Adoption of Digital Payments amid the PandemicMay 18, 2020
While the U.S. government has started easing lockdown restrictions in most of the states, following social distancing rules will still be required to reduce the risk of spreading COVID-19. That is a significant motivational factor for landlords to eventually apply digital tools to their rental business to minimize face-to-face interactions. Among all the digital solutions available, the adoption of digital payments is one of the easiest measures to take amid the pandemic.
Overall, total transaction value in digital payments amounts to $4,769,370 so far in 2020. These numbers confirm the fact that digital payments are now on the path to becoming an indispensable part of the business world. Digitization of payments allows us to make purchases and close financial deals faster and more securely.
As a landlord, you may want to consider online payment methods with comprehensive features that will allow you to receive funds quickly and let your tenants securely send payments online.
When looking for an online payment service, focus on:
With a reliable payment system in place, there will be less hassle when it comes to monthly rent collection. Make sure you trust the service and can rely on its customer support if any questions arise. For that, investigate the platform you’re considering for your rental business. Look for reviews and recommendations from the customers who are currently using the service. That will help you view the electronic payment platform from different angles.
- Processing time of the transfer
The processing time of a transfer shouldn’t take an eternity. With most tools, the funds typically hit the recipient’s bank account within a few business days. If time is critical for your business, pay particular attention to the average processing time of a transaction.
- User experience
If your tenants find it difficult to provide rent online through the system you’ve chosen, it might result in delayed payments, inaccurate amounts paid, etc. If that happens too often, go through the payment process from the tenant’s side and try to define their pain points.
If the process cannot be improved, consider a different payment tool that would be easier for your renters to use.
- Transaction fees
Transaction fees vary depending on the online payment service:
Stripe requires a transaction fee of 2.9% + 30 cents per successful transaction. But at the same time, there’s no setup or monthly fees. This means neither you nor your tenant will be surprised by any hidden fees.
PayPal requires the same convenience fees as Stripe does (2.9% + 30 cents per transaction), but it cannot accept ACH or wire transfers.
Because it’s always better to have everything in one place, landlords may want to opt for a property management software system with an integrated payment system. TenantCloud offers TC Payments powered by Dwolla- a great online tool for digital payments. TC Payments requires no fees per transaction, but you’ll need to upgrade your account to the $9/mo Standard Plan. For security purposes, TC Payments requires its users to verify their accounts using either instant account verification or micro-deposit verification.
Moving your rental business online and adopting digital payments can be a challenging task at first. But the whole world is undergoing major changes to survive the crisis, and taking a few measures that would save your property management business is just what the doctor ordered.
What online payment services are you currently using? Is there something you’d like to be improved in your electronic payment platform?