Rent-tech platforms sidestepping credit card surcharge ban with new fees and paid ‘memberships’
Summary
Online property management platforms in Australia are using new fees or “membership” charges to avoid costs from a ban on credit card surcharges for rent payments. Some platforms have stopped accepting direct card payments and introduced paid memberships that include service fees, passing these costs on to tenants or landlords.Key Facts
- A ban on credit card surcharges for rent payments started on 1 October in Australia.
- Platforms like OurProperty have stopped accepting direct card payments and now use a service called Pay4it with a 1.95% fee.
- These fees are often passed on to renters or landlords; property managers do not absorb the cost.
- In Victoria, rental providers are banned from charging fees for rent payments, so OurProperty introduced a paid “platinum” membership costing 1.95% of monthly rent to waive card fees.
- Tenants in Victoria receive a default “silver” membership, requiring agencies to cover some payment fees.
- Some tenants find the new membership fees and complicated payment options inconvenient and costly.
- Other platforms, like Ailo, have also switched from surcharges to paid memberships, while the biggest platform, DEFT, no longer accepts cards but allows other payment methods like BPAY and direct debit.
- About 1.2 million rent payments each month are made through these platforms in Australia.
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