How to Set Up Tenants to Pay Rent Online

1. Sign up for a Paypal account, which is free, or a regular merchant account, which will require a deposit and monthly fees.
2. Decide if you want to accept credit cards or e-checks, or a combination of both. Many landlords prefer to receive rent payments from a drafted checking account as opposed to a credit card payment, which could be disputed and charged back. Select your desired payment options on your merchant account application.
3. Set up a small, one-page website with a web hosting service that offers a free shopping cart. This is the website that tenants will visit to make rent payments online. Once you have your credit card or e-check merchant details, you will enter your merchant account number into the shopping cart software to set up payment capabilities. (Paypal has a built in shopping cart system that is very easy to use--you do not need a merchant account number; only an email address and bank account.)
4. Include information about your real estate company or contact details for renters (your mailing address, name, phone number, and email address) on the web page. Create a large, conspicuous link on the page that directs tenants to 'Pay Rent Here.' (This link will be provided by your shopping cart service or Paypal.)
5. Direct each tenant to enter his name and unit number with the online payment. There is an optional comment text box that is displayed on most online shopping-cart systems where this information can be typed. Once the renter enters payment details--credit card or e-check information--and clicks 'Submit,' the rent payment will be sent to your merchant account processor and eventually to your bank account.