Challenges of High-Ticket Construction Payments
Construction contractors routinely process transactions that would trigger fraud alerts in other industries. Ten thousand dollar deposits, fifty thousand dollar progress payments, and six-figure final payments are normal for many contractors but abnormal for most merchant accounts. Without proper account setup, these legitimate transactions face holds, reviews, and delays.
Transaction velocity patterns differ from retail expectations. A contractor might process nothing for weeks, then collect three large payments in one day as projects reach billing milestones. Processors using retail fraud detection models flag these patterns as suspicious activity.
Card limits on client accounts can complicate large payment collection. Business credit cards, personal cards with high limits, and split transactions across multiple cards all require different handling. Understanding legitimate ways to collect large payments within card network rules prevents violations that threaten account stability.
Solutions for High-Ticket Processing
Account setup and underwriting establish expectations for transaction sizes. Contractors should be underwritten with realistic volume and ticket size projections that reflect actual business operations. Conservative initial limits that don't match reality create ongoing friction.
Transaction documentation for large payments provides evidence that justifies processing without holds. Invoices, contracts, and client authorization forms submitted with or immediately after large transactions preempt fraud department inquiries.
Processor communication about expected large transactions prevents surprises. When you know a major payment is coming, informing your processor in advance eliminates delays. Building this communication into your billing process protects cash flow.
Alternative payment acceptance for very large amounts may be appropriate. ACH transfers, wire transfers, or check acceptance for six-figure payments may cost less and avoid card network complications entirely. Understanding when card acceptance makes sense versus when alternatives are better optimizes your overall payment collection.
How Goodlane Group Optimizes High-Ticket Processing
We ensure contractor accounts are underwritten appropriately for actual transaction sizes. This prevents the holds and reviews that occur when processors are surprised by large transactions that should have been expected.
Our processor relationships include providers with construction experience who won't apply retail fraud models to contractor payments. These processors understand that large, irregular transactions are normal for the industry.
We advise on payment collection strategies that balance processing costs against reliability and convenience. For some contractors, accepting cards for all payments makes sense. For others, a mixed approach using cards for smaller transactions and alternative methods for large payments optimizes overall costs.