ConchoP
Posts: 208
Posts: 208
Posted:
Are governing documents do not cover this: Can the HOA charge a convenience fee for those wanting to pay Via Credit Card?
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
Credit Card Fees
Started by ConchoP • 9 replies • 1125 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
RichardP13
Posts: 3,836
Posts: 3,836
Posted:
It isn't the HOA charging the fee, it is the provider providing the service.
BillH10
Posts: 1,215
Posts: 1,215
Posted:
Concho, I believe the entity directly receiving payment via credit card (retail establishment, restaurant, etc.) is prohibited from charging a surcharge for the use of the card in Texas. For example: your assessment is $200.00 if paying with a check or cash, $210.00 if using a credit card. No can do under Texas law.
Richard however is correct. The payment processor used by the HOA can apply a surcharge for use of the credit card. They keep $10.00 and send $200.00 to the Association. The net effect is the same regarding what is charged to the credit card, but you the HOA cannot apply a credit card transaction charge.
Richard however is correct. The payment processor used by the HOA can apply a surcharge for use of the credit card. They keep $10.00 and send $200.00 to the Association. The net effect is the same regarding what is charged to the credit card, but you the HOA cannot apply a credit card transaction charge.
ConchoP
Posts: 208
Posts: 208
Posted:
BillH10
IF I understand correctly we can only apply a surcharge of what the credit card company is charging us.
So we would invoice Annual Fee is $75 + $2.98 surcharge for Credit cards- correct?
IF I understand correctly we can only apply a surcharge of what the credit card company is charging us.
So we would invoice Annual Fee is $75 + $2.98 surcharge for Credit cards- correct?
DouglasK1
Posts: 2,038
Posts: 2,038
Posted:
Quote:
Posted By ConchoP on 10/03/2018 1:37 PM
BillH10
IF I understand correctly we can only apply a surcharge of what the credit card company is charging us.
So we would invoice Annual Fee is $75 + $2.98 surcharge for Credit cards- correct?
BillH10
IF I understand correctly we can only apply a surcharge of what the credit card company is charging us.
So we would invoice Annual Fee is $75 + $2.98 surcharge for Credit cards- correct?
How are you processing credit cards? Do you have a merchant account or are you going through a third party, like Paypal?
Escaped former treasurer and director of a self managed association.
BillH10
Posts: 1,215
Posts: 1,215
Posted:
Concho, I don't know the details of what is allowed and what is not. My knowledge is based on information provided in orientation briefings at small business seminars and the like, and what friends who own or manage retail establishments have told me.
I know this subject is not in the Texas Property Code. You may wish to spend some time on the website for the Texas Secretary of State or Comptroller.
I know this subject is not in the Texas Property Code. You may wish to spend some time on the website for the Texas Secretary of State or Comptroller.
BarbaraT1
Posts: 817
Posts: 817
Posted:
Quote:
Posted By ConchoP on 10/03/2018 1:37 PM
BillH10
IF I understand correctly we can only apply a surcharge of what the credit card company is charging us.
So we would invoice Annual Fee is $75 + $2.98 surcharge for Credit cards- correct?
BillH10
IF I understand correctly we can only apply a surcharge of what the credit card company is charging us.
So we would invoice Annual Fee is $75 + $2.98 surcharge for Credit cards- correct?
No, you invoice the annual assessment at $75, and your third party payment processor adds the fee, if the members pay that way.
JohnC46
Posts: 14,230
Posts: 14,230
Posted:
Concho
HOA's do not directly accept credit/debit card transactions. They use a credit card processing company/bank who will charge a fee for such use.
HOA's do not directly accept credit/debit card transactions. They use a credit card processing company/bank who will charge a fee for such use.
RoyalpitA
Posts: 194
Posts: 194
Posted:
Quote:
Posted By JohnC46 on 10/04/2018 7:13 PM
Concho
HOA's do not directly accept credit/debit card transactions. They use a credit card processing company/bank who will charge a fee for such use.
Concho
HOA's do not directly accept credit/debit card transactions. They use a credit card processing company/bank who will charge a fee for such use.
Precisely
The HOA has a 'fee'.
The HO can pay it any way they want including an INDEPENDANT 'processor'.
DouglasK1
Posts: 2,038
Posts: 2,038
Posted:
The primary restriction on charging fees for use of a credit card is in the merchant agreement between the credit card companies and the people with merchant accounts. There are some loopholes, and merchants or processors sometimes get around this by presenting it as a cash discount rather than a credit card surcharge.
In any case, that's between the merchant or processor and the card companies so would not be the the concern of the association. It's also possible that some jurisdictions have laws against surcharges, but I'm not aware of any.
In any case, that's between the merchant or processor and the card companies so would not be the the concern of the association. It's also possible that some jurisdictions have laws against surcharges, but I'm not aware of any.
Escaped former treasurer and director of a self managed association.
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here