How to accept credit card payments as a landlord or property manager

You can accept credit card payments through a payment processor, a rent collection platform, or your bank. The most common route is to sign up with a payment processor like Square, Stripe, or PayPal, which lets you collect payments online or in person. Some landlords use dedicated rent collection software like Cozy or AppFolio, which handles credit cards alongside other payment methods. Your bank may also offer merchant services directly, though this is often more expensive than third-party processors.

The key decision is whether you want to absorb the processing fee yourself or pass it to the tenant. Most processors charge between 2.2% and 3.5% per transaction, plus a small flat fee. Many landlords build this cost into the rent amount or add a separate convenience fee when a tenant chooses to pay by card. Some states and localities limit or ban convenience fees, so check your local rules before you set one.

Key Takeaways

  • Payment processors like Square, Stripe, and PayPal are the fastest way to start accepting cards, and most charge 2.2% to 3.5% per transaction plus a flat fee.
  • Rent collection platforms like Cozy and AppFolio combine card payments with lease tracking and tenant screening, but cost more than a basic processor.
  • You can pass the processing fee to tenants as a convenience fee, but some states and cities prohibit or limit this practice.
  • Online payment links let tenants pay without visiting an office, and most processors send you the money within one to three business days.
  • Keep records of every payment for tax purposes and to defend yourself if a tenant later claims they paid when they did not.

Setting up a payment processor account

Start by choosing a processor and creating an account on their website. Square, Stripe, and PayPal all accept landlords and property managers. You will need your business name or personal name, a bank account for deposits, and a phone number. Most approve you within one business day. Once approved, you can generate a payment link to send to tenants, set up an online portal where they log in to pay, or use a card reader to swipe payments in person.

Each processor has different features. Square is straightforward and works well if you want to accept payments in person or send simple links. Stripe integrates easily into websites and apps. PayPal is familiar to many people but has higher fees. Compare their fee structures and features before you commit, because switching later means updating all your tenant payment information.

Choosing between passing fees to tenants or absorbing them

If you absorb the fee, you receive less money per payment but tenants see no extra charge. If you pass the fee to tenants, they pay the full amount plus a convenience fee — typically 2.5% to 3% of the rent. This is legal in most places, but not all. California, New York, and several other states ban convenience fees on rent payments. Some cities within states that allow them still prohibit the practice. Check your state and local housing laws before you add a fee.

Many landlords absorb the fee as a cost of doing business, especially if most tenants pay by bank transfer or check. Others pass it on only to tenants who choose cards, treating it as a premium payment method. Document your fee policy in the lease or in a separate written notice to tenants so there is no confusion when the payment is due.

Creating a payment link or online portal for tenants

Once your processor account is active, you can generate a payment link to send to tenants by email or text. The link takes them to a page where they enter their card details and the payment amount. This is the simplest method if you have a small number of tenants. Most processors let you customize the link with your business name and logo.

Alternatively, set up an online tenant portal where tenants log in with a username and password to make payments. Portals are more secure and let tenants see their payment history, but they require tenants to remember login credentials. Rent collection platforms like Cozy and AppFolio include portals as part of their service. If you use a basic processor like Square or Stripe, you may need to build the portal yourself or use a third-party service to manage it.

Accepting payments in person or over the phone

If you collect rent in person, use a card reader that plugs into your phone or tablet. Square Reader and Stripe Terminal are the most common. The reader encrypts the card data so you never see the full card number, which protects both you and the tenant. Tenants insert or tap their card, and the payment processes immediately. You receive a receipt to give to the tenant and a digital record for your records.

Accepting payments over the phone is riskier because you handle the card number directly. If you do this, use a PCI-compliant phone system that encrypts the data. Never write down or store card numbers. Most processors offer phone payment options, but they charge higher fees — sometimes 3.5% or more — because the fraud risk is higher. Whenever possible, use a card reader or online link instead.

Timing and deposits to your bank account

Most processors deposit payments to your bank account within one to three business days. Square and Stripe typically deposit within one business day. PayPal can take up to three business days. Some processors hold a small reserve for the first few months to protect against chargebacks, so you may not receive the full amount immediately. Check the processor's deposit schedule before you sign up so you know when to expect the money.

Keep a record of every payment in your own accounting system. Note the date received, the amount, the tenant's name, and the payment method. This protects you if a tenant later claims they paid when they did not, and it makes tax time easier. Most processors provide a downloadable transaction history that you can import into accounting software.

Handling chargebacks and disputes

A chargeback happens when a tenant disputes a charge with their credit card company and asks for the money back. The processor investigates and either returns the money to the tenant or sides with you. To win a chargeback dispute, you need proof that the tenant authorized the payment. Keep the payment receipt, any email or text confirming the payment, and your lease agreement. If the tenant claims they never received the service (in this case, housing), you can provide proof of occupancy, utility bills in their name, or photos of the unit.

Chargebacks are rare for rent payments because tenants live in the unit and the service is obvious. But they do happen, especially if a tenant is angry about an eviction or a maintenance issue. Most processors charge a chargeback fee of $15 to $100 if you lose the dispute. Respond quickly to any chargeback notice and provide all documentation you have.

Frequently Asked Questions

Can I require tenants to pay by credit card?

No. Most states require landlords to accept at least one payment method that does not charge the tenant a fee, such as check or bank transfer. You can offer credit card as an option, but you cannot make it the only method. If you charge a convenience fee, tenants must have a free alternative.

What happens if a tenant's card is declined?

The payment does not go through, and you do not receive the money. Most processors let you retry the payment or send the tenant a new link. Treat a declined payment the same way you would treat a late check — follow your lease terms and local eviction law. Do not assume the tenant is avoiding payment; the card may have expired or the account may have insufficient funds.

Do I need a business license to accept credit cards?

No. Most payment processors accept individual landlords without a business license. You may need a business license for other reasons depending on your state and local rules, but accepting cards is not one of them. You will need a Social Security number or EIN and a bank account in your name or your business name.

Which processor is cheapest for landlords?

Square and Stripe are usually the cheapest for online payments, at around 2.2% plus $0.30 per transaction. PayPal charges 2.2% plus $0.30 for standard payments but more for invoices. Rent collection platforms like Cozy charge a flat monthly fee instead of per-transaction fees, which may be cheaper if you have many tenants. Compare the total cost for your situation before you choose.

Can I accept credit cards without a website?

Yes. You can send tenants a payment link via email or text, and they pay without logging into anything. You can also use a card reader in person or accept payments over the phone. A website is optional. Most processors let you generate links and manage payments from a mobile app alone.