Options for Paying Dues Electronically

Started by JeffB21 • 12 replies • 290 views

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JeffB21 (Washington)
Posts: 22

Posted:

We're a small HOA (53 members) and dues are paid annually.

Our members pay with checks they mail in.

About 15% use their bank's bill pay feature but these too are mailed in.

We'd like to offer our membership a way to pay electrically.

Something simple. Something easy on the bank account.

Recommendations, please.

Thanks

Jeff

SheliaH (Indiana)
Posts: 6,964

Posted:

Start with the association's bank - there should be something they can offer you, like automatic deduction. Even a payment app like Zelle for Business might be usable - ask your bank if this could be an option.

When I began using my bank's bill pay option, they would also send checks, but today, all you need is the name and address of the creditor and your account number. You dictate when the payment should be withdrawn from your account and it usually goes through that day or within 24 hours. It could be those homeowners who use their bank's bill pay haven't checked to see if there's an updated way to do it.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

DeanJ
Posts: 1,786

Posted:

I would first inquire at your current bank. If they are unable to facilitate your needs, there are banks that specialize in HOA banking services with online deposit service.

Most will have zero cost options for mailed checks and direct deposit options + fee options for debit cards and credits cards. The owners login, make a payment and receive a conformation email.

MarshallT (New York)
Posts: 414

Posted:

Agreed. See if the association's bank can make it possible for owners to make direct deposits or something similar. Since the community is so small and fees are only paid annually, it probably wouldn't be worth it to pay for accounting software.

LetA (Nevada)
Posts: 2,679

Posted:

Find a bank that caters to HOA's. Those banks will have an online assessment pay portal that will accept
each members regular assessment payments whether they are monthly, quarterly or yearly. You get a regular statement
of who paid.

JeffB21 (Washington)
Posts: 22

Posted:

Thanks everyone for your replies.

If I didn't mention this before... we're a small HOA of 53 members and collect dues annually.

Like many we're dealing with stolen mail. The Arrow Key is "out in the wild."

I posted my question hoping there are options we could offer our members for paying their dues without having to write a check.

Ideally there would be solutions out there that are free, readily available and easy to implement beyond the standard bill-pay option.

Such a solution doesn't appear to exist. So it goes....

At this point we're probably going to suggest our members pay using the bill pay feature offered by their bank. About 20% already do so. It's easy and free.

As per usual, some of our members will stumble on this idea and will still write us a check.

We'll be recommending that they post their checks at a UPS-type store (but not at collection boxes or at our clusters).

BTW: Our HOA receives mail at a PMB.

Thanks everyone for your replies and suggestions.

Jeff

CathyA3 (Ohio)
Posts: 6,299

Posted:

In addition to bill-pay systems, the management companies in my area offer some other options that may or may not have a fee attached (it's up to the management company).

The issue is that there are usually some costs incurred by the entity that accepts these electronic payments - for example, the fee assessed by credit card companies to stores that accept such a form of payment.

The accepting companies may appear to "eat" the charge and not pass it on to their customers. But the charge is being passed on in some way - the customers just don't see it.

HOAs don't have that luxury since they typically have very bare-bones budgets that account for every dollar. It makes sense to pass these extra charges on to the individuals who incurred them as a "convenience fee" since they have other options.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By JeffB21 on 01/07/2025 7:10 AM
Thanks everyone for your replies.

If I didn't mention this before... we're a small HOA of 53 members and collect dues annually.

Like many we're dealing with stolen mail. The Arrow Key is "out in the wild."

I posted my question hoping there are options we could offer our members for paying their dues without having to write a check.

Ideally there would be solutions out there that are free, readily available and easy to implement beyond the standard bill-pay option.

Such a solution doesn't appear to exist. So it goes....

At this point we're probably going to suggest our members pay using the bill pay feature offered by their bank. About 20% already do so. It's easy and free.

As per usual, some of our members will stumble on this idea and will still write us a check.

We'll be recommending that they post their checks at a UPS-type store (but not at collection boxes or at our clusters).

BTW: Our HOA receives mail at a PMB.

Thanks everyone for your replies and suggestions.

Jeff

Jeff

Add a charge for handling paper checks,

JeffB21 (Washington)
Posts: 22

Posted:

Like gasoline on a fire to those who struggle with change, not matter how small.

With virtual deposits, it's not a big deal for moi, seeing as we only have 53 members.

TimB4 (Tennessee)
Posts: 21,059

Posted:

To minimize stolen HOA mail, get a P.O. Box.

JeffB21 (Washington)
Posts: 22

Posted:

Yes, good point!

I forgot to mention that we've had a PMB for years.

Thanks for adding this to the discussion.

Jeff

JackS20 (North Carolina)
Posts: 271

Posted:

various HOA self management softare charge $20 to $30 per monthand include paying via credit card or ACH. we will be giving a members a discount if they pay via online since it saves hundreds of dollars in accountant fees of manually entering mail in checks.

our hoa has a locked mail box never lost any mail.

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