Prepaid Debit Card for ACH Rent Payment

Prepaid debit cards are one type of card payment.

There are different kinds of payment cards. Probably the most popular one is a credit card. With credit cards, the card owner is given a short-term loan and expected to pay it in full when due. Debit cards link to a checking account. So when the card holder pays with a debit card, funds are immediately withdrawn from the linked checking account. Unlike debit cards, prepaid debit cards do not link to a bank account. Instead, the card holder deposits money into a stand alone prepaid card account. When the card holder uses the prepaid debit card for ACH rent payment or other purchases, the card company deducts funds the owner’s account.

For tenants who pay rent through an online rent payment service, they may be able to pay by credit card, debit card, or prepaid debit card. Not all online rent payment services accept all types of card payment. For example, ClearNow does not accept credit cards or debit cards, but it can debit some prepaid debit cards. Tenants who want to use a prepaid debit card for ACH rent payment should first check with their card company to ensure their account can accept an ACH debit.