Payment processor Entrata announced on Thursday (Sept. 15) it entered into a strategic alliance with Visa to introduce an improved payment and authorization program to the multifamily industry.
As a result of the alliance, a lower-cost payment method for Visa debit cardholders will be introduced. It will also reduce the number of steps it takes to authorize and process rent payments.
“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,” said Kate Hampton, vice president of ResidentPay at Entrata, said in a press release. “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.”
According to Entrata, it found in processing more than $18 billion in payments over the last 12 months that the average adoption rate for transactions by card was 4 percent. A 10-month pilot of a new program for ResidentPay customers using the outlined framework showed increased card adoption by more than six times for many of the participants. The new framework for the program eliminates phone authorizations and several fee restrictions for credit and debit card payments and has reduced debit card fees to as low as $4.95 for participating properties.
“With the renters’ switch to paying with card, our properties are able to spend less time scanning checks and associating payments,” said Carla Alicea, vice president of marketing and training for Trinity Property Consultants, in the press release. “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.”
Entrata anticipates the new partnership will help make online payments more accessible in communities nationwide.
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