On this page
The Contractor Payment Problem
Tradespeople in Canada — electricians, plumbers, HVAC technicians, roofers, general contractors — have payment needs that don't fit neatly into "retail" or "e-commerce" categories. The specific challenges:
- Large, irregular invoice amounts — A single job might be $800 or $45,000. Payment processing needs to handle the full range without punishing you on large invoices with percentage fees that eat your margin.
- Deposits + progress payments + final billing — You need a system that handles multi-stage payment collection, not just single transactions at point of sale.
- No fixed retail location — You need mobile solutions: card readers that work from a phone at the job site, or invoicing links clients can pay from home.
- Clients who expect multiple payment options — Some clients want to tap a card. Others want to e-transfer. Some older homeowners still write cheques. You need to handle all of these without friction.
- Cash flow sensitivity — Contractors often have 30–60 day gaps between job completion and full payment if using net-30 invoices. A payment system that settles quickly matters.
Restaurants and retailers have these problems solved for them by point-of-sale systems. Trades don't have an equivalent — most of the purpose-built trade management software (Jobber, ServiceTitan, Housecall Pro) has payment processing integrated, but at rates that often aren't the best. Understanding your standalone options gives you leverage when evaluating bundled software.
The E-Transfer Reality
Most Canadian contractors accept Interac e-Transfer for at least some jobs, and it makes sense — it's free to receive, instantly familiar to Canadian clients, and doesn't require any hardware. For repeat clients or small jobs under $2,000, it's perfectly adequate.
But e-Transfer has real limitations that bite contractors on larger jobs:
Interac e-Transfer daily send limits by bank (approximate, 2026)
A roofing job for $12,000 cannot be paid via standard personal e-Transfer in a single transaction. The client would need to send four transfers over multiple days — which almost never happens cleanly. You end up chasing partial payments, or the client asks for an alternative you're not set up for.
Also: e-Transfer has zero fraud protection for you as the receiver. If a client sends an e-Transfer and then contacts their bank claiming it was unauthorized or fraudulent, your bank generally cannot claw it back — but the chargeback risk is on the client's side. That said, there's no dispute mechanism if you're the one being defrauded (e.g., a client who stops payment on a cheque doesn't apply to e-Transfer). The real risk: if you send goods or start work based on an e-Transfer "confirmation" email that turns out to be spoofed. Use Autodeposit to eliminate the fake deposit confirmation scam.
Best Payment Solutions for Trades in Canada
Helcim Best Overall for Large Invoices
Helcim is the best overall choice for Canadian contractors billing $1,000–$50,000+ per job. The key reason: interchange-plus pricing means your effective rate scales with transaction type, not just value. On a $10,000 invoice paid by a standard Visa, you might pay 1.7–2.1% all-in — versus 2.65% flat on Square, saving you $55–95 on that single transaction.
✅ Why contractors love it
- No monthly fee — pay only when you process
- Built-in invoicing with online payment links
- Interchange-plus pricing is significantly cheaper at higher invoice amounts
- Accepts both cards and e-transfer through one platform
- Canadian company, Canadian support, CAD pricing
- Virtual terminal for phone payments
❌ Where it falls short
- Not as dead-simple as Square for first-time setup
- Card reader ($109 CAD) costs more than Square Reader
- Interchange-plus pricing requires understanding how it works
Best for: Contractors doing $5K+ jobs, anyone invoicing regularly, businesses wanting to consolidate card + e-transfer in one place. See our full Helcim Canada review.
Square Easiest Setup · Under $2K Jobs
Square is the easiest payment system to start with, period. The Square Reader ($69 CAD) plugs into your phone and you're accepting cards in minutes. Square's flat 2.65% on tap/chip/swipe means you always know your cost — no surprises. Square Invoice is also well-regarded for digital invoicing with payment links.
✅ Why contractors use it
- Easiest setup — phone number, card, and you're running
- Square Reader ($69 CAD) is affordable entry point
- Flat 2.65% is easy to budget for smaller jobs
- Square Invoice app is simple and client-friendly
- Free POS app included
❌ Where it falls short
- 2.65% flat becomes expensive on $10K+ invoices vs Helcim
- Account holds are common for new accounts or sudden high-value transactions
- US company; support can be frustrating
- Limited interchange-plus option for high-volume users
Best for: Handypeople, smaller tradespeople doing jobs under $2,000, anyone who values simplicity over optimization.
Stripe
Stripe is excellent if you have (or plan to build) a website, or if you want to send polished online invoices via a payment link. Not designed for in-person job-site collection — the app isn't as smooth as Square for on-site card collection. Better for contractors who invoice from the office.
Best for: Contractors with websites who prefer online invoicing. Less ideal for in-person collection at job sites.
PaySimply
PaySimply is a Canadian payment platform that processes Interac Debit for in-person and online transactions — useful for contractors whose residential clients prefer debit over credit. If many of your clients are on fixed incomes or prefer not to use credit cards, PaySimply gives them a familiar payment option at lower cost than credit card processing.
Best for: Contractors with residential client bases that prefer Interac Debit. Use alongside a card processor, not instead of one.
Deposit Collection Best Practices
For large jobs, most Canadian contractors take 25–50% upfront as a deposit before starting work. This is industry-standard and protects you if the job falls through or the client stops paying. But how you collect that deposit matters a lot.
🚫 The cheque deposit trap
One of the most common and costly mistakes: accepting a cheque deposit before starting work, then discovering it bounces after you've ordered materials or started the job. Banks provisionally credit cheques before they clear — you see the money, start work, then the cheque reverses 3–5 business days later. This happens more often than tradespeople realize, especially with newer clients.
✅ Use credit card for deposits
Taking a deposit by credit card via Helcim or Square gives you fraud protection. If the card is stolen or fraudulent, the card network's dispute process — while imperfect — is far better than pursuing a returned cheque. You also get the funds faster (next business day with most processors) than waiting for a cheque to clear.
Practical deposit workflow for contractors:
- Send an invoice via Helcim or Square with the deposit amount and a payment link
- Client pays by card (tap or link), deposit confirmed instantly
- Order materials once you have card confirmation — not on cheque "received"
- At job completion, send final invoice for remaining balance via the same platform
For repeat clients where you've established trust and have a relationship, e-transfer deposits are fine. For new clients, especially on jobs over $2,000, always use a card payment for the deposit.
HST and Payment Processing: What's Deductible
This is simpler than most contractors think. Payment processing fees (the merchant fees you pay to Helcim, Square, Stripe, or whoever) are a legitimate business expense. You deduct them like any other operating cost.
- Sole proprietors (T1 business income): Report gross revenue, then deduct processing fees as a business expense. The net is what you pay tax on. Keep your monthly statements from your processor as documentation.
- Incorporated contractors (T2): Same logic — processing fees are a deductible business expense. They're typically categorized under "bank charges and fees" or "payment processing" on your expense report.
- Do you charge HST on the processing fee? No — the merchant fee is a cost you pay, not one you charge clients. You collect and remit HST on your service revenue; the processing fee reduces your net profit, not your HST calculation.
- HST input tax credits: Processing fees have HST in them — you're entitled to claim ITCs on the HST portion if you're an HST registrant. Most processors show the HST breakdown on their invoices/statements.
All major processors (Helcim, Square, Stripe) generate monthly statements and year-end summaries that work fine for CRA documentation. If you're ever audited, these statements are your record. Don't skip downloading them.
Mobile Card Reader Comparison for Trades
If you're collecting payment at the job site, you need a reader that works reliably from a phone. Here are the three main options Canadian tradespeople use:
| Reader | Hardware Cost | Transaction Rate | Best For |
|---|---|---|---|
| Square Reader (tap/chip/swipe) | $69 CAD | 2.65% flat (tap/chip/swipe) | Simpler jobs under $2,000; fastest setup |
| Helcim Card Reader | $109 CAD | ~1.7–2.3% interchange-plus (all-in) | Larger jobs $2K+; best rates at higher volumes |
| Moneris Go | Leased (monthly fee) | Negotiated; typically 2.5–3.5%+ | Avoid unless you already have Moneris relationship; rates are rarely competitive |
| Square Terminal | $369 CAD | 2.65% flat | Overkill for most trades; better for semi-permanent locations |
💡 Do the math on your average job size
If your average job is $1,500: Square saves you money on the reader hardware, and at 2.65% you pay $39.75. Helcim reader costs $40 more, but at 2.0% effective you pay $30 on the same job — saving $9.75 per job. At 30 jobs/year, you've recouped the reader cost difference and saved ~$200 annually. At higher job values the math shifts more strongly toward Helcim.