accepting rent payments by CreditCard - Posted by Groner

Posted by tsweat on December 04, 2002 at 12:07:16:

However, you can give a “cash discount” for payments tendered in Cash or similar instrument.

accepting rent payments by CreditCard - Posted by Groner

Posted by Groner on July 31, 2002 at 20:23:00:

does anyone here have any experience charging a tenants rent to credit card? i know I’d have to pay a transaction fee, but then again…

Re: accepting rent payments by CreditCard - Posted by Marcus

Posted by Marcus on September 17, 2002 at 23:48:06:

Roger is right. Credit card fees and rates are a cost of doing business. The merchant is the one who has to pay these fees, not the consumer. We accept credit cards in our building ( http://www.prospectcomplex.com ) even for the apartments. It’s just a convenience for the tenant, and we are happy to keep them happy. By the way, some tenants we don’t see but once a year, because we charge them the rent automatically each month on their credit card (with permission on the rental agreement, of course). AND YES, you guessed it. we are happy to pay the 2% or so credit card fee in order to KNOW that we will get the money from the tenant every single month this way.

Re: accepting rent payments by CreditCard - Posted by Mark Fabich

Posted by Mark Fabich on August 08, 2002 at 21:11:29:

Try rentcharge.com or paymentservicenetwork.com

Re: accepting rent payments by CreditCard - Posted by Jacque - WA

Posted by Jacque - WA on August 02, 2002 at 17:18:42:

Hi Groner,

I have some buyers who make payments via credit cards using Paypal.

It?s a fast, it?s simple and it can be done in the convenience of your buyers own home. Payments can be made with Visa, Mastercard, American Express or Discover.

The money is instantly available in your account and can be transfer into your own checking account, savings account or where you want it to go. You can also pay your own bills, or purchase items on the internet with your paypal account.

There are several companies out there ? Paypal and Billpoint are the two most popular?.I prefer Paypal over Billpoint because it?s faster and easier. With Billpoint you have to wait a day or two before the money is available.

The buyer?s that I have love it?.It?s even possible to set up monthly invoices to go to your buyer?s email accounts as a reminder on certain days of every month.

Their website address is: www.paypal.com

Good Luck,

Jacque - WA

Re: accepting rent payments by CreditCard - Posted by Paul Ness, MAI

Posted by Paul Ness, MAI on August 02, 2002 at 14:15:53:

Why not tell them to go to a bank and get a cash advance on their card and pay you in cash.

Re: accepting rent payments by CreditCard - Posted by ray@lcorn

Posted by ray@lcorn on August 02, 2002 at 07:34:32:

Groner,

Before you go down this road you need to talk to your local bank and find out what it will take for you to get set up to accept credit cards. You’ll find that the discount rate is tied to volume, so unless you’ve got a number of units and expect to regularly use the account the rate will be relatively expensive.

A better way is to set up an automatic draft from the tenant’s checking account. Many banks offer overdraft protection on those accounts tied to a credit card. That way, if the cash isn’t in the account when the time for the draft arrives, the bank advances funds from the tenant’s credit card to the account to pay your draft. The transaction fees are then borne by the tenant.

ray

Re: accepting rent payments by CreditCard - Posted by Nate(DC)

Posted by Nate(DC) on August 01, 2002 at 19:38:24:

If the tenant wants to pay by credit card (most likely to get frequent flyer miles or some such business) why not make THEM pay for the convenience of doing so?

If rent is $1000 and there is a 2% fee, the rent is $1020 if paid by credit card??

NT

Re: accepting rent payments by CreditCard - Posted by tsweat

Posted by tsweat on December 04, 2002 at 12:39:36:

If you had set this up from the beginning then you could have charged a higher rent with a ‘cash discount’ for payments tendered via a cash instrument. This is the simple way around the MC/Visa regulations which prohibit you from charging a surcharge for the use of a credit card.
However, now you are stuck at the rent amount on the lease so you have to suck it up… At least you can keep it in mind for future use.

What about the 3% fee - Posted by Dennis

Posted by Dennis on November 05, 2002 at 14:56:25:

Good idea, except there is a 3% transaction fee that you have to pay each time. In my opinion, 3% is too much to give away for the tenant’s convenience.

Great idea! - Posted by ray@lcorn

Posted by ray@lcorn on August 04, 2002 at 07:59:04:

Jacque,

Thank you for a great tip. I did not realize such a service was available. That beats the old ways of setting up credit card deposit accounts hands down. Just goes to show I can get out of touch in a hurry!

ray

Re: accepting rent payments by CreditCard - Posted by Roger Anderson

Posted by Roger Anderson on September 02, 2002 at 15:24:41:

You cannot charge a higher price for credit than cash per MasterCard/Visa agreements. If a merchant pulls this on you, ask them to itemize it on your invoice, and MasterCard/Visa will take it right off if you request.

She forgot to mention the 3% fee - Posted by Dennis

Posted by Dennis on November 05, 2002 at 14:57:43:

It is a good idea if you don’t mind giving away 3% of your profit on a transaction fee.