Credit Card Processor

I know of the main stream ones like Stripe and Squre - but I dont know much about them.

What I am hoping to achieve is to have a simple app or online portal where I can go in and type their information in (or scan their card) - and it routes that payment to me of course. The fee, ideally, would be charged to them automatically, instead of me having to factor it in. But on that note, who has the cheapest fees? I am just starting to think about taking credit cards as a payment source, so I have no idea how much I would actually use the service. So I'm not extremely keen on a monthly fee. But its payments as little as HOA fees, with their payment being ~$200 as a minimum. With some people asking if they could pay rent - which would be upwards of $4500. If they want to pay by a credit card, then they would have to agree to the 3.5% additional fee for example. (4657.50 total).

Any suggestions, or stories, or experience I think would be helpful. I want the option, but I dont want to pay a lot for startup or anything at all really. But on that same note, I would want to save my clients money as well.

Intrinsic said:

Can people do chargebacks on cards if they used it for rent? That’s sounds terrible if so.

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We already have verbiage inside of the lease for failed payments in regards to personal checks. As we're not expecting an 85 year old to learn how to use Cashapp, for example. Or to go to Kroger or USPS and get a money order every single month. For example, the below stipulations below are what I think would be appropriate, and are pretty similar to what happens if a check bounces.

For example: it would be up to the landlord to accept the risk, not my company. I hold the initial deposit in a long term stock account, so that would be at risk if there was a chargeback. Granted the tenant would be given time to rectify the charge. If the tenant was allowed, per the landlord, to pay a second CC payment - I would hold the funds for 121 days, etc. If you think I missed something, I would gladly appreciate a suggestion to help safeguard myself.

sleevedraw said:

Could look at Bilt. My understanding is that it just gives people the option of using credit cards if they want to (in addition to debit and ACH), and they don't charge any overhead to the landlord. A lot of people were complaining about the Bilt 2.0 card rollout, but that's mostly on the renter side, and you don't necessarily need to use a Bilt credit card to pay rent through them.

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Thats an interesting system. I put an inquiry in on their alliance page and Ill check it out with a salesman. Not just because of the CC option, but just in general curiosity. Though, it sounds like another layer of trouble on top of Quick Books at first glance.

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To be specific, this isnt just for tenants to pay rent. As you can see above, rent would be setup to be discouraging and I'll likely add the late fee on top of the merchant fee for rent to be paid on a credit card.

What I need it for "mostly" is to allow Landlords to pay for large repairs that are routed through my company. We handle the legwork of the repairs, and the landlord is never bothered with the particulars. This one property we have right now, for example, has a big repair. The previous owner of the property put subfloor down on TOP of the hardwood floor, and glued linoleum down on top of that. Fast forward to now, the hardwood floor has been rotting all this time and is now causing the subfloor on top of it to rot. The repair for the areas thats been done (2 Bathrooms and the Kitchen) is going to cost $3100. The company is structured to add 15% on top of the repair. He's been informed the repair will cost him $3,565 and wanted to know if he can put it on a 0% credit card he has available. I told the agent I would get back with them about it, so.. here we are.

I understand there may be risks with charge backs in this situation, too. Which again, I'm all for suggestions on how to protect myself. But ideally, I'd like to set it up to take his payment with our fee, and the merchant fee attached ($3689.78 @3% (+0.5% for the difference in charge). Then pay the company doing the repair with the businesses cash back card.

Feel free to knock me out of any delusional take, but Im trying to map this shit out like a Jew if I start doing it. I would "love" to get a bigger piece of the pie instead of Visa or whoever is getting the merchant fee's. But its whatever.