Why won't contractors take credit cards for large deposits?
Contractors often require checks for large upfront deposits before ordering materials, forcing property owners to drain thousands from their checking accounts all at once. This inflexibility strips away cash buffer right when other major bills like property taxes and insurance hit, making it impossible to smooth out major expenses using available credit lines.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
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- 1Asking the contractor to accept a credit card with a processing fee addedDid this help you?
- 2Using third-party bill payment services like Plastiq to pay contractors with a credit card via checkDid this help you?
- 3Requesting a materials list from the contractor to order the supplies directly using a credit cardDid this help you?
- 4Offering to cover the credit card processing feeDid this help you?
- 5Requesting Net 30 or other payment terms from the supplierDid this help you?
- 6Obtaining a line of credit from a bankDid this help you?
- 7Asking to pay prior to shipping or structuring a deposit with the balance CODDid this help you?
- 8Using third-party services like Plastiq to pay vendors with a credit cardDid this help you?
- 9Asking vendors if they will accept credit cards for an extra percentage feeDid this help you?
- 10Opening new checking accounts to earn bank sign-up bonuses instead of credit rewardsDid this help you?
- 11Paying via cashiers check, personal check, or bank transferDid this help you?
- 12Getting multiple quotes to compare standard industry rates and deposit structuresDid this help you?
- 13Negotiating smaller deposit percentages (10-20%) with milestone-based paymentsDid this help you?
- 14Using a construction escrow account to tie payment releases to verified work completionDid this help you?
- 15Refusing to sign and finding alternative contractors who require lower depositsDid this help you?
- 16Checking state statutory limits regarding maximum allowable contractor depositsDid this help you?
- 17Negotiating a staged or tiered payment schedule tied to material deliveryDid this help you?
- 18Putting the deposit money into a high-yield CD or savings account to earn interest and postponing the projectDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“We're placing our biggest inventory order so far and I completely forgot this supplier is ACH only. Never bothered me when I was sending them $1,500. This invoice is a little over $13k and I'm looking at it differently.”source ↗
“We've got sales coming in normally and the money is there but I would rather keep that $13k in the account while the inventory is being made and put the purchase on the business card instead.”source ↗
“Then he sends me the deposit amount and I remember why I kept putting it off. He needs a check before he orders everything, property taxes just came out and insurance is due later this month”source ↗
“I can cover it but I really don't want another $6k disappearing from checking this week. I've got a card sitting there with plenty of room on it which would make the timing a lot easier, except obviously the contractor doesn't take cards”source ↗
“This is why I hate checks for big contractor jobs. Not because I can't cover it, just because there's zero flexibility once that money leaves.”source ↗
“We are about to sign a contract for a siding and window replacement project costing about $100k. The contract calls for 50% deposit at signing.”source ↗
“I've heard horror stories about contractors taking deposits and disappearing, or doing shoddy work and then demanding final payment. I don't want to be paranoid, but 50% before a single tile is laid feels like a lot of risk on my side.”source ↗
“50% down for work that's half a year out would make me nervous too.”source ↗
“Yes it's reasonable. There's no world where I'd pay a 50% deposit, even if they were starting tomorrow.”source ↗
“Looking back, what I wish I had included in the contract was an escrow release with my approval of work. Because what happened was I paid half up front, they started the job, and then it was just excuse after excuse with no return to the job site.”source ↗
“If the company goes out of business in those 7 months, you will be out $50k with no recourse.”source ↗
“Helping sort out payments for a wedding and the venue wants the next installment by check or bank transfer. I wasn't expecting that considering everything else for the wedding has gone on a card. It's a pretty big payment too so this is one of the few times I'd care about putting it on the card for the rewards and having until the statement is due.”source ↗
“Ours wanted checks too. After paying the photographer, florist, rentals etc. by card it felt like going backwards in time”source ↗
“I know. I’m going through the same thing.”source ↗
Where this came up
People with this problem also raised
- 2How to finance big contracts when customers pay in 90 days
- 9How to collect remaining preorder balances without chasing customers
- 4Why do banks charge fees for outgoing ACH transfers?
- 2Why does the bank hold checks for so long?
- 2How to stop chasing contractor W-9 forms before payment
- 2Why pay upfront commitment fees for business loans that get declined?