow steady, are easy to track, and integrate well with accounting software. 

They work best for: 

• Service providers who don’t always see customers in person or don’t have time to collect on-site payments, like pool cleaners accessing the yard with a code or key
• Customers who prefer to make payments online at their convenience
• Service teams that don’t handle or carry cash from clients, such as pressure washing crews 

To accept credit and debit payments, you’ll need to choose a payment processor that will transfer the funds from your customer’s account to yours. In exchange for securely transferring funds between accounts, some payment processors charge a monthly base amount as well as a fee per transaction, like 1%.

Debit and credit card payments usually take 2-5 days to be deposited into your account. 

READ MORE: How to accept credit card payments

4. Payment platforms

Payment platforms are similar to payment processors but provide a full set of tools to handle payments and related tasks (like invoicing and accounts receivable) in one place. 

For example, with Jobber Payments you can: 

• Instantly generate professional-looking invoices as soon as the job is done
• Accept a variety of payment methods, like credit, debit, digital wallets, and bank transfers
• Automatically charge saved cards on file for recurring work like weekly lawn care or cleanings
• Stay on top of every invoice with automatic invoice reminders for overdue payments

Payment platforms are a good option for service providers who: 

• Need a payment process that includes quotes, invoices, payment processing, and tracking
• Want to offer multiple payment methods to customers
• Have recurring services and want to automate billing and follow-ups
• Prefer to manage payments on a single platform instead of using multiple tools

For example, if you offer seasonal snow removal, you could use a payment platform to send digital invoices to clients after a storm so they could pay online. 

Payment platform costs vary depending on your needs, such as the types of payments you want to accept and the number of transactions you need to process each month. Some payment platforms may charge a monthly subscription fee as well as a fee per transaction.

The same goes for payment processing times—a credit card payment may take 1-3 days to be deposited, while funds from a digital wallet may be instantly available.

5. Customer financing

Customer financing is when you offer customers a way to pay for your services on credit, either through a third-party lender or an in-house loan. 

This payment method works well for: 

• Clients who can’t pay for services upfront or in full, like large or unexpected jobs
• Service providers that book a lot of high-value projects
• Customers who need to spread costs over time
• Businesses that want to offer monthly payment options to clients

To use customer financing, you need to decide whether you want to offer it yourself or through a lender like Wisetak, Affirm, or Klarna. 

If you choose a third-party financing platform, you’ll receive payment in full upfront from the lender, and the customer will make installment payments to them until their balance is cleared. 

If you offer customer financing yourself, it will be up to you to decide which customers you extend the payment option to based on considerations like the job, your relationship, and how it will impact cash flow.

Customer financing fees usually range between 3-6% per transaction or a flat fee of around $50 a month, depending on the transaction value, type of service, and payment terms. Payments are typically processed within 1-3 days if you use a third-party lender. 

If you provide your customer with an in-house loan, you will need to determine the amount of each payment, when installments are due, and whether you’ll charge interest. You can either offer a loan for the entire amount of the job or ask for a deposit up front.

Through Jobber’s Wisetack integration, you can offer flexible payment options to customers without putting your business at risk.

6. Bank transfers

Bank transfers are another online payment method that service providers can use to get paid faster. They transfer funds directly from one bank account to another and are typically made via: 

• Automated Clearing House (ACH) transfers
• Wire transfers
• Email transfers

All three types of bank transfers are very secure, as transactions are processed between banks. They work best for: 

• Clients who prefer not to use cash, checks, or cards for large payments
• Service providers handling high-value jobs where credit card fees could be costly
• Businesses managing remote or off-site jobs where in-person collection isn’t possible

How long transfers take and how much they cost depends on the method you use. 

ACH transfers

Offering ACH payment is a low-cost option, but it may take longer to deposit (1-3 days) than other types of bank transfers because they’re processed in batches. ACH payments are only available in the U.S.

ACH transfers are often used for direct and recurring payments, and you can accept them using Jobber Payments, helping you to get paid faster for less.

Wire transfers

Wire transfers are faster than ACH transfers and can be deposited within 1-2 days, but come with a higher cost (generally $10-$50+) because they’re processed individually. 

They work well for urgent or high-value payments and can be used for domestic and international transactions.

Email transfers

Email transfers are the fastest type of bank transfer and are usually processed either instantly or within a few hours, depending on the bank and transaction. 

While sending email transfers comes with a small fee ($1-$1.50 per payment), receiving them is free. 

Email transfers are more popular in Canada than in the U.S.

7. In-person payments

In-person payments aren’t only for cash and checks. Some payment processors allow you to accept electronic payments in person using a mobile app or specialized hardware.

For example, with Tap to Pay, you can use a card reader or a phone app to accept payments from credit and debit cards before you leave a job site, saving you from having to worry about losing or misplacing cash or checks. 

In-person payments are a good option for: 

• Service providers who prefer to collect payment at job sites
• Businesses that want to move away from cash and checks
• Clients who like to pay with credit or debit cards

Tap payments usually take between 2 and 5 days to process, and costs can vary based on whether you need to purchase a card reader. With Jobber’s Tap to Pay feature, all you need is your phone—no additional hardware required.

1. Improve cash flow

The more payment methods you offer, the easier it is for clients to pay you on time and in full. This helps to improve cash flow by keeping it steady and balanced, preventing mishaps caused by damaged checks, misplaced cash, or clients who find your existing payment options inconvenient.

2. Boost customer experience

Clients like to work with businesses that prioritize their experience, and offering electronic payment methods makes paying you more straightforward and convenient. Online payment methods are also more secure and ensure that your customers’ financial payment information is protected, building trust and confidence in your business.

3. Get more leads

The more payment options you offer, the more customers you serve. If a customer who doesn’t carry cash has to choose between a service provider who accepts online payments and another who only accepts cash, their decision will probably be pretty easy. 

Making online payment methods available to your clients also shows that your business is keeping up with current trends, positioning you as both forward-thinking and professional. This can give you a competitive edge over other service providers who are resistant to change.

4. Reduce your administrative workload

Online payment methods are easier to track, monitor, and process than paper payments. And if you use a payment platform like Jobber, it can handle everything from invoicing and payment processing to online booking and scheduling. That gives you back the time you need to focus on growing your service business instead of just running it.

1. Jobber

Jobber Payments is built for home service businesses like yours, making it the best payment processing platform for service providers. You can use it to: 

• Accept online credit and debit card payments
• Receive ACH bank transfers for larger jobs
• Accept payments with one tap on job sites
• Set up automatic payments for recurring work
• Collect tips from happy clients

A Jobber subscription that includes payment processing starts at $29/mth for a single user. 

You can also use Jobber to manage your entire payment process:

• Convert approved quotes into invoices instantly
• Send automated payment reminders and follow-ups
• Track payment status in real time
• Generate and send receipts automatically

Plus, it’s safe, secure, and fully compliant with industry standards, so you and your clients can trust every transaction.

2. PayPal

PayPal is one of the most widely recognized payment platforms. You can use it to make payments using credit cards, debit cards, and your PayPal balance, and funds are typically available within a day. 

It also offers contactless payment options, like tap, and you can accept payments from mobile wallets, like Apple Pay and Google Pay. 

Rates fall between 2.29 and 4.99% depending on the type of transaction, and card readers start at $29. However, you can accept tap payments on your phone for free with the PayPal app.

Unlike Jobber, PayPal focuses on transferring funds between accounts. You can’t use it to create quotes, set up automated invoicing, or receive recurring payments.

3. Stripe

With Stripe, small businesses can accept a variety of payment methods, including: 

• Credit and debit cards
• ACH transfers
• Mobile wallets
• Tap to pay

Payments typically arrive within 2-7 business days, but instant transfers are also available for a fee and minimum transfer amount. 

Although Stripe can work well for service businesses, some find their fees to be high. For example, domestic card transactions cost 2.9% + $0.30, and card readers cost $59-$349, depending on the type you choose. 

It’s also more tailored to small businesses that require customizable payment processing, so implementation may be too technical for your needs. 

For it to work with your invoicing, scheduling, or client management software, you’ll need to set up an integration.

4. Square

Square is a popular payment processor that allows small business owners to accept payments through cards, tap, bank transfers, and mobile wallets. 

Payments typically arrive within 1-2 business days, and rates range from 2.6% + $0.30 to 3.5% + $0.15 per transaction. Depending on your needs, you may also need to pay a plan fee of $29+ per month. 

Hardware costs vary from free to $799. 

While it works well for accepting payments, you can’t use it for online booking, job costing, or upselling like Jobber. If you use Square, you’ll need to have multiple platforms to manage your business, clients, employees, and payments.

1. Customer preferences

Ask your customers which payment methods they prefer. Do they want to pay through tap while you’re at their house? Or would they prefer the option to make a credit card payment on their own time?

Go with the payment methods your clients are most interested in. For example, credit and debit card payments are a popular choice, but fewer people prefer to make payments using a PayPal balance.

2. Costs and fees

Payment processors come with fees that eat into profit margins. If you regularly book small jobs and your profit margins are already tight, using a payment processor may not be worth it. 

But if you make enough to cover the additional expense or you want to offer a variety of payment methods to attract new clients, the benefits could outweigh the costs. 

Take a look at your revenue forecasting to get an idea of how much you can expect to make in the future to figure out whether you can afford to invest in a payment processor. 

Choose the platform and payment methods that best fit your budget and needs. For example, if you want to offer tap payments, hardware costs range anywhere from free to hundreds of dollars, based on what you want it to do.

3. Security

Accepting online payments comes with data and security risks. It’s important to choose safe and secure payment methods provided by reputable payment processors. 

For example, make sure the payment methods and processor you choose protect customer details and use security measures like account verification. They should also store sensitive information using encryption to reduce the risk of fraud and data leaks.

4. Processing times

Some payment methods take longer to process than others, which can disrupt cash flow. Based on your bills for overhead costs and operating expenses, choose payment methods that deposit money quickly enough to keep your business running smoothly. 

For example, credit card payments can be faster than ACH payments, but only by a day or two.

5. Software compatibility

Which payment methods easily integrate into your existing software? And how many platforms do you want to use to run your business? 

Field service management software like Jobber lets you manage everything in one place—from booking jobs and scheduling teams to processing payments and tracking expenses. 

That way, you can offer the most popular payment methods to your customers without having to jump between multiple platforms. Not only can this save you time, but it also keeps your business organized and makes payment processing easy and stress-free.