"Convenience fee"

[Root beer]

When I first signed my lease for my off-campus apartment, I was told they only accept checks and money order. I got an email yesterday from the lease office saying they now accept online payment. I decided to do that. I go to the website to set up my account and it gives you option of adding a bank account which will automatically take money out and into theirs at beginning of each month when rent is due or you can add a credit/debit card. I was going to add my debit card when I saw there is a 12.95 "convenience fee" added onto the rent..

What the %^$% does "convenience fee" means? Does it means since it most likely the rents are going to be paid on time and they will not reap any late fees, so they added a 12.95 to it? It going take a week at least for the check to clear banks and about a day and half at most for debit card to make the transaction...I'll let them keep my check for free and wait longer for it to clear banks....

Someone please enlighten me on "convenience fee".....

[SDoolittle]

I don't understand it either, but I get the same thing if I pay my truck payment online.

[Marty]

If I understand correctly, there's a $12.95 convenience fee for online rent payment, but no fee for paying by check? That doesn't make sense to me. Most organizations I deal with encourage online transactions--some even give a monetary incentive--because processing online transactions is much cheaper than processing paper documents.

[Lund Explorer]

If I understand it correctly, paying online requires that you use a debit or credit card.  Such payments are normally subject to a handling charge by the processing companies.  It's probably a fairly good bet that this $12.95 charge is somewhere around that same amount, and isn't really a convenience so much as a surcharge. 

In the State of Michigan, it is illegal to charge more for a product or service when the customer uses either type of card.  Some businesses with very small profit margins such a gas stations have started to refuse the use of debit/credit cards for purchasing fuel.  Others offer a discount for cash.

Next month, pay them with one dollar bills.  The old crinkled up ones that hopefully are hard to count!   :

[Root beer]

I'm just going write them a check with a math equation on it and if they solve it they get my monthly rent. Hows that for "convenience?"  ;D Of course it be really hard for me to work backward to figure out an equation.  ;D ;D

Even if you add your bank account their database (which I never planned to do) there a 12.95 charge..

[Lund Explorer]

Write out the checks in a foreign language.  Nothing easy like French or Spanish.

Maybe one month write it in Latin.  Can you see the landlord having to pay an attorney or doctor to read it!   The next month in Swahili!   ;D

[bilgerat]

Have a blow out, end all, cops from three neighboring towns on site kind of party and trash the place.

You'll likely lose your security deposit (in addition to a place to live) but they will know you are not happy with their policy

[Root beer]

Have a blow out, end all, cops from three neighboring towns on site kind of party and trash the place.

You'll likely lose your security deposit (in addition to a place to live) but they will know you are not happy with their policy

My complex already has a bad reputation for parties.   :-/ The new management said she was going do something about noisy level. I used to know Latin, So I'll write it in roman numeral or something. ;D

[SirSnookalot]

I never use automatic withdraw from my checking account to pay anyone, I choose to be in control and pay when I want to.  I do pay just about everything on line thru my bank, simple transaction with no fee.  This is more convenient for me, I don't care about their convenience and payments are always in time.  Why pay more if you don't have to?

[Big Tom]

Sounds like a sleazy way to make extra money.

I paid my girlfriends cell bill the other day and the clerk told me that if I paid in cash there would be an extra 3 dollar fee. Hadn't heard that one yet.

[nick76]

This $12.95 "convenience" fee is for them.  They are making it easier for you to pay the fee using a credit/ debit card and thus not having to worry about going to the post office or going to the bank.  They charge this fee because there is a cost for processing the cards.  This fee more than likely is close to the amount that they will deduct from them so they in charge are getting all their money when you use the card.  This is a crappy practice and it irks me when I see this.  I own a business and we allow our customers to use their cards.  We do not charge a "convenience" fee to these people because we believe it is a cost of doing business.  If you get people to pay at the time of service there is less chance of not getting paid, so the little bit it costs to collect using a card is minimal.  It either should be a universal thing that everyone can charge a "convenience" fee by law or nobody can.  There is no difference between a gas station/ restaurant/ doctor's office/ apartment complex when it comes to taking cards.  If any of the first three tried to charge you a fee there would be mutiny, but let the last one do it and we are "ok" with it.  This is a terrible practice that should be illegal.  If you cannot run a business good enough to absorb the cost of doing business then you should close the doors.  What is next?  A trash fee for them having to throw away your payment coupon you had to mail back in with your payment or a fee to protect your personal information because the gov't is mandating they do so?  It is just nonsense.

[grimlin]

I don't get it either.

This is just as stupid when gas stations are charging an extra .10 cent a gallon when you use your card as apposed to paying in cash.Not every gas station does this but the ones who do i try to avoid them.

[Root beer]

Sounds like a sleazy way to make extra money.

I paid my girlfriends cell bill the other day and the clerk told me that if I paid in cash there would be an extra 3 dollar fee. Hadn't heard that one yet.

That is totally unheard of... I remember year when I was 17 I went to renew my car tag registration and I didn't bring cash with me so they charged me an extra 3 dollars for using a debit card. Being young and err inexperience at the time I asked the woman "why?" and she couldn't explain it too me.  : She could have said card processing fee...

[preach4bass]

So, what's the big deal? If you don't want to pay the extra $12.95, keep writing a check every month. Writing a check isn't that big of an inconvenience. In fact, you could have probably wrote several rent checks during the time you've invested in this thread. ;D

[Root beer]

So, what's the big deal? If you don't want to pay the extra $12.95, keep writing a check every month. Writing a check isn't that big of an inconvenience. In fact, you could have probably wrote several rent checks during the time you've invested in this thread. ;D

The big deal is I've never heard of "convenience fee." I was just wondering.. I'm just going keep writing them a check. ;D

[bweave09]

When I first signed my lease for my off-campus apartment, I was told they only accept checks and money order. I got an email yesterday from the lease office saying they now accept online payment. I decided to do that. I go to the website to set up my account and it gives you option of adding a bank account which will automatically take money out and into theirs at beginning of each month when rent is due or you can add a credit/debit card. I was going to add my debit card when I saw there is a 12.95 "convenience fee" added onto the rent..

What the %^$% does "convenience fee" means? Does it means since it most likely the rents are going to be paid on time and they will not reap any late fees, so they added a 12.95 to it? It going take a week at least for the check to clear banks and about a day and half at most for debit card to make the transaction...I'll let them keep my check for free and wait longer for it to clear banks....

Someone please enlighten me on "convenience fee".....

Same exact deal for me....it blows. The only way we can beat it is give all of our rent money to one roommate and have him pay. That way the fee is split up between 4 people instead of everyone paying individually. You wouldn't happen to live in a complex called Copper Beech, would you?

[Root beer]

Nope. I love how the website says "less pay and more play."

http://ridgestudenthousing.com/

;D Ah well. I'm pretty sure after this semester I'm find someone else to take over my lease and I'm get a studio or two bedroom apartment with my bestfriend..I'll just write them checks until then.

[tyrius.]

Credit/Debit card companies charge vendors for processing transactions.  So, if the vendor (rental company) wants to net the same amount they charge a "convenience fee".  Gas stations do it more often than many other stores.  The margin on a gallon of gas is very small and lessening that amount due to credit card fees makes it even less. So, many stations charge a little extra to cover the charges from Visa/MC.

If you want to be upset about the situation be upset with Visa/MC they've got everyone by the short hairs and make HUGE amounts of money processing these transactions.

[D4u2s0t]

I pay almost no-one directly... I have TD bank, and my checking account has a "Bill Pay" feature, so I add all of my accounts and can make all of my payments on one website, with no fees.

[Walz]

Not sure what state you are in but in the following states it is not legal for merchants to add surcharges to any credit card transactions: CA, CO, CT, FL, KS, MA, ME, NY, OK, and TX. In addition, most card holders prohibit this as well.

There are exemptions (including some government agencies), but here is what I understand to be the rules for most situations:

• A convenience fee cannot be assessed in a face-to-face environment
  
• A convenience fee cannot be assessed for recurring payments. The convenience fee was designed for one-time payments and not for payments in which a cardholder allows his credit card to be periodically charged for recurring goods or services. Examples of recurring charges include, but are not limited to, insurance premiums, subscriptions, Internet service provider monthly fees, membership dues, and utility charges.
  
• The merchant must provide a true convenience in the form of an alternative payment channel outside the merchant's customary face-to-face payment channels, and the fee must be disclosed by the merchant to the cardholder as a charge for the alternative payment channel convenience that is provided.
  
• The convenience fee must be disclosed prior to the completion of the transaction, and the cardholder must be given the option to cancel the transaction if not wanting to pay the fee.
  
• The convenience fee must be included in the total amount of the transaction; it cannot be split out from the transaction amount.
  
• If a convenience fee is assessed it must be for all payments (V, MC, Discover, AMEX, ACH, Check) within a particular payment channel (mail, phone, internet).
  
• Since all convenience fees are required to be assessed equally, a merchant who accepts Visa is restricted to a flat convenience fee for all cards.
  

Theses rules may or may not apply to your situation, and I am no expert on these regulations. This is just info I have have gathered from family members who work with credit card companies and from my own research. If you really want to pursue it your best bet would be to contact your card holder.

[J Francho]

Pay online, using your bank's online tools, not theirs.

[bmadd]

Credit/Debit card companies charge vendors for processing transactions. So, if the vendor (rental company) wants to net the same amount they charge a "convenience fee". Gas stations do it more often than many other stores. The margin on a gallon of gas is very small and lessening that amount due to credit card fees makes it even less. So, many stations charge a little extra to cover the charges from Visa/MC.

If you want to be upset about the situation be upset with Visa/MC they've got everyone by the short hairs and make HUGE amounts of money processing these transactions.

This is the reason. Although 12.95 is pretty steep for each transaction from what I've seen. Also, like someone else said earlier, many businesses consider this fee as a cost of doing business because they understand the frustration many consumers have with paying that fee.

[firefightn15]

Credit/Debit card companies charge vendors for processing transactions. So, if the vendor (rental company) wants to net the same amount they charge a "convenience fee". Gas stations do it more often than many other stores. The margin on a gallon of gas is very small and lessening that amount due to credit card fees makes it even less. So, many stations charge a little extra to cover the charges from Visa/MC.

If you want to be upset about the situation be upset with Visa/MC they've got everyone by the short hairs and make HUGE amounts of money processing these transactions.

With the new cc laws going into effect, go and check out the new fees and penalties that the cc companies are coming up with to get the money back that the new laws are taking away from them.  Non-usage charges, not enough usage charges, fees for receiving paper statements, and others.  :-/

[nick76]

I know 12.95 seems a bit steep to some, but when you figure that this person is probably paying 800-1200 in rent (just a guess) is really is not that much.  Most credit card companies get around 2-5% off the top plus the cost of the equipment they charge you for every month.  They still may not be recouping all the money.

[Root beer]

I know 12.95 seems a bit steep to some, but when you figure that this person is probably paying 800-1200 in rent (just a guess) is really is not that much. Most credit card companies get around 2-5% off the top plus the cost of the equipment they charge you for every month. They still may not be recouping all the money.

The apartment complex itself is making nearly $1,476 a month in revenue per units. They have quite a bit of units too. At least 6 buildings with 16 units per building, it at least $141,696 a month in revenue. I think there's 7 buildings, but I know there at least 6, I'm too lazy look outside and count haha. I only plan to live here for a semester, I tried to get a townhouse, but apparently only two people moved out last year and I was 4th on the list. After this semester hopefully I'll get more private apartment elsewhere.

P.S. these apartments are individual leased with 4 people per room. That why the figure $1,476 a month is pretty high. They charge a slight extra for electricity, but it usually not more than 8 dollars a person in the room.