How Are Payment Processing Fees & Deposit Structured?

When you use Contractor Accelerator’s payment processing, transaction fees are applied by our payment partners, Propelr and Cardpointe.

Standard Processing Fees

• Credit Cards: 2.8% + $0.10 per transaction
• ACH: $2.00 per transaction

How those fees appear in your bank deposits depends on the funding option you selected during setup. 

We can update this setting for you if your preferred option. 

How Processing Fees Are Calculated (Important for Reconciliation)

Important note about fee calculations:
When a customer covers a convenience fee, the processing fee is calculated on the total amount paid, not just the original invoice amount.

Example:

• Invoice amount: $1,000
• Customer convenience fee: 3%
• Total paid by customer: $1,030
• Merchant processing fee: 2.8% of $1,030, not 2.8% of $1,000

This means the processing fee will be slightly higher than if it were calculated only on the invoice total.

Because fees are calculated on the full customer payment, the way you choose to receive deposits in Cardpointe can impact how easy (or difficult) it is to identify the exact fee amount per transaction.

• If fees are netted from deposits, the deposit amount will not directly match the invoice total or the customer payment.
• If fees are separated, it is often easier to clearly see total processing fees as a standalone expense.

For businesses that want precise fee tracking or easier reconciliation, selecting the right funding option can make a noticeable difference.

Funding & Fee Options Explained

1. Separate Fees and Deposits

What this means:

• Your full customer payment amount, including any convenience fee they paid, is deposited into your bank account. 
• Processing fees are withdrawn separately (as a single grouped or batched withdrawal).

Why businesses choose this:

• Deposits match invoice totals exactly.
• Fees are easy to see as a clear, standalone expense.
• Makes reconciliation simple if you track processing fees as an operating expense.

Accounting impact:

• Cleaner revenue reporting.
• Easier to reconcile invoices to deposits.
• Ideal if you want transparent fee tracking or your bookkeeper prefers expenses separated.

Best for:
Businesses that want clean books, easy invoice matching, and clear visibility into processing costs.

2. Net Fees and Deposits

What this means:

• The processing fees are deducted before the deposit hits your bank.
• You receive a net deposit (customer full payment minus your fees).

Why businesses choose this:

• Fewer transactions are hitting the bank account.
• Cash-in reflects what you actually receive.
• Simple if you don’t want separate fee withdrawals.

Accounting impact:

• Deposits will not match invoice totals exactly.
• Requires more care when reconciling revenue vs. deposits. 
• Fees must be backed out if you want full gross revenue reporting.

Best for:
Teams or owners who want simplicity and aren’t focused on detailed fee tracking.

3. Individual Batches

What this means:

• Each batch of transactions is deposited separately.
• Fees are applied per batch rather than grouped.

Why businesses choose this:

• Easier to match deposits to specific days or transaction groups.
• Helpful if you process payments across multiple locations or teams.
• More granular reporting.

Accounting impact:

• More deposits appear in your bank feed.
• Clear linkage between batches and deposits.
• Can be helpful for audits or detailed reconciliation, but adds volume.

Best for:
Businesses that want detailed, day-by-day or batch-level tracking.

Which Option Is “Best”?

There’s no one-size-fits-all answer. It depends on how you manage your books:

• Want the cleanest accounting? → Separate fees and deposits
• Want fewer bank transactions? → Net fees and deposits
• Want detailed batch-level tracking? → Individual batches

If you work with a bookkeeper or CPA, it’s a good idea to ask which option aligns best with your accounting workflow. If closely tracking exact processing fees is important to your business, many merchants find that Separate fees and deposits provide the clearest visibility.

Important Notes

• These settings are controlled inside Cardpointe, not Contractor Accelerator.
• Changing this option does not affect how payments are recorded in Contractor Accelerator, only how money and fees appear in your bank account.
• We can update your funding preference at any time, just ask.