Finding a way to complete chores in the fastest and most painful manner is a win. When it comes to the chore of paying rent, tenants who can pay rent online achieve speed and ease. The two most popular methods of online rent payment are credit card and ACH.
Pay Rent Online by Credit Card
Paying for goods and services by credit card is very popular in certain markets, such as dining and consumer goods. In these markets, credit card payment in person or online is highly accessible. In the real estate rental market, however, credit cards are not popular. Many landlords do not accept credit card payments mainly due to the high cost that credit card companies charge. Fees are typically based on a percentage (usually 2% to 3%) of the amount charged making it quite expensive. For example, a $500 rent payment can cost the landlord $10 to $15 in fees. Even though the fees are high, there are services that enable tenants to pay rent online by credit card. Tenants who can pay rent by credit card will benefit from rewards they can earn with their card company as well as cover them if they are short on cash when rent is due.
Pay Rent Online by ACH
The Automated Clearing House (ACH) Network enables the electronic transfer of funds between bank accounts. One of the most popular uses of an ACH payment is with direct deposit for payroll. Most employers will pay employees as a direct deposit to the employees’ bank accounts using the ACH Network. Rent payment by ACH is much more popular than credit cards partly due to the reasonable cost. There are many online rent payment services that enable tenants to pay rent online by ACH. These services will differ on factors such as cost and features. For example, ClearNow does not charge tenants to pay rent online (landlords pay the fee) and will furnish rent payment data to the Experian credit bureau for those tenants wanting to build a credit history.
Tenants who want to make their lives easier should look into paying rent online. There are online rent payment services that offer credit card and ACH as payment options.