ANyone Accept Credit Cards For Rent Payment?
I am looking to do this and am looking for:
1) the lowest rate to accept the payment
2) an agreement that they cannot chargeback the rent payment
I had a friend with a merchant account and was accepting payments through his business but he has since sold it. His merchant rate was only .50 percent on Visa/MC so it was rather cheap to do and I was able to charge the tenants and pay my friend a flat fee of $25 each charge each month. When I checked out getting my own merchant account the rates and various charges are too high since I only have 5 renters wanting this option at this time. Likewise Paypal fees are rather high as well.
[ Edited by keitachan on Date 08/15/2008 ]
I investigated ACH... ACH is also relatively expensive for 5 properties, so I decided against it. I have taken CC for deposits to hold a property but not for recurring rent payments. I would recommend that the tenant do a cash advance then pay you by electronic check (e.g. an online "bill pay" service.)
My wife and I are thinking of setting something up to help out with the rent payments for the tenants as well as to make sure people pay.
We have had several "high and dries" this past year.
But I think another reason why Paypal or Credit Card payments will work. No more Judgements and collections.
http://www.rentometer.com offers a ACH service. I think it was $5/check.[ Edited by cjmazur on Date 08/28/2008 ]