Credit Card Payments for Monthly Rent

[Dan Porath]

Our bank has an option that allows us to run credit/debit cards through them. There is no monthly fee directly for us, but they do charge a 2.75% fee for the charge. How does everyone handle this? Do you just eat the charge for the convenience of getting paid directly and having the credit card deposited right into your account, or do you pass this charge on to the tenant? Currently they all pay via check in the mail. Thanks for all the help!

[Nathan Gesner]

No, you do not eat the charge! On a $500 rental, that fee is $13.75 and on a $1,000 rental it is $27.50. Why would you give your renter a discount for paying with a card?

I allow credit card payments, but I don't like it. If a tenant pays once to get through a tough spot, that's acceptable. If a tenant is trying to charge their rent more than once, it's an indication they can't afford the rent and may be in financial trouble.