Paying rent by debit or credit card online

[l8_apex]

As a landlord, I've moved away from any form of fully electronic payment. As the "new frontier", the rules/laws aren't all in place to safeguard customers. In 2017 $4,000 in payments to me were "lost". Lost here means that a middleman in the electronic payment transaction process was hacked and the money disappeared. Three years later in the court settlement I got 10% of what I was owed.

Just google erentpayment lawsuit for more details.

So now I ask folks to send me a check or use their billpay function with the bank, as that just generates a check in the mail to me. Paper trails are good, as are the protections around paper checks.

All of these payment processing companies promise you that your money is safe, but I no longer believe it. Every company I've ever asked: "are you carrying $10 million in insurance coverage in case your software gets hacked?" - the answer is "no, it won't get hacked".

 

[Kerfuffle]

It was mentioned that there is free ACH - see post #7

Ahh, I totally missed that, thanks! Problem solved then, right? I don't have any problem with auto-pay so long as I have full control to turn it off when I want. At the last place we lived, as soon as I made my last rent payment, I popped in and turned off auto-pay, just so they wouldn't have any permissions to deduct anything further in case we had any move-out damage disputes. Easy peasy. Worth it to not pay a fee.

 

[rodi]

Our tenants pay by check most months. But when we are travelling for multi-week when rent is due we ask them to venmo us.

But then again - our tenants have lived in our granny flat for 7 years and we have a very good relationship with them. And the rent check is usually dropped through our mail slot on their way to work since they go by our front door on the way to their car.

Not sure why the landlord is pushing this. Checks can be scanned and deposited from an office or home... so no delay of having to go to the bank.

 

[njhowie]

Not sure why the landlord is pushing this. Checks can be scanned and deposited from an office or home... so no delay of having to go to the bank.

Because for a large complex, they can outsource the entire function and the time/effort/cost is less than what it would be for them to process in house.

 

[jollystomper]

In our area, this has gone on for years in apartment complexes that are predominately rented by college students. When our youngest DS moved off campus in 2016 each of the lease requirements in his subsequent years required payment by ACH ("free"), debit (charge) , or credit (charge). I recall the credit card surcharge was 3%. We did as others suggested, opened up a separate joint account that we would transfer the rent payment amount quarterly and just schedule the payments (this DS was good about not being tempted to "borrow" the money for anything else).

One of the positive things about this was each of the roommates had a separate agreement, so anyone messing up their payment did not impact the others and the complexes knew where the payment problem was. Fortunately there was never an issue with the people he chose to room with.

 

[rk911]

Ohmigod... just spoke to the property manager. She claims that it's "only" 2% fee to use the credit card option and a $5 charge to use the debit card. The 2% "convenience fee" is in the dozens of dollars because our rent in sky high (VHCOL area). She further asserted that these fees are from the external "processing" company (as someone pointed out in the thread above) and suggested I pay by ACH from my bank a/c as that's "free". Sure! That means giving them access to my bank account.

I suppose the best thing would be to open a bank a/c for just this rent payment and then close the a/c once we move. What a PITA!

i wouldn't worry about ACH access to your bank. we've been paying our usual monthly bills for many, many years now..no worries.

 

[freedomatlast]

I don't understand how sending a paper check through the mail with your bank name, routing number and account number on it to some unknown entity seems safer than ACH transfer. I believe ACH transfer would be safer.

 

[harllee]

I don't understand how sending a paper check through the mail with your bank name, routing number and account number on it to some unknown entity seems safer than ACH transfer. I believe ACH transfer would be safer.

Paying by credit card would be safe too and maybe you could get a cash back card to offset fees.

 

[Sunset]

OP could get a 2% or more reward credit card and even make money on the payment cost.

My tenant pays me via direct bank payment like ACH, it goes straight into my account.

I like it as it's easier than collecting checks.
Tenant like it because if he ever is missing some money, he can call and let me know and then pay the next week, no bounced check which is a pain for both of us.

 

[Safire]

Are credit card transactions truly safe?

We've lived in the same unit for EIGHT years! We cannot afford to buy a home where we live, so renting and plodding along.

I've been victim of credit card and banking scams before (slow learner, I guess). That makes me wary of giving them any personal financial or banking information. What's to stop the landlord's leasing office employees from charging my credit card after I've moved (which we hope to, soon) to pay for alleged damages? Has happened to a neighbor before, which makes me even more paranoid!

Help!

 

[MichaelB]

Are credit card transactions truly safe?

We've lived in the same unit for EIGHT years! We cannot afford to buy a home where we live, so renting and plodding along.

I've been victim of credit card and banking scams before (slow learner, I guess). That makes me wary of giving them any personal financial or banking information. What's to stop the landlord's leasing office employees from charging my credit card after I've moved (which we hope to, soon) to pay for alleged damages? Has happened to a neighbor before, which makes me even more paranoid!

Help!

Safire, there are many good suggestions in this thread and I think you’re both overthinking this and blowing the risk factor up and out of proportion.

Credit cards enjoy strong consumer protection regulations, more than any other type of financial transactions.

Any option you choose to pay the rent, aside from paying cash, entails some risk but enjoys strict consumer protections. If you regularly monitor the all the transactions in your financial accounts you can effectively reduce that risk to zero, or very close to it.

 

[rk911]

I don't understand how sending a paper check through the mail with your bank name, routing number and account number on it to some unknown entity seems safer than ACH transfer. I believe ACH transfer would be safer.

+1.

some folks just don't trust banks. about a year before i retired we decided to drop all paper paychecks and switch to 100% direct deposit. most employees had made the switch prior to the decision to drop the paper checks but there were still a relatively small group that were still getting paper. we gave plenty of notice and all made the switch...except one. he said he did not trust banks and did not have a bank account. he said he cashed his check at the local currency exchange and when it came time to pay bills he would drive to those offices and either pay cash or get postal or currency exchange money orders. seemed unnecessarily complicated and time consumimg to me but whatever. we denied his request for an exemption. he left us shortly after.

 

[calmloki]

We get bounced checks on occasion and probably once/year the post office loses an envelope from a tenant containing a rent check or money order. major pain in the neck when it happens. Not talking about (furtive side-to-side eye movement), "yeah, I know
I mailed that last Friday, so the postman must have lost it" type tenants, but solid tenants I'm sure mailed the rent. Hate to charge them a late charge or ask them to come up with the same rent amount twice in a month or deal with stop rent charges or tracking a Walmart money order. Also hate to take a 2-3% haircut on rent.

I'd take any of the good suggestions offered here and move forward.

 

[braumeister]

there were still a relatively small group that were still getting paper.

For some of those old timers it had nothing to do with not trusting banks. They simply didn't want their wives to know how much they made. That let them just give the spouse an "allowance' every payday to run the household and they were free to blow the rest on whatever.

 

[cathy63]

... What's to stop the landlord's leasing office employees from charging my credit card after I've moved (which we hope to, soon) to pay for alleged damages? ...

What's to stop the landlord's leasing office employees from taking money out of your current checking account after you've moved to pay for alleged damages?

If you're not worried about that, tell us why not -- after all, they can do it just as easily as charging your credit card.

 

[Sunset]

Are credit card transactions truly safe?

We've lived in the same unit for EIGHT years! We cannot afford to buy a home where we live, so renting and plodding along.

I've been victim of credit card and banking scams before (slow learner, I guess). That makes me wary of giving them any personal financial or banking information. What's to stop the landlord's leasing office employees from charging my credit card after I've moved (which we hope to, soon) to pay for alleged damages? Has happened to a neighbor before, which makes me even more paranoid!

Help!

I think you are being too afraid.. and actually endangering your bank account.

Credit cards are the safest way to spend money !

Checks are the most UNSAFE. I tried this once to see how easy it was and it was scary easy. I washed my own check, changed the amount to a higher amount adding thousands to the check. Read about check washing and be prepared to be worried.

If ANY charge shows up on a credit card I didn't do, I just tell the credit card company and they do NOT charge me, and they give me a new credit card.

It has happened to me about 4 times. It's actually rare as I have ~7 credit cards , one I had for 20 years never got a fake charge on it.

You should have at least 2 credit cards at all times as when a fake charge shows on one, they will cancel the card and issue a new one, but it can take a week to show up. (ask to expedite it).

Raise you credit limit, as a low limit gives you a lower credit score since you use a large percentage of the allowable limit.

I get peeved when my credit card issuer gives me a limit below $10K

 

[harllee]

If I were the landlord who was asking for a reasonable form of payment (like a credit card or ACH) and I had a tenant who was giving me a hard time about doing it, I would terminate that tenant's lease as soon as it was legal to do so. Where I live there is a shortage of apartments so the landlords have the upper hand.

 

[njhowie]

Are credit card transactions truly safe?

We've lived in the same unit for EIGHT years! We cannot afford to buy a home where we live, so renting and plodding along.

I've been victim of credit card and banking scams before (slow learner, I guess). That makes me wary of giving them any personal financial or banking information. What's to stop the landlord's leasing office employees from charging my credit card after I've moved (which we hope to, soon) to pay for alleged damages? Has happened to a neighbor before, which makes me even more paranoid!

Help!

Not sure what kind of help you're looking for at this point from the folks here. You should be asking for help from your landlord.

As far as stopping landlord from charging your credit card after you moved - once final month rent has been charged, you log on to the website and simply remove the credit card information.

Paying for alleged damages? Did you not pay a security deposit when you moved in?

 

[Sue J]

Ohmigod... just spoke to the property manager. She claims that it's "only" 2% fee to use the credit card option and a $5 charge to use the debit card. The 2% "convenience fee" is in the dozens of dollars because our rent in sky high (VHCOL area). She further asserted that these fees are from the external "processing" company (as someone pointed out in the thread above) and suggested I pay by ACH from my bank a/c as that's "free". Sure! That means giving them access to my bank account.

I suppose the best thing would be to open a bank a/c for just this rent payment and then close the a/c once we move. What a PITA!

I also avoid fees if I can. I use auto payment ACH for just about anything I can because places like my utility bill charge a fee for a credit card transaction. I'm very comfortable doing this but I also check my bank accounts and my credit cards a couple times a week.

How have you been paying the rent up until now? In the old days, like when I was in my first apartment, I wrote a check and put it in the mail about 10 days before then end of the month. Snail mail. Now we have the internet.

 

[Safire]

I don't understand how sending a paper check through the mail with your bank name, routing number and account number on it to some unknown entity seems safer than ACH transfer. I believe ACH transfer would be safer.

What's to stop the landlord's leasing office employees from taking money out of your current checking account after you've moved to pay for alleged damages?

The check from my bank a/c using bill pay does *not* show my account number or routing number. It's like a cashier's check, so I have no worries about my LL's employees getting to know my current banking information.

If I were the landlord who was asking for a reasonable form of payment (like a credit card or ACH) and I had a tenant who was giving me a hard time about doing it, I would terminate that tenant's lease as soon as it was legal to do so. Where I live there is a shortage of apartments so the landlords have the upper hand.

Well, thank God I don't rent from you then. "Reasonable form of payment" would not be a credit card with a 2% "convenience fee" on it, especially when that fee runs to several dozen dollars on top of the already large rent we pay and have paid diligently for 8 long years.

Anyway, I opened a new bank a/c today and will be setting up ACH for rent from it.

 

[F.I.R.E User]

My apt accepts CC but with a 3% fee and I get 2% CB so not worth it.

 

[Winemaker]

Out of my 6 tenants, 5 pay cash by their choice not mine. And they've been doing it for years. I text them a "receipt" of the amount paid, any fees, and the month. It is the only way I can prove to the IRS that I'm reporting my income.

A suggestion that I have used were to give Tenant #1 12cents and 12 deposit slips, tenant #2 24 cents and 12 deposit slips, etc. I can look online to see the rent deposited while I am away, and have it swept into my checking account. Each tenant has a savings account with my name on it.

I don't think I would like getting my rents via a credit card debit.

 

[Safire]

My apt accepts CC but with a 3% fee and I get 2% CB so not worth it.

Yes... It is as if I have to pay extra just to pay rent by credit card or debit card as requested by the landlord.

As someone else pointed out earlier in the thread, that right there is an increase in rent in the middle of the lease period, regardless of who is charging that additional amount. Who's to say the LL doesn't split the "convenience fee" with the "3rd party"? Now multiply that by the number of tenants in this complex and it's payday for them!

 

[ERD50]

Yes... It is as if I have to pay extra just to pay rent by credit card or debit card as requested by the landlord.

As someone else pointed out earlier in the thread, that right there is an increase in rent in the middle of the lease period, regardless of who is charging that additional amount. Who's to say the LL doesn't split the "convenience fee" with the "3rd party"? Now multiply that by the number of tenants in this complex and it's payday for them!

Do you have some software on your browser that filters out the letters "ACH"?

You keep ignoring the option of paying by ACH w/o any fee, so there is no increase being forced on you. You don't "have to". ACH appears to be as safe (probably safer) than using a check (that has the routing/account # on it).

Why keep referencing these other issues, when you have a path to take that's been pointed out many times? You're starting to sound like someone who just likes to complain.

-ERD50

 

[KarenF]

Ohmigod... just spoke to the property manager. She claims that it's "only" 2% fee to use the credit card option and a $5 charge to use the debit card. The 2% "convenience fee" is in the dozens of dollars because our rent in sky high (VHCOL area). She further asserted that these fees are from the external "processing" company (as someone pointed out in the thread above) and suggested I pay by ACH from my bank a/c as that's "free". Sure! That means giving them access to my bank account.

I suppose the best thing would be to open a bank a/c for just this rent payment and then close the a/c once we move. What a PITA!

I have a smallish checking account I only use for bills like this. It is not a bad idea to have a "main" checking account and a smaller one to use for ACH payments. I use Navy Federal which is everywhere, so I don't have to close the account when I move.