Online - Electronic Payment Solutions for Community Associations
Alex Dunn
While getting out the checkbook, hand-writing a paper check and dropping the stamped envelope in the mail box is still common, most homeowners are now comfortable using the technology available to pay their assessments online. Given the technology available at a homeowner’s finger tips (literally) through the use of the computers, tablets and smart phones, here are the five methods most often used by homeowners to pay their association assessments:
1. The homeowner’s personal banking “Online Bill” service: This is probably the most common way for a homeowner to pay their association assessments. By setting up and paying their assessments through their own personal banking online bill-pay service, the homeowner retains control and decides when the assessments payment is sent to their Property Management Company or Association. Re-occurring payment of assessments can be set up for a specific period of time and is often free to the homeowner.
However, the homeowner must keep banking information (i.e., checking account number, etc.) updated and current, should they change banks or move. If an input error is made, this can cause late payment fees, overdrafts or other delays in their payment being processed. Also, since most online bill pay programs require a date range to be selected, the homeowner must remember when this will expire.
Finally, even though their assessments payment is often removed immediately from the homeowner’s bank account, Online bill payments are not “instantly” sent to their Property Management Company. More often, the funds are sent via paper check using a third party service provider that handles bill-pay service for the homeowner’s bank. So, while the funds appear to have left the account “electronically,” the payment is actually a paper check being mailed. This then causes delays in the payment being received by the Management Company and frustration by the homeowner, who thinks that they sent the payment in time to avoid a late payment fee.
2. Using credit cards and debits cards via a secure website. Some homeowners elect to pay their assessments online using a major credit card or debit card through a secure website managed by their Association, Property Management Company or their banking partner. There can be advantages (and disadvantages) to this payment method. Again, the homeowner retains control and decides when the assessments payment is sent. If a homeowner has multiple cards or accounts, they can choose which one to use for making the assessments payment. The cardholder can often benefit from earning reward points, airline miles or cash back incentives, if available.
Of course, there are several disadvantages to using a credit or debit card as well. Convenience fees and interest rates charged by a major credit or debit card are often very high and can offset any benefits earned, like rewards points or airline
28 Community Associations Journal | July 2013
miles. Also, accumulating excessive revolving credit card debt is always a danger and not recommended. The homeowner must remember also which specific card is linked to the assessments payment and keep tabs on the expiration date or other information to avoid rejected payments.
bank account. Again, this payment method allows the homeowner to retain control, decide which account to make the assessments payment from and when it is sent. The cost (or convenience fee) may be lower than with using a credit or debit card. However, major credit card companies typically require that all payment methods offered within the same medium used (i.e. internet) have the same convenience fee to stay in compliance.
There can be certain draw backs to using online “e-check” to pay a homeowner’s assessments. First, the homeowner must remember to log in to the website to make the one-time payment via “e-check,” if a re-occurring payment method is not selected or offered. Also, some homeowners are not comfortable keying in their bank account information on a website, due to the possibility of fraud or identity theft.
There are definite advantages to the homeowner letting their Association or Property Management Company auto-debit their assessments on a regular schedule. Auto-debiting (ACH) authorization is easy to set up. And, like a mortgage or car payment, a re-occurring payment schedule can be an easy, free method to budget around. In addition, it provides more seamless accounting, auditing controls and accountability, which benefits the homeowner, Association and/or Property Management Company. Of course, if the homeowner moves or changes personal banking relationships, they should notify their Association or Property Management Company to update the auto-debit (ACH) authorization information.
5. Mobile Banking is on the rise! With smart phones and tablets being used more and more, the ability is there to monitor a homeowner and/or the Association’s account activity, deposit a check by taking a picture of it and perform other banking activities “on the go.” While not everyone’s “cup of tea,” this technology is growing and being used by more individuals every day.
In conclusion, many homeowners are now choosing to pay their Association assessments electronically, along with the rest of their regular bills because is often faster, cheaper, safer and can enable them to automate the entire process. Now, where IS my checkbook?
Special thanks to Lori Rasmussen and Kellene Richards at Park 52 Association Management for their input for this article.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36