The Green Sheet Online Edition
December 28, 2009 • Issue 09:12:02
Payments for property management
In speaking with credit card acquirers regarding ISO programs, we noticed that some brought up The Green Sheet as an informational resource. We're currently considering all of our options for ISO/MSP to enter the niche market of online processing of rental payments (multifamily property management).
With so many options, alongside the revenue share programs, we're looking for help. Do you have any suggestions of consultants we can speak with to further educate ourselves to make an informed decision?
Real ID Inc.
In considering your request, a member of our Advisory Board came to mind: Matt Golis. As Chief Executive Officer of YapStone Inc. (the parent company of RentPayment), he knows all the ins and outs of the payment processing requirements for the multifamily property management sphere. We asked Matt to provide some insight.
Following is his response:
After 10 years focused in the property management industry, I have found that providing a robust technology solution is critical to differentiating yourself as a processor.
In contrast to other industries where a physical terminal, Internet gateway or other POS solution is sufficient, the multifamily industry demands technology that is superior to its historic method of accepting most payments (check collection at the leasing office or lockbox).
Technology requirements include the following:
- Accounting software integration, with the capability of both importing the current balances due in real-time and exporting payments and posting them real-time to the accounting ledger
- Online payment interface that can be an extension of the corporate or property-level Web site, supporting both credit cards and automated clearing house payments
- Remote deposit capture to make all physical payments (personal checks, money orders and business checks) electronic payments that can be accessed online and posted directly to the ledger through the accounting software integration
- Mobile payment support for renters seeking the convenience of making payments by cell phone in addition to online and by traditional phone
ISO/MSPs that are considering the rental property market need to be well versed in these various technologies. Due to the complexities around various property management software packages, the sales cycle can be longer, but the barriers to entry for competition are higher once the client is implemented (similar to other bill payment verticals like government and utilities).
Most multifamily property management software vendors do not use traditional credit card gateways, as clients have traditionally used third-party processors that could provide a better solution.
In summary, a very tech-savvy ISO or merchant level salesperson will see there is opportunity but will also understand the many nuances around the business rules of property management require a significant investment of both time and money.
We hope you find this information beneficial, Sam; please let us know if we can be of further assistance. And, Matt, thank you for taking the time to provide this most educational response.
Thank you, readers
The Green Sheet has been blessed with another full year of intriguing questions and commentary to fill our Forum issue after issue. We hope the information provided herein has been helpful not only to those who have contributed to this page, but also to the many readers who haven't had the time to jot down their thoughts.
While we tend to receive more questions than opinions for this page (and we are delighted to provide answers), we will be happy to receive all respectful, thought-provoking commentary that will help improve the industry and assist ISOs and merchant level salespeople in developing their careers.
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From all of us at The Green Sheet Inc.
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