Important - This guide provides a basic overview on how to set-up bank accounts to start collecting electronic or cash payments. Click the blue links for more information or instructions on any of the topics. This guide is only for you, if:
- You are interested in using RentMoola and want to see what's involved in setting up your bank accounts.
- You are now adding your buildings to RentMoola (i.e. property information and bank account information have been submitted).
- Collecting Rent Payments
- Payment Process
- Electronic Fund Transfers
- Processing Requirements
Collecting Rent Payments
RentMoola works with two payment processors to provide electronic payments: Vantiv and PaySafe Group. When you are ready to set-up your buildings with RentMoola, we create accounts with our processors which includes merchant accounts. Each processor works with banks to set-up your merchant account where funds will be deposited before they are transferred to the Property Manager’s bank account.
RentMoola also works with PayNearMe in the USA to collect rent payments in cash at 7-Eleven locations. This is only available in certain markets in the USA for an additional fee per bank account. To pay in cash, residents must login to RentMoola to download a barcode which is used at 7-Eleven locations to make the payment. For more information on how this works, view this video.
To set up your buildings and bank account, there are several requirements including void checks, personal identifiable information for your signing authorities. For more information on this, please see below under the processing requirements section.
Credit Card Payments
When a credit card payment is made, RentMoola automatically verifies the resident has funds available before the payment is finalized. Credit card payments are guaranteed for this reason. It takes up to 3 business days for credit card payments to arrive in the property manager's bank account.
Residents can report fraudulent transactions to their credit card issuer and be automatically refunded. These are called chargebacks and occur rarely with rent payment. If resident has a chargeback, they have effectively not paid their rent. Property managers can work with the credit card company to reverse the chargeback but it will likely be easier to reach out to the resident for a new payment.
eCheque payments are also known as Automated Clearing House (ACH), pre-authorised debit (PAD), or direct debit transactions. Residents can setup this payment method by adding the account number and routing number of a checking bank account. It takes 2 business days for eCheque funds to be deposited in the property manager's bank account.
eCheque payments take up to 5 business days to be withdrawn from the tenant's bank account. RentMoola remits funds to the property manager within 2 business days. If the tenant has insufficient funds in their bank account, RentMoola will automatically reverse the funds deposited into the property manager's account. The tenant will also automatically be charged a Non-Sufficient Funds (NSF) fee by their bank.
Electronic transactions may be refunded up to 90 days after the payment is made.
To process your rent payments, RentMoola works with various partners to debit funds from your resident's account and credit them to property manager's account. The process diagram below is quite standard in the payment industry but hopefully gives you some understanding of the payment lifecycle.
For electronic payments, residents must login to RentMoola and select their payment method. Once they make a payment, this information is remitted to our processor to debit the funds from the credit card companies or the tenant's bank account. These funds are then deposited to a merchant account before being transferred to the property manager's bank account.
For cash payments, the resident makes a cash payment at a 7-Eleven location which is then transferred to PayNearMe into an electronic payment. These funds are then deposited into the property manager's bank account.
Electronic Funds Transfers
Once a resident makes a payment, you will receive the funds in your bank account. This processing time can vary depending on the payment method and the jurisdiction where the payment was made. It takes up to 3 business days for credit card payments and 2 business days for eChecks to be deposited into your bank account. Each day's payments are batched before being sent through the EFT process.
When you review your bank account, you will see deposits and withdrawals with the description of RentMoola, Paysafe Merchant Services, and AMEX.
Canada Batch Cut-Off Times
United States Batch Cut-Off Times
To set up payment processing for your building, RentMoola works with our processors to create new merchant accounts. All funds are remitted to these merchant accounts before they are transferred to your bank account.
Setting up a merchant account is similar to setting up a regular bank account. These are done through the banks and require both information about your business and your signing officer. RentMoola collects all necessary business information in our application process including the following:
- Company name
- Tax ID
For the signing officer, the banks typically require the following information:
- Full name
- Date of birth
- Social security number or driver's license number
- Passport number (if the signing officer is a foreigner)
These requirements are part of the standard bank procedures for opening a business account as per the US Financial Crimes Enforcement Network's (FinCEN) new customer due diligence rules.
Setting up the bank account which the funds must finally be transferred to requires at a minimum a void check to confirm the routing number (institution and transit numbers in Canada) and the bank account number. It also important that this account allow for both deposits and withdrawals as it will be used for remitting payments and processing refunds.
If the name of the account holder on the void check does not match the name of your company, you will be asked for additional information. There are typically two scenarios in this circumstance:
- You manage the bank account but the account is listed under a different name. In this scenario, you will need to provide a letter from your bank stating you own the account in question. See below for more information on this requirement.
- The bank is owned and managed by a different company. In this scenario, you will need to provide a copy of your management agreement or contract staying that you are managing this property and the bank account. See below for more information on this requirement.
Bank letters are required in the case the name on the void check is different than the legal entity name. A sample bank letter is attached below as a reference. Bank Letters must include the following:
- Be typed on bank letterhead
- Stamped or signed by a bank representative
- Name of the PM company which should match the Entity Name in RentMoola
- Name of the building or property owner on the void check
- Bank account details (account name, routing #, and account #)
Management agreements are required in the case that the Property Manager cannot provide a bank letter because they bank account is managed by the building owner.
- This will only work if the name on the void check is the name of the Building Owner’s company
- Agreements must be made between the Property Manager and Building Owner
- Agreements must be signed, dated and specify the duration of the agreement