Best Credit Card Processors for Property Management

Even a decade ago, collecting rent involved a face-to-face meeting or the uncertainty of dropping a rent check into the landlord’s mailbox. Any number of hindrances made this inconvenient for all involved.

Now, whether commercial or residential, a renter can pay with the click of a button. Funds are almost instantly cleared, making it easier for a property manager to keep the books balanced.

Long gone are the days of bounced checks, clearing checks, and the trips to the bank to deposit payments. Now, that transaction is taken care of by a payment processing company.

Using a payment processor also eliminates late payments. Lessees can use credit cards to cover the gap between the first of the month and the next paycheck.

All that’s left now is to find the right processing company to help you accept digital payments.

Our Top Picks for Property Management Credit Card Processing:

Easy Pay Direct
Has sophisticated systems that streamline the process for property managers, whether they are using an integrated online payment portal or a physical terminal. Also offers Load Balancing for high risk accounts.
Domestic accounts have zero early termination fees.
Variable contract terms.
High risk tolerance.
Single point of contact for multiple merchant accounts.
Public pricing is available.

summary

5/5

Best for

E-commerce companies, SaaS companies, "high-risk businesses", & established small/medium businesses ($500,000+ in annual sales)

Specializes in

Easy Pay Direct has unique gateway software and banking solutions to optimize payments for eCommerce, SaaS, information products, supplements, and CBD amongst other verticals.

Pricing Summary

Setup Fee:  $99

Monthly Fee: $24.95

Swipe Rate: 1.59% + $0.17

Keyed-in Rate:  2.39% + $0.29

Early Termination Fee: $0 (domestic accounts)

Contract Terms:

1 Year 3 Years
PaymentCloud
Their payment gateway can allow for invoices to be emailed with payment links and allow recurring billing. They also integrate with a variety of shopping carts if you already have a system in place.
No setup fee.
No monthly fee.
Every business has a dedicated account manager to serve them.
Merchants have access to around the clock seven day a week support.
Account setup within twenty-four hours.

summary

4/5

Best for

High-Risk Merchants

Specializes in

High Risk

Pricing Summary

Setup Fee: None

Monthly Fee: None

Swipe Rate: Unknown

Keyed-in Rate: Unknown

Early Termination Fee: Unknown

Contract Terms:

Bank Associates Merchant Services - BAMS
Boasts an innovative pricing model that helps offer a competitive price for clients.
Takes a personal approach to each merchant account.
Primarily works with low-risk businesses.
They have a value-added service to help small businesses secure growth loans.
They accept all major payment types.
Quick setup for their integrated software.

summary

5/5

Best for

Merchants in various industries, including e-commerce, restaurants and many types of retailers in need of payment processing services for multiple payment types.

Specializes in

Bank Associates Merchant Services specializes in Level 2 and Level 3 payment processing solutions through its own proprietary software. This company also offers chargeback defense and dispute assistance to help merchants keep their chargebacks as low as possible.

Pricing Summary

Setup Fee: N/A

Monthly Fee: N/A

Swipe Rate: Unknown

Keyed-in Rate: Unknown

Early Termination Fee: $595

Contract Terms:

Unknown

Why Would I Use a Payment Processor?

If you own or manage more than a couple of properties or units, working with a payment processor can be a great, time-saving idea.

Even with a small number of units or properties having a processor can cut down on the time needed to ensure the steady flow of income. It can also make payments easier for your tenants, by allowing them to use additional forms of payments.

Working with a credit card processor will give your business the ability to accept:

  • All major credit cards including Visa, Mastercard, American Express, and Discover
  • eChecks and ACH payments that connect to bank accounts (useful for B2B)
  • Digital Wallet payments like Google Pay or Apple Pay

Unfortunately, property management is considered a high risk business. This means that some of the most popular payment processors will not work with your business.

Don’t fret! There are many reputable and experienced payment processors to choose from that can provide the features and services you are looking for.

Why is Property Management Considered High Risk?

Banks and payment processors determine which businesses are high risk based on a multitude of factors.

Some factors include:

  • Having large transaction amounts
  • Having a higher rate of chargebacks and fraudulent claims
  • Having a low credit score

Based on the trends of the industry, property management falls into this high risk category.

What does this mean for your business? It means that often your account will be subject to higher processing rates and fees compared to other industries.

You may also have a more in-depth application process when seeking a processor. In order to be prepared, you will want to gather some information before even starting the process.

Some documents you may need include:

  • Several months of recent bank statements
  • Tax returns
  • Personal credit report

Your business may also be required to hold additional capital reserves with the processor in order to cover any chargebacks that may occur.

Be sure to discuss the requirements of the account with your payment processor before entering into any agreement.

Things to Consider When Choosing a Credit Card Processor

Choosing a credit card processor can seem overwhelming when there are so many choices and options. Certain factors should be prioritized when making your decision.

Rates and Fees

This is the most important factor to consider. Payment processors can use a variety of pricing models.

Some of the most popular include Interchange-Plus, Tiered, Flat-Rate, and Subscription.

Most processors will review your transaction history and help you decide which model might be the most cost-effective for your business.

This may depend on how many transactions you complete monthly and your average chargeback rate.

Some of the more common fees to look out for are:

  • Chargeback fees: These occur when a transaction gets reversed after a customer disputes a charge. Not only do you lose that revenue, but you will be assessed an extra fee. This can vary widely between processors.
  • Monthly fees: Some processors may assess this fee for high risk merchants to mitigate their risks. Others have no monthly fee.
  • Termination fees: High risk merchants are often asked to commit to a term with the processor. Be aware if there are any fees associated with terminating the agreement before the term is up.

The processor should be able to review all rates and fees with you so you know exactly what to expect.

Value-Added Features

Any time you have a multi-unit property, utilizing a payment processor can save hours on a monthly basis and ensure a steady income.

Using a payment processor can cut down on paper and ensure bills are not lost in the mail. Payment links can be sent directly via email and save on postage costs.

By working with a payment processor, you can gain access to digital tools that add value to your business operations.

Recurring Billing

Credit card payment processors can offer virtual terminals where a tenant can set up auto-pay and never miss rent again. They can also break up payments into smaller weekly payments to facilitate budgeting.

The payment processing software will store the cardholder’s information to simplify the process for the tenant.

Managing Repairs

Some payment processors can offer systems tailored specifically to property management.

Tenants can submit repair requests right in the customer portal and you can use the system to manage the status of these requests.

This is another organizational tool your company can gain that is built into the cost of processing.

Tenant Management

By working with a payment processor, you can automate reminders being sent out to accounts that are late or delinquent. This will cut down on the work you or your staff need to do.

You can also access and analyze your tenant history in a way that can allow you insights you may have not realized if reviewing records manually.

You can review what percent of your tenants pay on time with computer-generated reports.

These features can help you collect more revenue on time.

Chargeback Prevention and Resolution

Some processors offer programs that help to mitigate their risk and yours through chargeback prevention and resolution services.

Oftentimes, this utilizes a system that can alert you immediately of any dispute once it is initiated to give you the opportunity to resolve it with your tenant.

This can also take the form of offering you assistance in resolving disputes with live help.

Another way credit card processors can reduce chargebacks is by employing strict security measures that minimize fraudulent transactions such as AVS (Address Verification Service) matching.

By choosing a processor that includes added-value features like these, you will save money in the long term.

Security

Cybercrime continues to be a major threat in the US. In storing multiple tenants' information, you may become a target for such activity.

As a result, you will want to choose a payment processor that takes security seriously and takes multiple measures to protect you and your tenant’s data.

The Payment Card Industry Security Council sets standards annually that ensure companies and card processors do everything in their power to secure data.

Be sure that the company you choose is PCI compliant, meaning they employ all of the measures set forth by the standards.

Being out of PCI compliance can actually result in additional fees for your business in addition to exposing your data.

Some of the standards include:

  • Maintaining a secure network
  • Being up to date with antivirus software
  • Employing P2PE (Point-to-Point Encryption)

An experienced processor will be very familiar with PCI compliance and will be able to explain their practices to you.

Additional Tips & Considerations

Beyond the items mentioned already, there are a few additional considerations that should factor into your decision.

Be Open and Honest

The more information you can bring to the processing company, the easier time they will have matching you up with the correct product.

By being transparent and honest, you will find the best match for the long term.

Be ready for the process by being in good financial standing. Hopefully, your business has a good amount of cash reserves to indicate stability and increase your chances of getting approved.

Know Your History

Be able to explain any chargeback incidents. Sometimes, the narrative behind the situation paints your business in a much more favorable light and can be useful during the application process.

Research the Processors

When you have found a processor that you think checks all of the boxes, you may want to do a quick internet search to check to see if there are any negative reviews.

Sometimes, the experience of other business owners can be the most reliable way to determine how your experience will be as well.

Additionally, it is a good idea to know what type of customer service the processor provides.

Customer service is another valuable feature that doesn’t seem like a deal-breaker until you need it.

Be sure that the processor offers access to live support during the times you may require it. Some processors offer live 24/7 support while others may only offer live support during normal business hours.

If your ability to accept payments is interrupted, you will want to resolve it as quickly as possible so make sure that your processor offers a variety of ways to contact them in case of emergency.

Final Thoughts

For most property managers, finding a good payment processor to help streamline your rent collection can be a major time saver and help increase revenue.

Whether you own commercial properties or multiple residential rentals, being able to accept online payments will present a sleeker, more modern face to your renters and provide multiple ways to pay.

In the 21st Century, people expect instant gratification. Whether that is an online purchase or paying their rent, they expect to be able to accomplish the task with the press of a button.

First and foremost, be able to compare rates and fees between processors as well as be aware of what pricing model your account will use.

Credit card processors should be able to share these with you in a transparent way.

Seek out a processor that can offer you a system that can add value to your business beyond simply accepting payments.

Having the right online presence and correct payment portal can afford your renters that instant payment and offer them added bonuses such as auto-pay and weekly payments that are withdrawn from their bank account without them having to think about it.

Some systems can also allow you to manage maintenance requests and generate reporting that will give you valuable insights into your business.

Be sure to also choose a credit card processor that takes security seriously and is PCI compliant.

Always ask what measures the processor employs to safeguard your data.

Establishing a property management credit card processing account is a critical business component that you will need to invest the right amount of time and consider all relevant factors before choosing.

By being informed and knowledgeable, you can enter this process with a sense of your needs as well as what features would be on your wish list.

The good news is that if you take the time to choose wisely, you will be set up for a long-term solution that benefits your business every day.

Be sure to check out our top picks for the best property management credit card payment processors:

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