Credit/Debit Card Transaction Fees

Allowing tenants the option of paying rent by credit/debit card helps ensure prompt payments, reduce late fees, and ensures quicker receipt of funds. As with most card transactions, there are merchant processing fees when credit/debit cards are used. 

How it Works

As the merchant:

• You are charged a convenience fee for credit and debit card transactions processed through your account
• You can then apply a fee to tenant payments to reimburse yourself for the fee
• When the fee is received, follow the quick steps for Paying Out Property Management Fees

Getting Started:

1. Create Income and Expense Categories
2. Add the Income Category to Payment Processing Settings | Preferences

Calculating Online Payment Fees

1. The rate you are charged

   1. You are charged a processing fee of 2.95% (3.50% for AMEX) of the total collected for tenant payments, application fees plus the convenience fee you charge tenants.

2. The rate you charge Tenants

   1. To cover your costs it's important to set your convenience fee high enough to account for the difference in the calculated figures.
   2. Percentage - You can set a percentage rate between 0 and 10% of the transaction.  It is most typical in the industry to set the fee as close as possible to your processing costs.

   3. Fixed - You can set a fixed convenience fee that is applied to all payments regardless the transaction amount. 

      
      

Example: 

If the rate you charge tenants is 3.05%, and your tenant makes a $1,000 payment.

Categorizing Convenience Fees

In order to maintain accurate recordkeeping, you will want to create an income and expense category for the fees.

Create an Income Category for Convenience Fees

In your Rentec Direct account:

1. Click on Settings
2. Under Financial, click on Chart of Accounts
3. Click on + Add Account
4. Enter a description that will be easy to identify (Convenience fee, processing fee etc.)
5. Use the Type dropdown to select Income
6. Use the Class dropdown to select
   1. Standard if you've selected to not have the fee show on the property
   2. Management Fee
7. Enter a Reference Number or allow the software to Auto Number
8. Click on Save New Account

Pro Tip: Once the Convenience Fee Income Category has been created, be sure to add it to your

Create an Expense Category

In your Rentec Direct account: 

1. Click on Settings.
2. Under Financial, click on Chart of Accounts
3. Click on + Add Account
4. Enter a description that will easy to identify (Convenience fee, processing fee etc.)
5. Use the Type dropdown to select Expense
6. Use the Class dropdown to select
   1. Standard if you've selected to not have the fee show on the property
   2. Management Fee
7. Enter a Reference Number or allow the software to Auto Number
8. Click on Save New Account 

Frequently Asked Questions

Q) Are fees the same for debit and credit cards

A) Yes, fees applied by csgForte are the same for both debit and credit card transactions

Q) How am I billed for the fee?

A) Charges will be applied monthly to your Rentec Direct account. A breakdown of charges can easily be reviewed on Rentec Direct monthly subscription invoice

Q) How much fee should I charge?

A) We cannot advise how much clients should charge. The average convenience fee used is between 3-5%. * Be sure to check your merchant agreement and local and state laws/regulations to determine if you are allowed to pass the fee on to your tenants and/or mark it up.

Q) Do Tenants know there's a fee when they pay through their portal?

A) Yes, tenants will see the full amount and will need to approve the transaction