What a payment gateway does and why homeowners and landlords need one
A payment gateway is the tool that lets you collect rent, security deposits, maintenance fees, or other property-related payments online instead of waiting for checks or cash. It sits between your tenant or buyer and your bank account, encrypting their card or bank information, verifying the funds exist, and moving the money to you.
If you manage rental property, collect HOA fees, run a short-term rental, or sell a home and need to hold earnest money, a payment gateway removes the friction of in-person payment collection. Tenants can pay from their phone. You get the money faster — usually within one to three business days instead of waiting for a check to clear. You also have a record of every transaction, which matters for accounting and disputes.
The gateway itself is not a bank account. It is a service that connects to your existing bank account and deposits funds there. You choose which gateway to use, set it up with your bank, and then embed it on a website, send a payment link to tenants, or use it through property management software you already subscribe to.
Key Takeaways
- A payment gateway connects your tenant's payment method to your bank account, encrypts their information, and deposits funds within one to three business days.
- Most gateways charge a per-transaction fee (typically 2 to 3 percent plus 30 cents) or a monthly subscription, so compare costs based on your payment volume.
- Popular options for landlords and property managers include Stripe, Square, PayPal, and property-specific platforms like Rent Manager or AppFolio.
- You will need a business bank account, an Employer Identification Number (EIN) or Social Security Number, and basic business information to set up a gateway.
- Payment gateways are PCI-DSS compliant, meaning they meet security standards that protect both you and your tenants from fraud and data theft.
Common payment gateway options for property owners
Stripe is one of the most flexible choices. It works with websites, invoicing tools, and property management software. Stripe charges 2.9 percent plus 30 cents per transaction for card payments, or 1 percent plus 30 cents for bank transfers. There is no monthly fee, so you only pay when you receive money. Setup takes about 15 minutes if you have your bank account and EIN ready.
Square offers similar pricing (2.6 percent plus 10 cents for cards) and includes a free invoicing tool. Square also lets you accept payments in person with a card reader if you collect deposits or fees face-to-face. Like Stripe, you pay per transaction with no subscription.
PayPal charges 2.2 percent plus 30 cents for standard transactions and integrates with many property management platforms. PayPal is familiar to many tenants, which can reduce friction. The downside is that PayPal holds funds for longer in some cases and has stricter policies around rental payments than Stripe or Square.
If you use property management software like AppFolio, Rent Manager, or Buildium, those platforms often have built-in payment gateways or preferred partners. Using the software's native gateway means tenants pay through the same portal where they submit maintenance requests, which is convenient. The trade-off is that you may have fewer options to shop around on fees.
How to set up a payment gateway step by step
Start by choosing your gateway based on your volume and needs. If you collect rent from five units monthly, per-transaction pricing (Stripe or Square) will cost you less than a monthly subscription. If you collect from 50 units, a subscription model might be cheaper.
Next, gather the information you will need: your business bank account number and routing number, your EIN or Social Security Number, your business address, and a government-issued ID. Most gateways ask for this during signup to verify your identity and comply with anti-money-laundering rules.
Create an account on the gateway's website or app. The process is usually a form with your business details, banking information, and a few security questions. The gateway will verify your bank account — this typically involves depositing two small amounts (under $1 each) into your account and asking you to confirm the amounts. This takes one to two business days.
Once verified, you can generate a payment link, embed a payment form on your website, or connect the gateway to your property management software. Test the payment flow with a small transaction before asking tenants to use it. Most gateways offer a sandbox or test mode for this.
Fees and what they mean for your bottom line
Transaction fees are the most common cost. A 2.9 percent plus 30 cents fee means that on a $1,500 rent payment, you pay $44.85 to the gateway. Over a year with 12 payments, that is $538 per unit. For a 10-unit building, that is $5,380 annually in gateway fees alone.
Some gateways offer lower rates if you process a high volume or if you accept bank transfers instead of cards. Bank transfers typically cost 1 percent or less because they are cheaper for the gateway to process. You can encourage tenants to use bank transfers by offering a small discount or by charging a fee for card payments.
Monthly subscription models charge a flat fee ($25 to $100 per month) regardless of volume. These make sense if you collect payments frequently or from many units. Calculate your expected annual cost both ways before committing.
Some gateways also charge setup fees, monthly minimums, or fees for features like invoicing or reporting. Read the pricing page carefully and ask the gateway's support team to estimate your annual cost based on your expected volume.
Security and compliance when accepting online payments
Payment gateways are required to meet PCI-DSS (Payment Card Industry Data Security Standard) compliance. This means they encrypt card data, use secure servers, and audit their systems regularly. You do not store card numbers on your own computer or server — the gateway handles that. This protects both you and your tenants from fraud.
When you set up a gateway, you agree to their terms of service, which include rules about what you can and cannot do with payment data. For example, you cannot store a tenant's card number after a transaction or use it to charge them without permission. The gateway handles recurring charges (like monthly rent) on your behalf.
Use a strong password for your gateway account and enable two-factor authentication if the gateway offers it. If your account is compromised, a thief could redirect payments or access transaction history. Treat your gateway login the same way you treat your bank login.
Keep records of all transactions for tax and accounting purposes. Most gateways provide downloadable reports and integrate with accounting software like QuickBooks, which makes reconciliation easier.
Integrating a payment gateway with property management software
If you already use property management software, check whether it has a built-in gateway or a list of approved partners. AppFolio, for example, partners with Stripe and offers integrated payments. Buildium works with multiple gateways. Rent Manager has its own payment processor.
The advantage of using your software's native gateway is that tenants see one login, one dashboard, and one place to pay rent or submit maintenance requests. Rent history and payment status sync automatically. You do not have to log into two separate accounts.
If your software does not have a built-in gateway, you can still use an external one like Stripe or Square and manually record payments in your software, or use an integration tool like Zapier to sync data between them. This requires more manual work but gives you more control over fees and features.
What to do if a payment fails or a tenant disputes a charge
Payment failures happen for many reasons: insufficient funds, expired card, incorrect address on file, or a card flagged for fraud. Most gateways notify you immediately and let you retry the payment. Send your tenant a message right away so they know the payment did not go through and can fix it.
If a tenant claims they were charged twice or charged the wrong amount, the gateway provides a transaction record with a timestamp, amount, and confirmation number. Use this to investigate. If the charge was an error on your end, most gateways let you issue a refund within a set time window (usually 30 to 90 days).
If a tenant disputes a charge with their bank or credit card company, that is called a chargeback. The gateway will notify you and ask for proof that the charge was valid — typically a signed lease, payment request, or communication from the tenant authorizing the charge. Keep records of all payment requests and tenant communications to defend against chargebacks.
Frequently Asked Questions
Can I charge tenants a fee for paying with a credit card?
Yes, in most states. You can pass the gateway fee to the tenant or charge a flat processing fee. Some landlords charge 2 to 3 percent extra for card payments and offer a discount for bank transfers. Check your state's rental laws — a few states restrict how much you can charge. Always disclose the fee upfront in your lease or payment instructions.
What happens if my gateway account is hacked?
The gateway is responsible for securing the payment data, not you. If the gateway is breached, they must notify affected customers and cover fraud losses. Your responsibility is to keep your login credentials secure and monitor your account for unauthorized activity. Enable two-factor authentication and change your password regularly.
Do I need a separate business bank account to use a payment gateway?
Most gateways require a business bank account or a personal account in your business name. Using a personal account for rental income can complicate taxes and make it harder to separate business and personal finances. A business account is inexpensive to open and makes accounting much simpler.
How long does it take to receive money after a tenant pays?
Most gateways deposit funds within one to three business days. Some offer next-day deposits for a higher fee. Weekends and holidays can delay deposits. Check the gateway's settlement schedule before signing up if you need money quickly.
Can I use a payment gateway for security deposits?
Yes. The gateway processes the payment the same way it does rent. However, you will need to track the deposit separately in your accounting because security deposits are not income — they are a liability until the tenant moves out. Most property management software has a field for security deposits that integrates with the gateway.