More and more banks are removing overdraft fees. Consumers have long hated the $30-$50 they would be charged by banks for overdraft. At ClearNow, we applaud this move by banks. We believe that tenants are much more likely to use online rent payment with expensive overdraft fees removed from the picture.
With ClearNow, landlords pay our online rent payment fees. Using ClearNow is free for tenants. In fact, tenants can build credit history by using our service. However, some tenants in the past have been scared to use online rent payment because – if they mistime their paycheck just once – they could incur hefty overdraft fees. Now with banks removing these fees, tenants benefit from online rent payment without the fear of this fee. Landlords benefit, too, when tenants use online rent payment. The rent collection process is easy and efficient – A win win for everyone!
In early 2022, Bank of America and Wells Fargo started removing or reducing their overdraft fees. When the largest banks do this, smaller banks and credit unions followed. Consumers win. At ClearNow, we believe this change will further encourage the use of online rent payment by tenants.