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Pay rent via credit card: Scam?

  1. #21

    Join Date
    Jan 2010
    Posts
    2,559
    Quote Originally Posted by jack55
    Yeah there's a cap I think of 10k a day, 100k a year. But that only applies to China Mainland issued cards. HK Unionpay shouldn't have this restriction. And I think this is for bank cards only. Credit cards not sure. They had put a limit on it and the insurance companies basically had their staff swiping the card many many times to add up to the total. I think they put a stop to that too.
    That limit is for cash withdrawals only

    https://news.worldcasinodirectory.co...ay-cards-52238

  2. #22

    Join Date
    Sep 2017
    Location
    Mid-Levels
    Posts
    32

    If I understand this:

    plan a) tenant pays rent via credit card, landlord receives full amount within 5 working days - no fees to either the tenant or landlord for processing this transaction. Most likely a promotional thing to get people to sign up.

    plan b) full service management company - tenant pays rent via cc, landlord receives rental balance net of fee (4.5%) to cover for all property management service that the company provides.

    plan c) full service management company with rent advance - tenant pays rent via cc (each month), landlord receives upfront full year rent net of fee (9.8%). Company manages the property for the landlord.

    This is innovative in parts. I currently pay 8% to a management company in the US to manage a property (rent collection, arranging maintenance, tenant move in move out inspection, etc). For an additional 1.8% i'd be happy to collect all rent upfront assuming that its the management company then bears the risk of tenant defaulting.


  3. #23

    Join Date
    May 2019
    Posts
    6

    Got reply from CS, note the "at this moment"

    Thank you for your enquiry, there are no transaction fees involved to pay your rent with a UnionPay Credit Card at this moment, please see the details at
    http://unionpayintl.com/hk/promotion/rent
    . Also, there are no additional charges against with different receiving bank accounts now.
    Please submit the tenancy agreement and start paying your rent
    by completing the approval process.

    Should you have any further queries,
    please call RentSmart customer service hotline.

  4. #24

    Join Date
    Dec 2018
    Posts
    462
    Quote Originally Posted by wanderer01
    If I understand this:

    plan a) tenant pays rent via credit card, landlord receives full amount within 5 working days - no fees to either the tenant or landlord for processing this transaction. Most likely a promotional thing to get people to sign up.

    plan b) full service management company - tenant pays rent via cc, landlord receives rental balance net of fee (4.5%) to cover for all property management service that the company provides.

    plan c) full service management company with rent advance - tenant pays rent via cc (each month), landlord receives upfront full year rent net of fee (9.8%). Company manages the property for the landlord.

    This is innovative in parts. I currently pay 8% to a management company in the US to manage a property (rent collection, arranging maintenance, tenant move in move out inspection, etc). For an additional 1.8% i'd be happy to collect all rent upfront assuming that its the management company then bears the risk of tenant defaulting.
    Question: who bears the risk if RentSmart fails to pay the rent to the landlord? Or changes the terms during a lease and starts taking a fee out of the payment to the landlord?

  5. #25

    Join Date
    Apr 2019
    Posts
    40
    Quote Originally Posted by traineeinvestor
    Question: who bears the risk if RentSmart fails to pay the rent to the landlord? Or changes the terms during a lease and starts taking a fee out of the payment to the landlord?
    Doesn't the customer initiate a charge back / dispute? Bank temporarily refunds the customer's money, until the service/good has been delivered. If Rentsmart goes bust, bank is unsecured creditor. If Rentsmart has too many disputes, they get their merchant facilities withdrawn. At this happens in Australia/South Africa/New Zealand (regions that I have directly worked in).

    Not sure what the liability with China Union Pay is.

    If they change the cost to customer, generally they would have to disclose the fee change up front. I'm not sure that they could keep their merchant facilities if they too many people complain.

  6. #26

    Join Date
    Apr 2019
    Posts
    40
    Quote Originally Posted by traineeinvestor
    Interesting. So the landlord gets the agreed amount of rent with no deductions, fees etc taken out of it which if fine.

    But how does RentSmart make its money?
    From what I understand from other folks, they are trying to acquire as many customers as they can.

    Not sure what the merchant fee for UnionPay would be, but Rentsmart seem to be wearing that cost. Supposedly they are VC backed (as similar to the uber model, money is being poured into it to acquire customers and build out both sides of the market).

    They may make a little bit of money by parking the money 'somewhere'. At most, they could have 5 days of interest (at whatever the at call rate is).

    Maybe unionpay is giving them very low rates.

    The only other revenue side is selling services to landlords. Maybe the SMS notification is spammy 'join us now' type messages. Maybe they start putting the landlord onto mailing lists, etc, but that may be problematic if they never consented. Not sure how well the PDPO 'rules' are enforced in HK.

    Maybe you as a renter sign away your data privacy rights and they sell you as a product to other marketers...

    The other Rental program (keychainpay) charges the customer/tenant the merchant fees (2.1% to 2.7%), which to the renter seems like a very bad deal.
    eryhur likes this.

  7. #27

    Join Date
    Aug 2010
    Location
    Kowloon, Hong Kong
    Posts
    8

    I have seen some banks also providing this service but I think there's a small fee involved.
    https://www.citibank.com.hk/english/...ds/payall.html


  8. #28

    Join Date
    May 2008
    Posts
    1,042

    OMG just go ask the merchants who can advise you


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