Automatic Rent Payments
by Electronic Check or Credit Card

This is a commonly asked question and there are several answers. First some landlords are able to set up direct payment through their bank. Not all banks provide this service, but some do. For this method, payments are set up by signing an authorization form. Most often, there will not be an online option for paying rent unless the landlord’s bank provides one.

Second, your landlord or property manager can set up an account with a payment processor to provide this payment service. Some use PayPal and others use a service like ours. Most good programs provide authorization forms and have an online payment option which gives you added convenience. Look for the greatest flexibility in a program that allows single rent payments as well as recurring payments. Then you can schedule all your rent payments in a single authorization.

The last thing to be aware of is possible fees involved including convenience fees and non sufficient funds (NSF) fees. If you pay by electronic check (e-check) and you don’t have enough funds in your account on the date of your scheduled payment, your bank will charge you an overdraft fee.  The Phoenix-Hecht Blue Book of Bank Prices™ reports the average price for a bank overdraft in 2008-2009 is $39.93. In addition, the originating financial institution trying to collect rent payment for your landlord will also charge you an NSF fee according to the amount that is stated in your payment authorization form or terms and conditions.

Convenience fees are variable and determined by your landlord. Direct payment is not free in most cases. Credit card companies charge anywhere from 2.19% or higher, plus another 0.3% for rewards cards. An e-check payment is much less and normally starts around 35¢. We have seen fees as high as $2.20 per e-check transaction. Your landlord has to decide whether they want to absorb the cost of direct payment or pass some or all of the fees on to you for offering this convenience.

Now that you understand the basics of direct payment, we invite you to talk to your landlord about using our direct payment program for paying your rent. We provide all the services mentioned above and offer your landlord some of the lowest costs in the direct payment industry.