Payment Processing Built for Construction Businesses
Progress payments, high-ticket draw processing, material deposits, and subcontractor payouts — built for general contractors, specialty trades, and construction firms that handle complex, milestone-based billing.
Construction payment processing is fundamentally different from retail or service-based businesses. Projects span months or years, individual transactions can reach six or seven figures, and payment workflows involve progress billing, draw schedules, retainage, material deposits, change orders, and subcontractor disbursements. PaySec provides dedicated merchant accounts purpose-built for construction — with support for AIA-style billing, milestone-based payment collection, lien waiver tracking, and ACH processing for large draws. Whether you're a general contractor managing multi-trade projects, a specialty subcontractor billing against certified pay applications, or a materials supplier collecting deposits on large orders, PaySec delivers low-cost processing on high-ticket transactions and the workflow tools construction billing demands. Network Offset Pricing ensures you never overpay on interchange, especially critical when individual transactions routinely exceed $10,000.
Common Construction Payment Challenges
A Closer Look at Construction Payment Pain Points
Processing Fees That Punish High-Ticket Transactions
Construction transactions are among the largest in any industry. A single progress payment can be $50,000-$500,000 or more. When a flat-rate processor charges 2.9% + 30¢, a $100,000 draw costs $2,930 in processing fees — money that comes directly out of already tight project margins. Over the life of a $5 million commercial project, processing fees alone can exceed $100,000. PaySec's Network Offset Pricing passes through wholesale interchange rates, and our ACH processing handles large draws at a flat per-transaction fee regardless of amount — turning a $2,930 cost into a few dollars.
Milestone Billing That Generic Processors Can't Handle
Construction billing doesn't follow simple invoice-and-pay cycles. Projects use AIA G702/G703 pay applications, schedule of values, percentage-of-completion billing, and retainage holdbacks. A general contractor might bill for 15 different line items at varying completion percentages in a single pay application. Generic payment processors have no concept of this workflow, forcing contractors to manage billing in one system and payment collection in another with no connection between them. PaySec links payment collection to project milestones, so when a pay application is approved, the corresponding payment request goes out automatically.
Cash Flow Gaps That Stall Projects
Construction is notorious for slow payment cycles. The average Days Sales Outstanding (DSO) in commercial construction is 60-90 days, and some GC-to-sub payment chains stretch to 120 days. Meanwhile, payroll, material suppliers, and equipment rentals need to be paid on time. These cash flow gaps force contractors to rely on lines of credit, delaying project starts or reducing bidding capacity. PaySec's faster settlement — next-business-day funding on card payments and 1-2 day ACH — compresses the gap between billing and receipt so cash keeps moving.
Subcontractor Payment Complexity
A general contractor on a mid-size commercial project might manage 20-40 subcontractors, each with their own pay schedule, retainage terms, and lien waiver requirements. Disbursing payments after each draw involves matching approved amounts against contracts, confirming lien waiver receipt, withholding retainage, and issuing payments across multiple methods (check, ACH, card). Most of this happens in spreadsheets. PaySec's disbursement tools streamline sub payments — batch ACH payouts, retainage tracking per subcontractor, and conditional release tied to lien waiver submission.
Retainage and Lien Waiver Tracking Gaps
Retainage (typically 5-10% of each progress payment) must be tracked at the line-item level across every subcontractor for the duration of the project, then released upon substantial completion. Simultaneously, lien waivers must be collected from every sub before payments flow down the chain. One missed waiver can expose an owner or GC to a mechanics lien claim. PaySec's platform tracks retainage holdbacks per trade and per pay application, and flags missing lien waivers before disbursements are released.
See How Construction Merchants Save
Get a free, no-obligation rate analysis tailored to construction businesses. We'll show you exactly where you're overpaying.
Construction Payment Solutions Now Available
PaySec is expanding our construction-specific payment tools — progress billing, retainage tracking, and sub disbursements. Apply for a dedicated construction payment specialist who understands milestone-based billing.
Busy Season Is Here — Lock In Your Rate Before Peak
General contractors and subs switching before summer break get priority onboarding and draw payment setup configured for your active projects.
Complimentary Draw Payment Cost Analysis
Construction firms switching this quarter get a complimentary draw payment cost analysis — we'll model your actual project billing volume and show you exactly how much ACH processing saves versus your current card processor.
How PaySec Solves Construction Payment Problems
Progress & Draw Payments
Collect progress payments tied to project milestones and draw schedules. Support for AIA G702/G703 pay applications, percentage-of-completion billing, and schedule of values — all linked to payment collection.
Retainage & Lien Waiver Management
Automatically calculate and withhold retainage at configurable rates (5%, 10%, or custom). Track lien waiver status per subcontractor and block disbursements until conditional or unconditional waivers are received.
ACH for High-Ticket Draws
Process $50,000-$500,000+ draw payments via ACH at a flat per-transaction fee. Eliminate the percentage-based card fees that make accepting payments on six-figure invoices cost-prohibitive.
Next-Day Funding
Get paid faster with next-business-day settlement on card transactions and 1-2 day ACH. Compress the gap between billing and receipt to keep payroll current and materials on schedule.
Change Order & Billing Automation
Issue change order payment requests instantly. When a change order is approved, the billing adjustment and payment collection happen in one workflow — no manual recalculation or separate invoicing.
Subcontractor Disbursements
Batch-disburse subcontractor payments via ACH after each draw. Per-sub retainage tracking, conditional release workflows, and payment confirmation notifications keep every trade paid accurately and on time.
Real-World Use Cases
General Contractor — Commercial Build-Out
Scenario: A general contractor managing a $12 million office build-out was processing monthly progress payments of $400,000-$800,000 through a flat-rate processor. Processing fees averaged $18,000 per month, and the team spent 6+ hours per draw cycle manually reconciling payments to AIA pay applications and tracking retainage across 28 subcontractors.
PaySec Solution: PaySec moved draw payments to ACH at a flat per-transaction fee, reducing monthly processing costs from $18,000 to under $200. Milestone-linked payment requests automated the billing-to-collection workflow. Retainage tracking per sub eliminated spreadsheet errors, and batch disbursements cut sub payment processing time from 6 hours to 45 minutes per draw cycle.
Specialty Subcontractor — Electrical
Scenario: A commercial electrical subcontractor billing $150,000-$300,000 per month across 8 active projects was waiting 75-90 days for payment from GCs. The cash flow gap forced them to maintain a $500,000 line of credit and turn down new bids during peak season.
PaySec Solution: PaySec enabled the sub to accept card payments on smaller invoices with interchange-plus pricing (reducing fees by 38%) and offered next-day funding. For GCs willing to pay by card, the sub received funds the next business day instead of waiting 75 days. The faster cash cycle freed up $300,000 in working capital and eliminated the need for their credit line during peak months.
Materials Supplier — Lumber & Building Products
Scenario: A regional lumber supplier processing 200+ contractor orders per week needed to collect deposits on large material orders ($5,000-$50,000), manage net-30 terms for established accounts, and handle job-site delivery COD payments. Their legacy terminal couldn't support mobile payments, and deposit tracking was entirely manual.
PaySec Solution: PaySec deployed mobile card readers for delivery drivers to collect COD payments on site, set up online deposit collection linked to purchase orders, and implemented net-30 billing with automated reminders. Deposit collection moved from phone-and-fax to instant online payment links. Late payments on net-30 accounts dropped 42% thanks to automated past-due notifications.
Integrations & Compatibility
Project Management
- Procore
- Buildertrend
- CoConstruct
- PlanGrid (Autodesk Build)
- Fieldwire
Accounting
- QuickBooks
- Sage 100 Contractor
- Foundation Software
- Viewpoint Vista
- Xero
Estimating & Takeoff
- STACK
- PlanSwift
- Bluebeam Revu
- ProEst
- RSMeans
Payment Hardware
- Countertop EMV/NFC terminals
- Mobile card readers for job sites
- Wireless rugged terminals
- Fleet vehicle-mounted readers
Projected ROI for Construction Merchants
Switching high-ticket draw payments from percentage-based card processing to flat-fee ACH eliminates most processing costs on six-figure transactions.
Per draw cycle — automated milestone billing, retainage calculation, and batch sub disbursements replace manual spreadsheet workflows.
Next-day card settlement and 1-2 day ACH compress the typical 60-90 day construction DSO, improving cash flow and reducing credit line dependence.
Batch ACH disbursements with automated retainage tracking and lien waiver verification reduce missed or delayed subcontractor payments.
Ready to Upgrade Your Construction Payment Processing?
Join construction businesses nationwide who switched to PaySec for lower fees, faster approvals, and dedicated industry support.
“We run $8-12 million in projects annually and our old processor was costing us over $140,000 a year in fees on draw payments alone. PaySec's ACH processing cut that to almost nothing, and the retainage tracking saves our PM team hours every draw cycle. It's built for how construction actually bills.”
Mike T.
Owner, Commercial General Contractor
Individual results may vary. Savings depend on merchant volume, card mix, and transaction size.
Construction Payment Processing FAQ
Related Industries
Explore payment solutions for similar businesses.
Derek N.
Construction & Trades Specialist
Ready to Save on Payment Processing?
Join merchants who switched to PaySec for lower fees, faster approvals, and dedicated support.