LandlordOS
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PraxiOSOnce you collect rent online, the first decision is which payment methods to accept. Most small landlords end up choosing between two: bank transfer (ACH) and credit or debit card. They differ in cost, speed and risk, and the differences are big enough on a monthly rent to be worth getting right.
How does each one work?
An ACH payment moves money directly from the tenant’s bank account to yours through the Automated Clearing House network, the same system behind direct deposit. The tenant authorizes the debit once, or sets up autopay, and the money arrives after the transfer clears.
A card payment runs over a card network (Visa, Mastercard and so on). The charge is approved in seconds, but the money still takes a day or two to reach your bank, and the card issuer stands between you and the tenant if the charge is disputed.
What does each cost on a typical rent?
Processor pricing varies, but common published rates for US payments are about 0.8% capped at $5 for ACH and about 2.9% plus 30 cents for cards. On a monthly rent, the cap is what matters:
| Monthly rent | ACH (0.8%, $5 cap) | Card (2.9% + $0.30) |
|---|---|---|
| $900 | $5.00 | $26.40 |
| $1,500 | $5.00 | $43.80 |
| $2,400 | $5.00 | $69.90 |
Over a year, a single $1,500 unit costs about $60 to collect by ACH and more than $500 by card. Across a few units, card fees can wipe out a month’s profit.
That is why landlords who accept cards usually ask the tenant to pay the card fee. Whether you can do that, and how it must be disclosed, depends on state law and the card networks’ surcharge rules, so check both before you add one.
How long does each take?
A standard ACH payment usually takes one to five business days to clear, and then your processor pays it out to your bank on its schedule. A card payment is approved instantly and usually reaches your bank within a couple of business days.
For rent due on the 1st, that difference rarely matters if tenants pay on time, and autopay makes on-time far more likely. It matters most for a tenant who is already late and needs the payment to count today.
What can go wrong with each?
- ACH returns. An ACH payment can be returned after it looks complete, most often for insufficient funds or a closed account, usually within two banking days. A consumer can also dispute an unauthorized debit for a longer window after their statement.
- Card chargebacks. A cardholder can dispute a charge with their card issuer, often for months afterward. You then have to prove the charge was valid, and the money is held until the dispute is settled.
The practical rule is the same for both: don’t treat a payment as final until it has cleared, especially a tenant’s first payment or a move-in deposit, and say in the lease how a returned payment is handled. Many states limit returned-payment fees, so check yours before you set one.
So which should you accept?
- Make ACH the default, and ask every tenant to set up autopay at lease signing.
- Keep a fallback for tenants who can’t use online payment, such as recording checks or money orders by hand, so every payment still lands on the same ledger.
- Add cards only with a plan for the fee, either building it into your costs or passing it on where that’s allowed and clearly disclosed.
Whatever you accept, write it into the lease: the accepted methods, the due date, the grace period, and what happens when a payment is returned.
How LandlordOS handles rent
LandlordOS collects rent by ACH bank transfer, through the tenant portal, autopay or a no-login payment link, and deposits it into your own bank account through Stripe. Cards aren’t offered. The tenant pays exactly the rent; you pay Stripe’s ACH cost (0.8%, capped at $5) plus a flat LandlordOS fee of $1 to $2 per payment, depending on your plan. Cash, checks and Zelle can be recorded by hand, so every payment lands on the same ledger.