Property management merchant accounts
Property management companies tend to sit within a larger estate agent set up, however there are some stand-alone maintenance firms. The arrangement between company and landlord/tenants impacts what payments are paid for by who, but the method tends to remain the same. Most card payments are taken over the phone for property management.
Property management merchant services
Finding a merchant account for a property management company can be tricky, especially if your agency is new to the rental markets and has no history of accepting card payments. There are some mainstream merchant service providers who will cater for property management companies; however, the majority deem the merchants to be high risk.
Property management high risk merchant accounts
So, why is property management high risk? There’s a few reasons acquiring banks think so…
PAYMENT METHODS – the majority of property management transactions are taken over the phone via a Virtual Terminal, which makes them higher risk as the card isn’t present.
CHARGEBACKS – although not massively high, chargebacks within estate agency and property management are higher than average, this is normally due to tenant disputes.
HIGH TRANSACTION AMOUNTS – especially in the student markets, property management companies can receive average transactions sizes of thousands of pounds in one go. These ‘high ticket’ payments often prove to be more of a risk to merchant account providers.
Property management payment processors
Finding the best payment processor for a property management business has a unique set of requirements. Things to consider are the way in which you want to accept payments (over the phone or in person via a chip and pin machine) as well as any bespoke system integration needs such as CRM or automated invoicing.
Property management payment providers
So, now that you understand the risk involved from the acquiring banks point of few and what type of account you’re looking for – you are well equipped to handle payment provider applications. The best way for your property management business to do so is by providing documentation which will prove stability and there for make the banks underwriting team see that although property management is high risk, your company is worthwhile onboarding. Alongside your application you’ll be asked for;
- ID and proof of address for shareholders/directors
- Incorporation certificate
- Licensing registrations – such as ARLA
- Proof of business/office location
- Six months transaction statements to prove limited chargeback rates
If you’re unsure of which payments solution is right for you and you need a hand with the application process, it may be worthwhile speaking with a non-biased broker to help.
Property management credit card processing
Once your application has been submitted it will be reviewed by the banks underwriting team who will agree to process credit card payments on your behalf. They will issue terms in which the bank is happy to do so. For property management card processing, there are a few things to look out for.
- Rolling reserve
- Deposit on account
- Settlement timeframes
- Minimum monthly service charge (if operating in seasonal businesses such as holiday lets/travel)
As always, we suggest you compare accounts on a pound for pound basis rather than headline rates or terminal hire costs along. This way you can make an informed choice on which card processing costs are best for your property management company. If you’re unsure, our experts can help.
Property management online payment processing
Despite payments being taken over the phone, there is an online element to property management payment processing. The reason for this is the use of a virtual terminal to accept payments over the phone. Additional online payment processing for management companies can include;
Pay by link
IVR (automatic telephone payments)
Online via ecommerce
Property management payment gateways
To accept any online payment methods your property management company will need a payment gateway as well as a merchant account. The gateway encrypts customer card information and facilitates the online element of the transaction. So, choosing the right payment gateway for your property management company is pretty important. Here are the things to consider;
SECURITY – each payment gateway is given a security level in the form of PCI DSS compliance, one being the best.
PAYMENT METHODS – believe it or not, not all payment gateways can accommodate all payment methods. So, for example if you want to accept ApplePay, AMEX or PayPal you need to choose a gateway which can cater for this.
LOCATION – gateway providers don’t always operate worldwide, which means if you are operating holiday lets overseas for example you need to confirm where your chosen gateway can accept payments from.
CHARGEBACK MANAGEMENT – gateways are much more than a payment facilitator; some payment gateways offer a chargeback management service which can be handy in industries such as property management.
INTEGRATION – gateways have to work with you merchant account, in fact some are provided by the same company, however, is there additional integrations which could help your property management service…CRM, accounting software, IVR provider.
BACK-OFFICE REPORTING – choosing the right gateway provider can help with card payments administration work. If this is a time-consuming task for property management staff, it’s a worthwhile consideration.
Our experts are on hand to discuss your payment gateway requirements, helping you to choose a solution which is right for your property management business. Call us today.
Property management merchant account instant approval
Due to the slightly high risk nature of property management businesses, there is a risk of termination or declined accounts which can leave company owners needing an account quickly. Although instant approval isn’t available for property management firms at the moment, you can often be up and running within a matter of days – providing you have all of your paperwork ready to go.
Property management business bank accounts
With high value transactions, finding the most suitable bank account for a property management is incredibly important. That’s why we’ve teamed up with partner brokers to provide up to date business banking advice. Our experts are experienced within property management and can help find business banking and finance to suit your requirements.
