Pay Rent with a Credit Card, Thanks to New App
A new app known as RadPad allows users to pay rent with a credit card, even if the landlord does not accept credit card payments.
For landlords who are signed up with RadPad, the app sends money from the tenants directly to them. Landlords who are not signed up with RadPad will get a check in the mail a few days after the tenant makes a payment. Either way, the tenant gets to enjoy the convenience of paying rent with a credit card directly from their mobile device.
There is a fee associated with this service. Debit card payments cost $4.95 to process, while credit card payments cost 3.25% of the transaction.
“If we could somehow get a fee that was nothing, we would do that. But there’s really no way we can avoid it. We’re at about the same at Venmo, which is the lowest in the industry right now,” Jonathan Eppers, one of the founders of RadPad, told BuzzFeed.
For many modern day renters, the fee may be worth the convenience and stress relief.
“People are spending much more of their income per month and it’s creating financial anxiety toward the end of the month and potentially the cash flow isn’t there,” said Eppers. “Ultimately we want to give people the financial safety net by [letting them] put it on their credit card and pay for it later.”
Consumers who have a rewards card may generate some cash back or mileage by paying this way, but it still won’t offset the cost of the fees associated with using the card. If you choose to use RadPad or similar apps to pay your rent, make sure to pay off your credit card in full and on time, or it will cost even more money in the form of interest payments.