Can You Pay Rent With a Credit Card in California?

Paying rent with a credit card has emerged as an option for many renters, moving beyond traditional methods like checks or direct bank transfers. While not universally available, various mechanisms now exist that facilitate these transactions. Understanding these methods and their associated costs can provide insight into managing a significant monthly expense.

Ways to Pay Rent with a Credit Card

Renters seeking to pay with a credit card often encounter several pathways. Some larger property management companies or landlords may offer direct payment through their online portals. This integrated system allows the tenant to enter credit card details directly into the landlord’s payment platform.

When a landlord does not offer direct credit card payments, third-party services provide an intermediary solution. Platforms such as Plastiq or PlacePay act as a bridge, accepting a credit card payment from the tenant. These services then process the payment and send the funds to the landlord, often via electronic bank transfer or physical check.

An alternative approach involves specialized credit card programs designed to facilitate rent payments. Some credit card issuers offer their own systems where rent can be paid through their dedicated apps or platforms. These programs might send a payment directly to the landlord, even if the landlord is not part of their network, by generating a check on the tenant’s behalf.

Understanding Transaction Fees

Utilizing a credit card for rent payments involves additional financial costs, primarily transaction or convenience fees. These fees are charged to cover processing expenses incurred by the payment facilitator or landlord. The most common charge is a percentage-based service fee, which ranges from 2.5% to 3.5% of the total rent amount.

For example, a $1,500 rent payment with a 2.9% fee would incur an additional $43.50 charge. These fees can significantly increase the actual cost of rent over time, as they are applied to each monthly transaction. Some services may also apply a small flat fee in addition to, or instead of, a percentage.

These charges are passed on to the tenant who chooses to pay with a credit card. Landlords and property managers implement these convenience fees to offset the costs they would otherwise absorb from credit card processing networks. In contrast, traditional payment methods like checks or direct bank transfers (ACH) involve minimal to no fees for the tenant.

Specifics for California Renters

California renters navigating credit card payments must consider state regulations concerning payment methods and surcharges. Under California Civil Code Section 1947.3, landlords are required to accept at least one form of payment that is neither cash nor electronic funds transfer, such as a personal check. This means that even if a landlord offers an electronic payment portal, they cannot mandate that tenants pay exclusively through electronic means.

Regarding fees, California law has evolved, particularly with Senate Bill 478, also known as the “Honest Pricing Law,” effective July 1, 2024. This legislation aims to prevent “drip pricing” by requiring businesses, including landlords, to include all mandatory fees in their advertised or listed prices upfront. This prohibits adding a separate surcharge at checkout for credit card payments if it was not included in the initial advertised price.

While direct surcharging at the point of transaction is restricted by the new law, landlords can still account for credit card processing costs by building them into their overall pricing structure. They also retain the ability to offer discounts for payments made by cash, check, or debit card. A landlord in California can still pass on the cost of credit card processing, provided it is transparently incorporated into the total rent amount or presented as a convenience fee.