Credit/Debit Card Transaction Fees
Allowing your tenants to pay rent with a credit or debit card is a feature available by enrolling in Online Payment Processing.
You are charged a processing fee of 2.95% (3.5% for Amex) of the exact amount the tenant designates to send plus any transaction convenience fee that you decide to charge them.
Understanding the Tenant Convenience Fee Charge
If rent is $1000, a 3% convenience fee would equal $30 so the tenant will pay a total of $1030. However, the amount you pay for the credit card processing will not be 2.95% of $1000 but rather 2.95% of that total $1030 (payment plus convenience fee) resulting in a $30.39 fee you will pay for processing.
Tiered Convenience Fee Increments
Transaction fees that you charge your tenants are tiered in $100 increments.
* Accepting an application fee requires an Online Payment Processing account with Credit Card processing enabled. Your account will be charged for the credit card processing fee and you, in turn, can decide if you would like to increase your application fee in order to help absorb the cost.
Convenience Fee Settings
Your Rentec Direct software allows you to specify a convenience fee the tenant will pay to use this option to recover (markup) that processing fee.
Commonly this is set between 3% to 5% and high enough to reimburse you for your 2.95% transaction fee for VISA, Master Card, and Discover (3.50% for AMEX) card processing.
Instructions to set or change the default convenience fee for all tenants can be found here: Payment Processing Settings | Preferences