Payment Processing for Solo Trades: Stripe for Plumbers, Roofers & Electricians
Moving from an employer to running your own plumbing, roofing, or electrical business means you need to get paid reliably. Collecting payment for materials and labor on a job site, sending professional invoices, and tracking your income are crucial. Unlike selling digital products globally, your payment needs are local and focused on simple, efficient transactions, not complex international tax compliance. This guide cuts through the noise to focus on what payment systems actually work for solo trades.
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The Quick Answer
For solo trades like plumbers, roofers, or electricians, Stripe offers basic payment processing, invoicing, and mobile card readers. It's a strong foundation if you need to accept cards and send professional invoices. Lemon Squeezy and Paddle are built for selling digital products online and are not suitable for collecting payments for hands-on services like roofing repairs, electrical installations, or plumbing jobs. Focus on tools designed for local service businesses and managing physical jobs.
Side-by-Side Breakdown
Stripe: Offers core payment processing (typically 2.9% + $0.30 per card transaction). You handle invoicing through their system or integrate with job management software like Jobber or Housecall Pro. You are the merchant of record, meaning you're responsible for any local sales tax on materials (e.g., 6% on a new water heater or roof shingles) and all income tax reporting. It's flexible and can integrate with many business tools. You'd use it for sending digital invoices, taking card payments via a mobile reader like a Stripe Reader M2, or processing online payments for deposits.
Lemon Squeezy: (Not for trades) This platform charges around 5% + $0.50, but it's specifically for selling digital products online (eBooks, software, courses). It handles global digital tax compliance (like VAT or GST), which a local plumber or roofer doesn't need for their service calls. It has built-in affiliate programs, not features for job tracking, scheduling, or invoicing for physical services.
Paddle: (Not for trades) Also charges around 5% + $0.50, and is exclusively for digital products and SaaS. It offers complex subscription management and global digital tax compliance, features totally unrelated to billing for installing a new electrical panel, repairing a burst pipe, or laying new tile floors. Used by larger software companies, not individual tradespeople.
When to Choose Stripe
You need a reliable way to accept credit card payments for your services, whether on-site or through emailed invoices. You want to offer clients flexible payment options beyond cash or check for a $3,000 roofing repair or a $500 plumbing emergency call. You're looking for a system that can integrate with other tools you might use for estimating, scheduling, or basic bookkeeping (e.g., linking to QuickBooks or Wave Apps). You are comfortable tracking any sales tax on materials yourself or with simple accounting software. For example, using Stripe to accept a 50% deposit via card for a new bathroom renovation project before materials are ordered.
When to Choose Lemon Squeezy
Simply put, you would not choose Lemon Squeezy as a solo plumber, roofer, or other tradesperson. This platform is specifically designed for selling digital products like software, online courses, or e-books globally, handling the specific tax rules (VAT, GST) for those types of sales. It does not provide tools for invoicing physical labor, accepting on-site payments for a flooring job, managing estimates for a drywall repair, or tracking inventory for plumbing supplies. Your business model does not align with what Lemon Squeezy offers for your specialty trade.
When to Choose Paddle
Similar to Lemon Squeezy, Paddle is entirely unsuited for a specialty trade business. It is built for large software companies to manage complex global subscriptions and B2B billing for digital products. You would not use Paddle to bill for installing a new HVAC system, repairing a burst pipe, or completing a custom tile job. Its features like multi-seat licensing or PO-based invoicing are for enterprise software, not for an independent electrician's service calls or a roofer's material and labor charges. It will not help you manage jobs or get paid for physical work.
The Verdict
For solo tradespeople like plumbers, roofers, or electricians, neither Lemon Squeezy nor Paddle is a viable option; they simply aren't designed for your type of business. Stripe, however, can be a strong foundation for accepting payments, sending professional invoices, and processing credit cards through a mobile reader. While powerful for payments, Stripe alone might require integrating with specific job management or accounting software (like Jobber, ServiceM8, or QuickBooks) to get a complete solution for estimating, scheduling, and comprehensive bookkeeping tailored for trades. Consider Stripe as your payment processor, but pair it with industry-specific software for full business management.
How to Get Started
Stripe: Create a Stripe account at stripe.com. Focus on setting up Stripe Payments for invoices and consider adding a mobile card reader (like the Stripe Reader M2) to accept payments on the job site for convenience. You'll need to link your business bank account to receive payouts. Skip any advanced features related to global digital product taxes, as they don't apply to your service business.
Lemon Squeezy: Do not sign up for Lemon Squeezy for your trade business. It does not offer the tools you need to invoice for services or accept payments for physical labor and materials. Your time is better spent elsewhere.
Paddle: Do not sign up for Paddle for your trade business. It is designed for software companies, not for the operational needs of a self-employed roofer, plumber, or flooring specialist. It will not help you run your day-to-day operations.
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FREQUENTLY ASKED QUESTIONS
What is a merchant of record?
A merchant of record is the legal entity that processes the transaction and is responsible for tax collection and remittance. When Lemon Squeezy or Paddle is your merchant of record, they handle VAT, GST, and sales tax on your behalf — you just receive payouts.
Is Lemon Squeezy's 5% fee worth it?
On $100,000 in revenue, the difference between Stripe's 2.9% and Lemon Squeezy's 5% is approximately $2,100. If avoiding global tax compliance saves you more than $2,100 in accountant fees and registration costs, yes it is worth it.
Can I switch from Stripe to Lemon Squeezy later?
Yes, but migrating active subscriptions requires coordination — subscribers may need to re-enter payment details. Plan your platform choice before you have a large recurring subscriber base.