What is required for a landlord to set up to receive EFT from bank bill payer systems? (apartment complex, tenant)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Talk to your personal banker and see what the response is. If your personal banker can't help you, I would get another one. Every bank has their "rules' ways for landlord to get their rent via, branch deposit or EFT. Wells Fargo has something call Way2Pay and there pay be fees associated. There are always 3rd party company but that will be the more expensive route. Last resort is Paypal. I don't love it but for small rent amount, I've used it with one of my tenant.
I am guessing you are asking because of my comment in your other post. I didn't go into details in the other post because you made it sound like you know what you are doing and is all set. The bottom line is if you want tenant to have the ability to deposit rent into your account. You don't give them the account number. You work with the bank to have them set up the account so that only deposit can be made and they don't need to know the account number. Some bank will do this and others may not. In keeping your account number safe, you reduce the risk of ACH fraud.
I have 8 properties and each has its own savings account at Wells Fargo. I give each tenant a book of printed deposit slips and that's how they pay.
One of the tenants is also a WF customer so he transfers each month in 2 transactions using the "WF sure pay" service (limit is $1k per transaction per day). One of my other tenants uses Paypal to "send money to a friend" each month -- this is a free service as long as they initiate it.
I have talked to my banker and they have no "pull" service. The only way I am aware of is using a 3rd party and the fee seemed high to me.
I have 8 properties and each has its own savings account at Wells Fargo. I give each tenant a book of printed deposit slips and that's how they pay.
One of the tenants is also a WF customer so he transfers each month in 2 transactions using the "WF sure pay" service (limit is $1k per transaction per day). One of my other tenants uses Paypal to "send money to a friend" each month -- this is a free service as long as they initiate it.
I have talked to my banker and they have no "pull" service. The only way I am aware of is using a 3rd party and the fee seemed high to me.
I was going to say, there has to be a way for small-fry landlords to do this. My apartment complex, which is owned by a large company, doesn't even have anything in place like this.
I've asked several times at my Wells Fargo and they've told me repeatedly my only options are to get a credit card machine, and pay the 2.8% transaction fee, plus monthly fees, etc., which is not financially feasible, or else to have the money wired, which costs like $50 total per wire (like $35 for the sender and $15 for the receiver of the wire, I think). Neither of those work for us.
Paypal is doable if you only have a couple of rentals, but if you have many, there is a charge to remove large amounts of money from the paypal account. Plus, tenants can cancel their payment for up to around 60 days, which is a problem.
I've asked this question on these forums before, but never gotten an answer that was financially feasible.
What about Square? It looks like there is a simple 2.75% charge for all transactions. I wonder if that'd work for credit cards AND debit cards. It looks like you can key and swipe all major credit card numbers.
I have my tenants set up auto pay out of their account into a rental account specific to that rental. All I'm giving them is routing number and account number. It costs nothing. It takes a few days to set up but once done its automatic. I can log on anytime and see when the deposit is made.
I asked the question just out of idle curiosity. Yes sj, it was your comment in the other topic and I didn't want to go off topic.
I just recently set up to accept credit report fees via PayPal but I know PayPal way too well to trust them with any significant amount of money, and I don't mind a small bite out of my $45 credit report fee but no way will I share my rental income with them.
I've got one of those Square D things. I tested it once, it works fine. It's cool to be able to take credit card payments from anybody, in a geeky way. In the practical world I have no use for it. Also, would have to stop by each tenant to run their card, and then share a cut with the bank.
Maybe I'll ask my banker tomorrow. Due to nasty tenant problem I've already spoken to the bank manager twice today and my personal banker 3 times today, and feel uncomfortable bothering them again about what is essentially just a question of idle curiosity.
What's wrong with simple Bill Pay procedure that every bank I know of offers or just a bank to bank transfer?
Having a bank account was always one thing I asked about on applications.
To me, it generally indicates more stability than 'all cash' people.
I asked the question just out of idle curiosity. Yes sj, it was your comment in the other topic and I didn't want to go off topic.
I just recently set up to accept credit report fees via PayPal but I know PayPal way too well to trust them with any significant amount of money, and I don't mind a small bite out of my $45 credit report fee but no way will I share my rental income with them.
I've got one of those Square D things. I tested it once, it works fine. It's cool to be able to take credit card payments from anybody, in a geeky way. In the practical world I have no use for it. Also, would have to stop by each tenant to run their card, and then share a cut with the bank.
Maybe I'll ask my banker tomorrow. Due to nasty tenant problem I've already spoken to the bank manager twice today and my personal banker 3 times today, and feel uncomfortable bothering them again about what is essentially just a question of idle curiosity.
Honestly, since it is borne out of the current issue you are having it seems completely appropriate to ask them while the problem is still fresh in everyone's minds.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
