Payments processor Entrata has entered into a partnership with Visa to launch an enhanced payment and authorization programme to the multifamily industry.
As result of the partnership, a lower cost payment method for Visa debit card holders will be launched. The programme will also minimize the number of steps it takes to authorize and process rent payments.
Entrata ResidentPay vice president Kate Hampton said: “High, restrictive fees and cumbersome processing methods have traditionally kept renters from using cards to pay rent and made it challenging for operators to have an efficient method of payment processing.
“We’ve been collaborating with Visa on a framework that we hope will eventually update Visa’s card acceptance rules and regulations to meet the unique processing needs of the entire multifamily industry.”
Entrata, which processed over $18bn in payments over the last 12 months, found the average adoption rate for transactions by card was 4%.
A 10-month pilot of a new programme for ResidentPay customers using the outlined framework showed increased card adoption by over six times for many of the participants like Trinity Property Consultants and Wasatch Property Management.
The framework will eliminate phone authorizations and several fee restrictions for credit and debit card payments. It will also minimize debit card fees to as low as $4.95 for participating properties, the company said.
Trinity Property Consultants marketing and training vice president Carla Alicea said: “With the renters’ switch to paying with card, our properties are able to spend less time scanning checks and associating payments.
“It really makes for a more streamlined payment process, allowing us to eliminate errors, have a better paper trail and save an immense amount of time in the leasing office.”