ACH vs Credit Card Rent: Who Pays the Fee, Really?
Credit card rent sounds like a win — points for the tenant, faster payment for you. The economics are more complicated. Here's the math.
Online rent collection is now table stakes. The real question landlords ask is: ACH or credit card? The answer depends on who's eating the fee — and how you frame the choice to your tenant.
ACH: the workhorse
ACH (direct bank transfer) is the cheapest rail. Flat fee of $2–$3 per transaction regardless of rent amount. Settlement is typically 1–2 business days. Best for everyone: tenant pays a small fixed fee, landlord receives 100% of rent.
Credit card: convenience at a cost
Credit card processing runs 2.9% + 30¢. On $2,000 rent that's $58.30 per month — $700/year just to collect. The right model is to pass the fee through to the tenant who chose the rail. Tenants get their points, you get full rent, nobody is surprised.
What about debit cards?
Debit cards run lower than credit — usually 1.5% + 25¢ — but the convenience is marginal vs ACH. Most platforms either pass them through at the credit-card rate or disable them entirely. We pass them through transparently.
Our rule of thumb
Default tenants to ACH at signup. Make credit card opt-in, with the convenience fee shown upfront before they hit pay. You get 100% of rent on every payment method, and tenants self-select based on whether the points are worth it.
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