Updated February 2024
In a previous blog post, I addressed the growing demand from vacationers to be able to pay for their rental homes online rather than by mailing a check. To meet this demand, many homeowners realize they should provide their tenants with an online payment option but want to do so without risking security, reliability, or revenue.
What are "online or digital payments"?
Before we look at different options available to you, let’s define what an online, digital, or electronic payment is: An electronic payment is any kind of non-cash payment that doesn't involve a paper check. Methods of electronic payments include credit cards, debit cards, the ACH (Automated Clearing House) network, and others.
Online vs. a mobile app
Remember that some payment options are provided by setting up an online account, i.e., through a website like PayPal. Others, such as Venmo, Apple Pay, and Cash App are only accessed on mobile devices. Online accounts may also be accessed through a mobile device, and in some cases, they also have apps to make it easier for you.
Benefits of offering more than one option
It’s also important to note that not all vacationers are going to be familiar with, or set up to use, the same platform or app that you subscribe to. We therefore suggest that you perhaps offer at least two different options, maybe more, especially if they are free and easy to use.
Please note that we are not financial experts, and the digital payment industry is growing and changing rapidly. The goal of this post is to make you aware of some different options that allow you to accept online payments without significant risk or cost to you. But you must do a little research yourself to make sure whatever method you choose is a good fit for you and something your guests would like to use, too.
What are some current online payment options?
Electronic checks (or eChecks) are an electronic payment withdrawn from a customer’s checking account and transferred over the ACH network to another account. They serve the same function as a physical check. They process faster and there are no fees charged to either of you. To make a payment with an eCheck, the following information is required:
- Your bank routing number
- Your bank account number
- The name on your bank account
Zelle
This service is tied to some leading banks including Bank of America, Capital One, Wells Fargo, as well as local bank, Cape Cod 5. All a user needs is their bank's mobile app, online banking, or the Zelle app in order to send and receive money. Zelle can also take payments via email and phone, thereby avoiding having to share bank account info.
- Sending and receiving payments typically happens within minutes.
- Debit cards or checking and savings accounts can be used, but not credit cards.
For anyone reluctant to offer their banking info to a third-party app, Zelle is a good, safe alternative. Check with your financial institution to see what fees may apply.
Google Pay
As the biggest online tech player in the world, Google naturally has its own payment solution, and it’s a simple and free way to accept payments.
Advantages of Google Pay
- Receive money from anyone. They don’t need to have the Wallet app installed, just an email address or phone number. And you just need a Google account and debit card to receive funds.
- Automatically transfers your received payments into your bank.
- Vacationers can pay through Google Wallet’s website or through a mobile app on their smartphone.
Visit Google Pay to see their terms, conditions, limits, and fees.