Online Payment Options: Which One to Choose?May 09, 2019
Let's be honest - most landlords and property managers are focused on making money. And who are we to judge? The rent collection process is an inseparable part of every property manager's daily routine. The more convenient payment system they choose, the smoother the overall process is. With numerous property management software systems offering different digital payment options, it's easy to compare and select the best platform for you.
We've analyzed three online payment methods landlords and property managers might find useful as their primary means of payment processing:
Stripe has a robust and flexible API, so developers love how easily it can be integrated. All documentation is accurately organized, which makes Stripe a great platform for integration with other systems. For customers, the main benefit to using Stripe is that it supports multi-currency and doesn't require adding a bank account. The only drawback is its convenience fee of 2.9% + 30 cents per each 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. Stripe offers a secure payment gateway, which confirms its status as a go-to platform among other similar online payment systems. Plus, there are no charges for refunds or disputes.
PayPal is a worthy alternative to Stripe. PayPal offers its clients secure payments, faster checkouts, and a system of rewards. With constant fraud detection, online transactions via PayPal are safe and secure. Also there's no need to re-type your financial data each time you initiate a payment. However, the setup process can be confusing for some, with too many fields to fill in and too many steps to take to finally get a confirmation. PayPal requires the same convenience fees as Stripe does (2.9% + 30 cents per transaction), but it cannot accept ACH or wire transfers.
All in all, PayPal and Stripe are good online payment options if you want your tenants to pay rent with a credit card. Both payment methods are available in most countries and can be set up within the TenantCloud account settings. TenantCloud users can use their existing Stripe and PayPal accounts to make payments within the TenantCloud system. Remember that you must set up a PayPal and/or Stripe account on your side to be able to accept rent.
3. TC Payments powered by Dwolla
When it comes to rent payments, rental application fees, and payments for work orders, most TenantCloud users choose TC Payments powered by Dwolla. Dwolla is a developer-friendly platform designed for tech-savvy users. It focuses on bank transfers and requires no transaction fees from tenants or landlords. For security purposes, Dwolla requires its users to verify their accounts using either instant account verification or micro-deposit verification.
TC Payments powered by Dwolla is available for landlords starting with the Standard Subscription for $9/mo. It's the perfect solution for property managers with multiple properties! The ability to add multiple bank accounts to receive rent based on property owners makes TC Payments even more appealing. Keep in mind that the platform is available for U.S. citizens only, so don't be surprised to see an "EIN" field in the setup form.
TenantCloud has recently launched an Auto-Pay feature allowing tenants who have set up TC Payments to enable Auto-Pay in their account. Now tenants don't need to sign in to their profile each month to make a rent payment. The system will automatically initiate a transaction before the due date.
What online payment method do you use for your business? Do you believe that the future is for digital payments? Share your advice and recommendations by leaving comments below. :)