Agency owners sometimes ask me: “Should my agency accept credit cards?” Then they grumble about 3–4% merchant fees.
- My answer: Yes, offer the option—selectively. But make ACH (bank transfer) your default for services, and only allow card payments when there’s a clear benefit to your agency.
- If your team is spending time managing card payments (or worse, you’re doing it yourself), there’s likely an operational or financial gap to fix.
Let’s walk through how to use credit card payments intentionally—especially if you’re scaling your agency and protecting margins is top of mind.
Why I Changed My Mind About Credit Cards
Back in 2018, I received 90–95% of my revenue via credit cards—including for coaching and consulting. It was fast, flexible, and reduced admin hassle.
Today? I flipped that model.
Now, 90–95% of service payments come in via ACH, whether that’s direct transfer, Intuit QuickBooks, or through a platform like Bill.com. I still accept credit cards—primarily for non-U.S. clients—but it’s now just 5–10% of my service revenue.
Meanwhile, most info product sales (like my templates or self-paced trainings) still come in via credit card—and that’s fine. It’s about using the right tool for the revenue stream.
Think Systems and Margins
If you’re running a growing agency and beginning to build a leadership team—you’ve already started handing off tasks like invoicing, collections, and payment processing.
So this article isn’t about which merchant processor to choose. It’s about how you, as the agency leader, set policy and expectations to support both operational excellence and profitability.
Why ACH Should Be Your Default
ACH (automated clearing house) transfers offer multiple advantages:
- Lower fees: ACH is often free or flat-fee; credit cards cost 2.5–4% per transaction.
- Secure and reliable: Reduces risk of failed payments or chargebacks.
- Ideal for retainers and large invoices: A 3% card fee on a $25,000 invoice is $750; ouch.
Want to protect your margins without making your ops team chase down receipts? Lead with ACH.
Set this as your standard client billing method for all service engagements. Make it clear in your MSA, onboarding materials, and kickoff discussions.
When Credit Cards Still Make Sense
There are still scenarios where credit cards can help:
- Your client’s procurement team is slow. Offering a corporate card option can accelerate a Paid Discovery deposit or project kickoff.
- You want to get paid today. A $5,000 invoice via card—with a 3% fee—is better than waiting 90 days for Net-30 to be ignored.
- You’re working with non-U.S. clients. Some international clients prefer card payments because they’re faster and avoid bank wire headaches.
- You’re accommodating a valued client. In that case, it’s fine to offer the option—with a clear 3% convenience fee.
This isn’t about being rigid. It’s about using the tool when it helps you, not just your client.
Surcharges: Yes, with Boundaries
In 2018, I advised agencies to “eat the fee.” I’ve changed my stance. Today, I recommend adding a flat 3% surcharge for credit card payments on service invoices—unless there’s a compelling reason not to.
Here’s why:
- You’re signaling that ACH is your standard.
- You’re recouping margin on optional convenience.
- You’re training clients to pay the way that works best for your business.
An agency processing $4M in revenue could easily spend $100K+ on card fees each year. That’s real profit erosion.
Train your team to frame it as a “convenience fee”—not a penalty—and always provide ACH as a no-fee option.
How to Operationalize This with Your Team
As your agency grows, you’ll need clear systems around billing and payments.
Here’s what I recommend:
1. Set a default payment method: ACH. Make ACH the norm for all client service engagements. This should be baked into your MSA and reinforced during client onboarding.
2. Define your exceptions. Credit cards are available:
- For international clients who can’t pay via ACH.
- When Procurement delays risk holding up the engagement.
- With a 3% fee for domestic service payments.
3. Empower your finance lead. Whether that’s a bookkeeper, ops manager, or controller, they should:
- Know when to allow card payments.
- Automatically apply the surcharge.
- Ensure auto-bill is in place for retainer clients.
4. Use auto-pay where possible. Set up auto-debit for ACH or cards. This reduces late payments and follow-up. Most modern accounting systems (e.g. QBO, Bill.com, Harvest) support this.
If You’re Still Sending Invoices Yourself…
If you’re a smaller or newer agency, you might still be manually managing invoicing and payment collection.
That’s OK. But take note: Every late payment is a symptom of a system issue.
Moving to ACH and auto-bill gets you out of collections mode. It also helps your clients; they don’t have to remember to pay you.
You can still offer credit cards (especially for pre-payments or first-time projects), but set expectations up front about the 3% fee.
FAQs for Agency Payments
Q: What if my clients push back on the 3% fee?
- Remind them ACH is always available at no fee. Most won’t object if you frame the card charge as a “convenience option.”
Q: Should we accept Amex, even with higher fees?
- Yes. Amex users often spend more—and perceive rewards value. If you’re going to accept cards at all, don’t nickel-and-dime by excluding Amex.
Q: What tools should we use?
- That depends on your accounting stack. I use Intuit Merchant Services via QBO. Others prefer Stripe, Bill.com, or platform-specific integrations. Just make sure it fits your workflow.
Recap: Strategic, Selective, Scalable
Here’s the bottom line:
- Default to ACH for all services clients
- Make credit cards available by exception—for instance, slow payers, international clients, one-off deposits
- Create a surcharge policy (e.g., 3% convenience fee on service payments via card)
- Systematize with auto-pay, delegated enforcement, and policy clarity
- Profitability starts with payment systems that support your growth
Your Move
Want to boost profit without cutting service quality?
- Start by tightening how your agency gets paid.
- Move service payments to ACH.
- Limit card usage to exceptions.
- Systematize it—so your team goes from chasing money to growing margins.
Because 3% here, 3% there… adds up. And as you grow, you can’t afford to leave that on the table.
Question: How do you approach accepting credit cards at your agency?
