Ever forget your wallet and wish you could use your cell phone to pay for your daily cup of coffee? Those days have arrived. It’s 2012 and mobile payment technologies are booming, making payment transactions for residents faster and easier than ever. According to a Juniper Research study, it’s predicted that mobile payment users will grow by 40% to reach 2.5 billion globally by 2015. Payment transactions made through text messages continue to grow rapidly while other new mobile payment technologies and smartphone applications gain in popularity every month. Other mobile technologies, such as near field communication (NFC), allow people to make payments in stores, directly from their mobile phones quickly and securely.
With our lives mostly on the go these days it just makes sense to find ways for people to easily pay their rent. RentPayment has vowed to give renters a multitude of payment options including mobile payments with RentByText and our RentPayment Mobile iPhone App. Below is a video with more information on our mobile payment options:
Mobile payments help Property Managers Bridge the gap between technology and in person payments making them fast, easy, and secure. Properties see the benefits of accepting electronic payments for rent, including more on time payments, integrated accounting and higher closing rates on leases. Email us at Marketing@RentPayment.com to find out ways we can help get residents at your community making mobile payments today!
It’s no secret that collecting rent from residents can be a tedious and time consuming endeavor, especially when property managers use outdated or inefficient methods. Landlord.com and the Tenants Screening Blog have recently profiled some of the most outlandish and outdated rent collecting methods. Here are some examples of the extreme lengths property managers have taken to collect rent in the multifamily housing industry. Luckily for you, all of these headaches can be avoided by transitioning your residents to electronic payments with RentPayment.
Filling out 12 Self-Addressed Envelopes for Every Unit: It’s safe to say that no property manager enjoys opening hundreds of envelopes each month. However, the idea of having to make 12 self-addressed envelopes for each and every unit in your community seems completely inefficient and borderline humorous. Property Managers should be able to focus their efforts on improving their community, acquiring new leases and streamlining their workflow, not self-addressing envelopes.
Individual Bank Accounts for Every Unit: Imagine the headache of opening up a separate banking account for each unit and asking your residents to deposit the money directly into their specified account each month. Property managers that use this method have to confirm each unit has deposited the correct rent amount and on-time and open /close accounts whenever new leases are signed or old residents move out. This increases the property manager’s workload exponentially! Why not integrate your accounting software with RentPayment and completely automate the process? We can even keep a payment record archive for all current and previous renters forever.
Cash or Money Order Drop Boxes: Drop boxes have been known to increase the likelihood of theft and fraud in apartment communities. Methods to make drop boxes more secure have been passed around for years in the multifamily housing industry. But the bottom line is that no external drop box is safe, and it could be a source of payment disputes over the amount of rent paid or incurred late fees.
Creating a Monthly Bill for Every Unit: Besides that fact that you have to create and print individual monthly bills for every unit, someone has to deliver them. Skip the printing, save some trees and utilize electronic communication with your residents. Residents at your property are able to sign onto their RentPayment account from any internet connection, 24/7 and see their account balance* or receive click pay reminder emails (another form of an invoice). Another example of utilizing RentPayment’s marketing resources is in the form of custom eBlasts, that can be sent to your residents as a “Rent’s Due” reminder. *Available with most property management software integrations.
Require 12 Post Dated Checks: This method involves having residents fill out 12 postdated checks upon first signing the lease. By allowing credit card payments, residents are able to pay their rent even when they may not have the whole rent amount in their checking accounts. Electronic payment solutions also allow residents to sign up for services like RentPayment’s AutoPay. AutoPay is a recurring monthly debit from your checking account in the form of an eCheck, an electronic version of a paper check.
Collecting Rent Door-to-Door: This method is as tedious as it sounds, and not to mention, dangerous. No property manager should have to deal with the confrontation that comes with knocking door to door to collect rent. This method could also result in payment disputes as there is no paper trail or better yet, e-trail.
The benefits of electronic payment methods are clear; they save you both time and money. Educate your residents on the benefits of electronic payments and start to enjoy the ease and convenience of collecting with RentPayment.
For assistance with promoting RentPayment at your community feel free to contact Marketing@RentPayment.com. Or CLICK HERE to learn more about RentPayment’s marketing advantage.
Mobile payments may be the new “big thing” in the payment industry, but because it is still a relatively new concept, it is extremely important that your mobile payment options are both safe and secure. Due to the relatively recent adoption of mobile payments, there are currently no PCI Security Counsel standards for the mobile payment industry. Although the payment industry has no official guidelines that enforce security and privacy of mobile payment users, the core PCI security standards in general, should be followed. It is crucial to select a mobile payment processor that not only adapts these standards, but also goes a step further by implementing additional security features. Fortunately for anyone that uses our mobile payment options, like our RentPayment mobile iPhone app, we have created a mobile payment solution which is both simple and secure, through the utilization of a critical security feature known as, tokenization.
Tokenization is a technique that must be applied to the mobile payment industry to ensure that a consumer’s credit card information is secure. It is a “best practice technology,” that in the multi-family housing industry alleviates the responsibility of the individual property from storing their renters’ credit card information. Credit card information is stored through RentPayment rather than through the property management company, via an alphanumeric “token” that can only be used at RentPayment and serves as a substitute for the actual card data. No token can be used twice; every time a new payment is made the information is stored under a new token, which is useless to anyone that tries to access it. At no time does a renter’s credit card information leave RentPayment’s secure system nor is the information ever stored locally on the user’s phone.
Every time a renter wishes to make a payment, we access their information with the “token,” the payment is made, and their credit card information is stored with a new “token” or “key.” Not only does this process make mobile payments extremely secure, it also allows for a user friendly experience, since residents do not need to type in their information every time they wish to make a payment.
Some of our other mobile payment security features include:
1. Username and password login: Your renters create their own username and password to ensure no one besides them, can access their payment information.
2. Secure Channels: RentPayment uses digital certificates that encrypt data over a secure connection called a SSL (Secure Socket Layer) channel, preventing someone from listening in when the iPhone app is communicating with our servers.
3. Credit card and bank account validation: RentPayment always makes sure account numbers are valid and users’ account information matches with the issuing bank.
Therefore, whether your residents like to pay their rent online, by phone, or by mobile application, you can always give them the guarantee that their payment is safe and sound with RentPayment.
Want to learn more about tokenization? Check out this great visual explanation by one of our Software Architects, Xuyen On.
For more information about RentPayment’s mobile payment options, please click here.
With the vast amount of transactions RentPayment processes, it is imperative to uphold the premium level of security and service we offer our customers. In today’s global economy, organizations need to have adequate controls and safeguards when hosting or processing financial transactions. Payment processors who do not meet guidelines may expose property management companies and their renters to risk and fraud. To maintain superior data protection and control, RentPayment completes regular audits and certifications to ensure we are providing the most secure service to you and your renters.
PCI Compliance
The Payment Card Industry Data Security Standard (PCI DSS) is a worldwide information security standard. In order to attain PCI compliant status, RentPayment is required to pass a multitude of tests and security provisions. This annual audit ensures that RentPayment meets ever increasing data security controls to help prevent fraud and risk with card holder information. The core requirements to PCI compliance include: building a secure network, cardholder data protection, maintaining a security management program, access control measures, and regular testing of the network. RentPayment has just passed it’s most recent PCI audit, along with numerous audits in the past, attesting to how seriously we take security when it comes to our customers’ information.
SAS 70 Type II (Statement on Auditing Standards No. 70: Service Organizations)
SAS 70 is an internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA). Passing this in-depth audit establishes that RentPayment has developed control objectives for significant areas of internal control concerning engineering, operations, information technology and payment processing. The control objectives in the 2010 report addressed the following areas: Control Operations, Information Security, Application Change Control, Data Communications, Client Setup & Maintenance, and Payment Processing & Gateways.
White Paper
Educating and familiarizing yourself with industry standards is important to ensure your payment processor is providing a secure service and mitigating risk. RentPayment has produced a white paper to help inform our customers and partners about these significant data security regulations. After reading this paper you will have a better understanding of PCI compliance, SAS 70 audit standards, SSL data encryption, and the major rules set forth by Visa and MasterCard.
The year is 2011 and it’s fair to say that most residents own a computer and a cell phone. Since most renters have the tools necessary to pay electronically, management companies should take advantage of all the inherent benefits in digital transactions. Additionally, as technology shifts to mobile devices and PDAs, it will also make sense for apartments to expand their electronic payment options into the mobile payments arena or at least partner with a company that does.
Mobile payments are an increasingly popular form of electronic transactions and include payments by text message, smart phone apps, and through mobile web browsers. Payments by text message are the fastest growing payment method for RentPayment customers, averaging 1,000+ sms rent payments per month. Accepting mobile payments can be a solution to many of the recurring problems Property Managers face each month. For example, mobile payments are perfect for residents who need to pay when they are out of town and for renters that need to pay after hours or at the last minute to avoid a late fee. For Property Managers, it’s extremely helpful to be able to accept payments 24/7 and give renters several flexible options for how they can turn in payments. With this is mind, why would property managers bother themselves with slow paper checks or late rental payments from forgetful residents?
Research suggests the insecure stigma often associated with mobile payments may play a role in the lack of mobile payment adoption but RentPayment customers show no signs of delay.
Despite the high number of American households that utilize mobile payment solutions, many still question the security of these mobile devices. A recent study by Mobio Identity Systems reported that 51% of respondents have made one or more mobile payments within the past three months. However, the same study reported that 94% of respondents would make mobile payments if they could be ensured of its security.
For RentPayment clients, security clearly is not an issue. Property managers can assure residents that all mobile payments processed through RentPayment’s mobile interfaces are 100% secure. RentPayment’s mobile payment options, including RentByText and the iPhone app, pass rigorous audits to ensure that all renter credit card data and personal information is “lock and key” safe. If security is the issue, then RentPayment is the solution.
More about RentPayment’s Mobile Payment Options:
RentPayment is truly the industry leader in mobile payments for today’s on-the-go renter. We are the only payment processer with a channel to accept payments via text message through RentByText and the only payment processor with an iPhone app exclusive for payments and any RentPayment community. In addition, mobile payments can be made over the phone using both IVR (automated voice response) and live Client Care Representatives 24/7.
Allow RentPayment to be your leasing tool for apartment rentals! With RentPayment, property managers can supply an amenity any renter would love to have: the efficiency of quick, convenient, effortless and most importantly SAFE digital transactions!
A discussion on rules and compliance is likely to conjure two reactions in people – the anticipation of getting a root canal mixed with the frustration from the hassle of meeting the requirements. Most people don’t appreciate being told how to run their businesses but when you are handling credit/debit cards there are requirements for processing payments. The payment industry has evolved significantly from both a technological perspective (fraud and security breaches with card-present retail processing, chip-based solutions on cards themselves to prevent fraud) as well as a business perspective (Visa and MasterCard becoming publicly-traded entities and the financial regulation changes happening right now). This has expanded the requirements that all merchants that accept credit/debit cards must examine to insure proper card acceptance. In the apartment/multifamily industry, there are two areas that property management firms need to understand to not risk penalties or exposure to fines: PCI compliance and convenience fee regulations (when applicable).
PCI compliance defines the specific security standards to protect card information during and after a transaction. It is a rigorous yearly audit that any entity that processes, transmits, or stores cardholder information must complete each year at a cost of up to $50,000 annually. Many multifamily firms are using either a 3rd party processor, virtual terminal, or accounting software to collect and store cardholder data (since rent is a monthly transaction the property wants to have the renter’s card available for subsequent processing after the first transaction). The 3rd party processor and virtual terminal provider ALWAYS needs to have completed a PCI audit in order to be in good standing with the card associations. Software companies are required to also have completed a PCI audit if the user is keying the card data directly in the property management software then the software company must be PCI compliant as well. When considering a payment processing partner, it is critical that the company is current with PCI compliance (if their name is not on the list on Visa’s official website of PCI-complaint providers then they are NOT PCI compliant) – here is the link:
Convenience fee regulations are specific rules for how a fee can be assessed to a cardholder for accepting payments in an alternative channel (like online or by phone). In most industries, merchant acceptance does not involve convenience fees being charged to the cardholder since the merchant would lose sales if they charged a fee to consumers paying by debit/credit card (not to mention that it is not allowed in a card-present/face-to-face environment). The multifamily industry is moving away from convenience fees being charged to the renter as card acceptance that is fee-free to the renter is becoming a great way to close new leases, boost on-time payments, and be an amenity that renters actually want. For those property management firms that still have a convenience fee component, it is critical to understand card-specific requirements like:
Convenience fee must be a flat amount (like $9.95) and not a percentage-based fee (Visa card requirement)
All payment options in that channel must have the same convenience fee (Visa and MasterCard requirement)
Convenience fees are not permitted on recurring rent transactions (AutoPay Payments) (Visa requirement)
There are payment industry vendors that fly under the radar by not completing the PCI audit (they do not appear on the Visa PCI compliance list) and by violating fundamental convenience fee regulations. Whether you collect thousands or millions of dollars in rent, it is imperative that you verify that your payment vendor is PCI complaint and meets the convenience fee regulations listed above. It is simply not worth the obvious risk and financial loss when it is discovered and reported to the card companies.
Matt Golis – CEO and Founder, RentPayment (a YapStone company)
When it comes to rent collection, most Property Management staff only focus only on the bare minimum: on time rent payments and late fee billing. The most comonly overlooked issue concerning rent collection is security. When collecting rent, you should always rememeber that residents are putting their personal information and financial livelihood in your hands. If rent money or banking information is compromised due to poor security and operation policies, you put your residents and your community in danger. Stay informed and educated on the procedures of collecting rent securely.
Rent Drop Box Danger: Even the safest community can have fraud or theft issues arise from unsecure rent drop boxes. In a recent discussion forum on Multifamily Insiders managers discuss ways to make drop boxes more secure, suggesting angled chutes, certain distance from door ratios to prevent the always present issue of check theft. However, the truth is, no external drop box is completely safe.
A Secure Solution for Rent Collection: A solution to security issues when collecting rent is to implement and promote a secure and compliant electronic payment option at your community. Many of the renters who use the drop box likely do so because they need to pay rent after office hours or to avoid late fees. But with online payments, renters can pay any time. This may be a more convenient option for renters (since they won’t have to write a check and walk to the office drop box) and it is certainly a safer option.
Electronic payments also eliminate risk from human error. You never know when a check can accidentally be misplaced or a paper record can some how be leaked. In addition, it can also be risky when you’re exposing renter’s bank account numbers to multiple staff members at the property or a drop box thief. With online solutions like RentPayment, all credit card and eCheck data is locked and stored as tokens (a security measure called tokenization), plus only partial account numbers and credit card numbers are viewable to property staff. In addition, electronic rent collection doesn’t have to mean only online. With RentPayment, transactions can also be made by phone, or with AutoPay; giving renters multiple options to pay rent safely.
Recently, the information services company Experian most popularly known for their credit reporting agency, announced that it will be including rental data in the credit filings to be included in their score evaluations. With nearly 96 million renters in the US, reporting rental payments will be huge opportunity to improve and build credit for millions of college students, low credit or unbanked populations.
While this will also be a big opportunity to improve credit ratings it can also have the reverse effect. Hence, it has never been more important to pay rent on time. But not to worry, with companies like RentPayment, on time payments are easy. Renters should take advantage of AutoPay payments, where you can set the recurring transaction in advance. Or utilize rental reminder emails or text messages.
For more information on the credit reporting of renter data click here.
To many, the thought of paying your rent or bills online may include hesitation and concerns about security. Since the Internet has become so pervasive and fast, it can be hard to know which online services to trust with your money.
However, RentPayment makes the transition to ePayments easy and comfortable. With the quality services RentPayment offers, you can relax knowing your money is always transferred securely and on time.
Some may think paper checks and billing are still the safest way to go. However, there are huge risks associated with paper payments compared to online payment. According to American Banker Magazine, more than 1.2 million fraudulent checks are written each day. That equals more than 13 per second! By utilizing e-Payments, the chance of lost, misplaced or stolen checks is no longer a concern.
The truth is, problems with electronic payments are extremely rare. Due to accelerated processing times and instant return notification to the payee, the electronic check conversion process has proven effective in fewer returns, earlier fraud detection, and fewer errors.
Paying your rent and bills online can actually be safer than taking them to a bank or writing checks. According to NACHA (The Electronic Payments Association), almost 85 percent of identity theft occurs with offline transactions. In addition, RentPayment’s ePayment platform has received the highest level of security the federal government can award to a business processing ePayments, including PCI compliance and SAS 70 certifications. Personal data remains safe and secure on a private network that is only accessible by RentPayment security-screened employees. Furthermore, payer information is never released to third parties or banks.
With RentPayment, safety is guaranteed and convenience is promised. With our services, you’ll never forget to pay your bills again thanks to the email and text alert applications that remind you when money is due and/or withdrawn. To add to the list of conveniences, our electronic payments typically clear your account in about two business days, whereas paper payments can take weeks. Recurring direct debit payments can also be set up using AutoPay, eliminating late fees and penalties. In addition, keeping record of your payments and direct deposit details has never been easier thanks to our payments archive, which keeps track of your payments in an online database that you can easily access from anywhere. Now you don’t have to worry about endless amounts of paper and books to keep track of.
It’s time for a more convenient and lower risk solution – ask your property management company today if you can pay your rent using RentPayment!
The Blog is a one-stop resource for industry news, discussions on hot topics, best practices, creative marketing ideas and more. This valuable tool includes a wealth of knowledge gathered from the most relevant industry sources and posts written by industry associates and employees of RentPayment from all departments.
