Credit Cards - Property Managers Should Review Benefits And Costs

Note: This information is for general reading only and property managers should discuss their situation and requirements with their financial advisor and merchant.

Credit cards present an easy method for collecting payment from Visitors.

However property managers must carefully consider the pros and cons of accepting credit cards before getting started.

Benefits of accepting Credit Cards:

> accept payments from international visitors
> receive clearance typically overnight of funds processed
> corporate clients often prefer this method for accounting reasons
> card can also be used for a security deposit or for subsequent transactions

Costs of accepting Credit Cards:

Typically, the cost of providing a credit card service involves set up, ongoing fees per transaction as well as a percentage charge.

While there may be "cheap" credit card providers in the market, its worth checking that they have the appropriate security, service and technology to meet your needs.

> merchant service charges can range from 1-5% plus gst
> merchant monthly fees can range from $5 - 25 per month
> payment gateways may charge $0.25 - $2 per transaction

Also consider the time reconciling batch payments from the bank and dealing with queries.

Risks of accepting Credit Cards:

There are significant risks relating to processing credit cards. Consider writing down the risks that your individual operation may face.

> Disputes - the visitor may dispute the transaction & request a charge back
> Fraud - a person may steal & misuse a card, or present fake ID on arrival
> Data theft - criminals may seek out operators who hold unencrypted credit cards in paper or electronic form

 
Tips for Accepting Credit Cards:

Here are www.rentahome.com.au’s top 10 tips for credit cards:

1. Try not to take credit card details over the phone, request a fax
2. Check the CCV digits
3. Insist on viewing and imprinting the card processed on arrival and photo ID
4. Avoid short last minute bookings which arrive the same day
5. Check the visitor name matches the name on the card
6. Be wary of visitors that split payments on multiple cards
7. Be wary of a card that is rejected due to insufficient funds
8. Destroy card details following the stay or store in a secure environment
9. Ensure that your insurance covers fraud or theft from credit cards
10. Ask your bank and card providers to send you their policy documents and safety tips

We recommend that all Property Managers prepare a credit card policy and ensure all staff understand the policy.

If you are uncomfortable with the visitor and card provided, call the authorisation centre and if in doubt request cash payment or reject the booking.

There are alternative payment methods however these might suit you. A funds transfer is most secure from a Property Manager's perspective. Online payment solutions such as PayPal can be time consuming and difficult for customers to comprehend and access.

There are significant developments and requirements in the payment card industry www.pcicomplianceguide.org.

Booking services like www.rent-a-home.com.au offer a credit card payment facility and have the necessary policy and checks in place to minimise the risks.

Please contact our office if you require assistance or would like to discuss our service.