Why General Contractors Need Specialized Payment Processing
General contractors face unique payment processing challenges that differ fundamentally from retail businesses. Projects span months or years, payments arrive in large installments tied to construction milestones, and change orders create ongoing modifications to original agreements. Standard retail processing setups fail to accommodate the complexity of construction billing patterns.
High-ticket transactions characterize contractor payments. Deposits of ten thousand dollars or more, progress payments of fifty thousand, and final payments exceeding a hundred thousand are normal. These transaction sizes trigger fraud alerts and manual reviews with processors unfamiliar with construction. Without proper merchant category coding and underwriting, legitimate payments face holds and delays.
Deposit collection creates specific challenges. Collecting deposits before work begins is standard practice, but processors may view advance payments as higher risk for chargebacks. Understanding how to structure deposit collection, documentation requirements, and contract provisions that protect both parties requires processor experience with construction operations.
Progress billing over extended timeframes differs from one-time retail transactions. Collecting payments as work progresses, tied to inspection approvals or milestone completion, requires processing relationships that accommodate irregular payment schedules and varying transaction amounts throughout project duration.
How Goodlane Group Supports General Contractors
We connect general contractors with processors who understand construction payment patterns and won't flag legitimate high-ticket transactions as suspicious. Our processor relationships include providers experienced with contractor billing who recognize that large deposits and progress payments are normal business operations, not fraud indicators.
Statement analysis for contractors examines whether your current processing rates are appropriate for your transaction profile. Contractors often overpay because they're classified incorrectly or using consumer-oriented processing that penalizes large transactions. We identify opportunities to reduce costs while maintaining reliable processing.
Our support extends beyond initial setup to ongoing relationship management. When projects generate unusually large payments or new contract structures create unfamiliar transaction patterns, we help navigate processor relationships to prevent holds and ensure smooth payment collection.