Apparently, if you already have the cards they will still work, but you can't order any new ones. Just venting here because I built a plan for my new out-of-state property around this system and now I have to scramble to find a new way to accept payments without the hassle of checks, excuses, or cash. Having them go to a network of 24/7 nationwide ATM's was just too good to be true, I suppose.
Any other suggestions out there for similar services or banks that offer such a service with branches in both California and Michigan?
Set up a checking account at a bank near your rental. Give the tenants your account number and deposit slips. Set up on-line banking so you can see when the deposits have been made and cleared. Then write yourself a check from that account and deposit it in your home banking account.
Funny you should post this Paul. I just inquired with Chase the other day about these deposit-only ATM cards for my tenants. I was told the same thing as you (that they're being discontinued).
I do too much banking with Chase to switch banks over this one issue, but if you're still looking for another national bank that offers them I noticed that on Wells Fargo's website they advertise that they also have deposit-only ATM cards. Good luck.
Setup ACH through Chase with a business account. You can direct debit straight from your tenants checking account.
Some of my tenants don't even have checking accounts. Some don't have email either. Crazy in this day and age, I know. But that's why I was looking into the ATM cards because anyone can use those.
Thanks for the suggestion, Kyle. Unfortunately, Wells Fargo is in my home area of California but not in the area of Michigan where my rental is.
And you nailed it on the head as well - I have converted people who deal exclusively in cash to this system, the ACH or Quickpay just wont serve the same purpose. I have even heard of folks using a billpay system thru 7-11, even they are not very close to my rental, at least not as close as Chase's ATM.
I was in there today and pitched a fit to there business accounts person. I would be willing to pay a couple dollars for each of these cards, can't really understand why they would discontinue them...
Set up a checking account at a bank near your rental. Give the tenants your account number and deposit slips. Set up on-line banking so you can see when the deposits have been made and cleared. Then write yourself a check from that account and deposit it in your home banking account.
I was in a B of A branch today and they apparently continue to offer them there. I'll have to check with local banks in MI next time I'm there but the ATM card option is pretty solid compared to trying to coax a tenant into getting to a bank branch on regular hours... It certainly eliminates lots of excuses and hassle.
Actually, I don't consider this that hi-tech. I mainly looked into it for a few simple reasons.
#1 - Like Paul said, it helps defeat the tenant's excuse about not being able to get off work and make it to the bank in time during the week.
#2 - I don't like getting money orders in the mail from my tenants who don't have a checking account. With a check, I can snap a photo of it on my phone and it automatically gets deposited in my account. With a money order, I have to drive to the bank and personally deposit it. Since I don't normally go to the bank for any reason, this is just a wasted trip for me that I'd rather not make.
#3 - I get paid sooner from my tenants who deposit it themselves vs mail it to me. And that's a good thing.
Ultimately, it just comes down to it being more convenient for the tenant AND me.
I understood, but the tenant is the one paying your bills so you should go extra mile for your tenant. What does a checking account have to do with paying by money orders?
Joe Gore
If they don't have a checking account they have to pay by money order if they mail their rent payment. That's an added cost and inconvenience for the tenant. Giving the tenant the option to deposit the payment directly at a bank, or 24/7 at an ATM, actually is helping the tenant.
Joe, we are going the extra mile for the tenant. My company has 7 Wells Fargo Business Deposit Cards in use now (one tenant left 1/3/2014) and 2 more that I am going to deploy to tenants this week. Of the 7 cards, 1 person now uses IPN (Intuit Payment Network), one has not yet used the card, and all the rest have opted to use the card instead of mailing a money order. Of the 8, only 2 have the combination of checking account and internet service. Both of these two are over 50 years old. One is now using IPN. So figure it out.
We also credit their account based on the deposit day and time. Last month, we had one payment on the 5th (a Sunday) another on the 4th that were within the 'on time' grace period and resulted in no late fee. If the tenant were to have mailed a money order, they would have incurred a late charge (post marked on Monday the 6th, received by us on the 7th). So the card saves the tenant money, in late fees, stamps, and gas. Every one wins but the US postal service, the gas pump, and Father Time.
It is very unfortunate that Chase has discontinued this product. Hopefully there is a similar product from Chase for you. I will be extremely disappointed if Wells Fargo follows their lead.
I've had tenants send money orders that I never received until a month later, or a couple times they were lost. The post office is as efficient as the Afganistan transportation system. When a money order is lost, it's a huge hassle for the tenant. They have to make a claim where they got the money order and then wait to get paid. In the meantime, they need to come up with the rent money and pay a late fee. I hate getting money orders. I would rather get a personal check so if it's lost in our terrible mail system, the tenant can just write a new one.
I had a tenant mail a personal check at the post office on December 30. By January 2, I was asking where the rent was. He ended up going to my bank and depositing the rent. On January 30, I received his check for February. On January 31, I received his first check and the envelope was postmarked December 30. He did everything right and the government messed up. I hope the post office shuts down so mail can be delivered by UPS, Federal Express, or some other private company.
I like having tenants take the rent straight to the bank. Let them do the work and I can get paid right from my computer.
I've had tenants send money orders that I never received until a month later, or a couple times they were lost. The post office is as efficient as the Afganistan transportation system. When a money order is lost, it's a huge hassle for the tenant. They have to make a claim where they got the money order and then wait to get paid. In the meantime, they need to come up with the rent money and pay a late fee. I hate getting money orders. I would rather get a personal check so if it's lost in our terrible mail system, the tenant can just write a new one.
I had a tenant mail a personal check at the post office on December 30. By January 2, I was asking where the rent was. He ended up going to my bank and depositing the rent. On January 30, I received his check for February. On January 31, I received his first check and the envelope was postmarked December 30. He did everything right and the government messed up. I hope the post office shuts down so mail can be delivered by UPS, Federal Express, or some other private company.
I like having tenants take the rent straight to the bank. Let them do the work and I can get paid right from my computer.
I totally agree. I have had it with money orders. Already had one case where it got lost in the mail, and possibly another this month. Caused a huge headache on both sides; I kept asking where the rent was, tenant kept saying they mailed it in a week ago. They sent me a copy of the money order receipt and I called the number to verify that it was indeed real and was not cashed, so I decided to waive the late fees. It took them over a month to get their money back, plus a $20 charge for the refund.
The reason the post office is in bad shape it is run by union thugs.
Joe Gore
The deposit-only ATM will accept any deposit. The system I had going with Chase is that I kept track of which cards I had issued to whom and I had the ability to cancel them online if I needed to. The lease makes reference to the ATM deposit method being offered as a convenience and if at any time the card is lost, stolen, or not working the tenant is to pay by mail. In the event I were to have a tenant that started playing games with it or getting to the point of eviction, I had the option of discontinuing the card.
The card has no concept of partial payments or late fees. So, no. If the tenant is late and you want to start eviction, just cancel the card.
BTW, one of the primary reasons we offer the card is for the few long term tenants we have who pay with partial payments. They pay when they have money ... generally every other week, some times more often, some times less. Early payments are entered into Yardi as a pre-payment. If they have a balance on the 5th, they are charged a late fee.
I do what @Bryan L. does for those tenants that do not want to pay online with www.erentpayment.com. They go right to a TD Bank branch and deposit the money into my business checking account. TD Bank is open just about every day except major holidays.
If there's no convenient large bank in your area, use a local bank like Bryan said. I have never taken checks from a tenant, mailed or otherwise, and the only money orders I take are when they put a deposit on the unit and then pay the security and first month's rent...and that money order is given directly to my contractor who gives them the keys.
I don't know why it's considered high tech to pay online. I only advertise my rentals online, and if a tenant can use the computer to access craigslist, they can use www.erentpayment.com...or go to the bank.
I've been using Wells Fargo business accounts and it's pretty easy to admin.
My rentals are all in the greater Los Angeles area and Wells branches are all over. While I could give tenants a card, I've decided not to. I have one account for each rental, which us only used to accept funds. Tenants are given a one page instruction sheet with their property account # and the closest branch. They are instructed to make their deposit with a teller and their receipt is for their records.
I check the accounts online, usually on the 3rd, and confirm the deposit if each tenant. It's either there or not. Then, my system is to transfer the funds out of the rental accounts to a master account for better cash management and so tenant would have no way to bi-pass bank security to access funds in rental account. This takes about 5 -10 minutes.
I've only had one time I had to evict a tenant since employing this system and temporarily suspend their ability to make deposits of any size (in an attempt to defeat a U.D.). Wells didn't just suspend deposits; they closed the account. (That's what you get with modern bank personnel). Also, I did get a NSF check from a tenant however by the time I saw it the tenant had corrected the problem.
This system saved me from pulling out my hair making extra trips to my P. O. Box to follow up on missing "checks in the mail." Worse, tenants would send checks overnight signature required, necessitating someone (me?) to stand in line at the post office.
I've had tenants send money orders that I never received until a month later, or a couple times they were lost. The post office is as efficient as the Afganistan transportation system. When a money order is lost, it's a huge hassle for the tenant. They have to make a claim where they got the money order and then wait to get paid. In the meantime, they need to come up with the rent money and pay a late fee. I hate getting money orders. I would rather get a personal check so if it's lost in our terrible mail system, the tenant can just write a new one.
I had a tenant mail a personal check at the post office on December 30. By January 2, I was asking where the rent was. He ended up going to my bank and depositing the rent. On January 30, I received his check for February. On January 31, I received his first check and the envelope was postmarked December 30. He did everything right and the government messed up. I hope the post office shuts down so mail can be delivered by UPS, Federal Express, or some other private company.
I like having tenants take the rent straight to the bank. Let them do the work and I can get paid right from my computer.
I've had a similar issue…money order suggestion is the worst idea to drop in the mail. I try to work with the tenants to find a solution we can both live with and makes it easy for both of us. No issues with tenants going to bank and making a deposit with deposit only debit card. Btw, I use Wells Fargo business checking.
guys for me this is a simple question
either Paypal or ChaseQuickpay.
not being web-saavy is no excuse. Like they say: Just do it.
we charge an extra fee for any tenant that doesnt pay via Paypal or Quickpay. They all do it.
it takes 30 mins of getting used-to and then every tenant LOVES it afterward.
change, it turns out, is not actually so hard.
I received the same letter from Chase and decided to talk to my account manager on other options. As it turned out, the reason Chase discontinued the ATM-Deposit only card is to comply with new banking regulation on ability to track cash deposit from identifiable source. He mentioned something about some foreign drug dealers were depositing cash by "mules" and were not traceable by government. Apparently Chase was fined for not reporting the suspicious activities.
Anyway, the only option is to have an "associate atm card" where you can limit the withdrawal amount to $1 and the card can only use in ATM and POS and has no access to balance. The risk is if they use it in a situation like gas station where an authorization is done first, then you could be out of the amount when the transaction completes. The difference with associate card is that you would need to identify the name, birthdate and residency of the "associate" which you have that information from the lease agreement.
I did suggested that Chase should have a limited associate card which only allow atm-deposit but has the identifiable information to comply with regulation. Hope they would do this.
For those who use the deposit only cards, does it let you refuse partial payments? What about automatically calculating in late fees?
I can see a savvy tenant taking advantage of the loopholes...
Florida fixed their partial payment loophole by explicitly saying in the law what happens with a partial payment and that it does not reset the eviction clock. I did't think other states had that issue also, since Florida had a tenant based interpretation put on a law that was not intended to be used in such a stupid fashion.