Paying rent by credit card

zaralondon

I was just looking at an estate agent's website and I found this:

The deposit and first month’s rent need to be paid when signing a tenancy agreement. Cheques must be cleared (which takes approximately 7 days, on the other hand, bank drafts take 1 day) before moving in. Unfortunately credit cards are not an acceptable payment method. Applicants should be aware of that and make necessary arrangements.

Is this the case with all estate agents when renting? And does anyone know what the reason is?

I am guessing that where the flat is not managed by th eagent the landlord wants a direct transfer, but when the flat is managed and the payment is going to the agent surely it should be okay to accept credit card?

It's been a while since last renting but when I did the agent was okay with credit card for deposit (and even rent)...

Anyone fill me in on this?
Thanks guys!

moromir

It is expensive to accept credit card payments, the equipment to do it is rented and the charges for each payment are quite high.

By the very nature of using a credit card and borrowing such a large amount of money it suggets you are not financially sound which isn't comforting for the landlord, especially on a new tenancy.

Possible charge back implications.

theartfullodger

Agree with moromir but the issue is probably this one I think..

Cheques & credit cards can be disputed and then the payments clawed back by banks.... That is why many landlords (including moi..)& agents insist on cash (or similar) for the initial rent/deposit. The at least LL/LA knows they are starting the tenancy with real money taht won't subsequently disappear...

pararct

The charges to the vendor on some credit card payments can be up to 2.7% of the transaction.

Debit cards by comparison are 35p - 50p on the transaction.

Deposits can run into quite a tidy sum.

As for clawbacks provided the purchaser enters his/her pin at the time of the transaction (card-holder present) then this greatly lessens the chances of this occurring.

Surprised they want a day for Bank Drafts though these are as good as cash.

PasturesNew

I just handed over my debit card when I rented, to pay: 1.5 months' deposit, 6 months' rent up front.

But then I don't have a credit card.

housebuyer_abc

pararct wrote: »

Surprised they want a day for Bank Drafts though these are as good as cash.

Not quite - you can go back to the bank before it's been deposited and say it has been stolen, the bank will then put a stop on it. So as a draft will take a day for the letting agent to walk to the bank to deposit that is why they say it takes a day.

zaralondon

Ok, so following my enquiries today, it would appear that the vast majority of agents want what they call 'move in money/monies' by cash/debit card/bankers draft i.e. cash basically.

From what I can see, the only way you can by credit card is if they are a big agency who also act as the landlord (kind of thing if that makes sense). I stand corrected if anyone wants to add. However I have a feeling it has a lot to do with credit card company fees perhaps.

PasturesNew

And worrying that a tenant's got no actual money to pay the rent with.

zaralondon

True.. only if you pass the other checks then there shouldn't be much of problem.

I especially don't get it if you offer to pay a whole 6 months plus deposit by credit card.