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Subject: Credit Card Fees
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Author Messages
ConchoP
(Texas)

Posts:107


10/03/2018 11:06 AM  
Are governing documents do not cover this: Can the HOA charge a convenience fee for those wanting to pay Via Credit Card?
RichardP13
(California)

Posts:3139


10/03/2018 11:33 AM  
It isn't the HOA charging the fee, it is the provider providing the service.
BillH10
(Texas)

Posts:294


10/03/2018 11:52 AM  
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.
ConchoP
(Texas)

Posts:107


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?
DouglasK1
(Florida)

Posts:1281


10/03/2018 2:42 PM  
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?



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
(Texas)

Posts:294


10/03/2018 3:15 PM  
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.
BarbaraT1
(Texas)

Posts:107


10/04/2018 6:16 AM  
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?




No, you invoice the annual assessment at $75, and your third party payment processor adds the fee, if the members pay that way.

JohnC46
(South Carolina)

Posts:7871


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.
RoyalpitA


Posts:0


10/11/2018 12:54 PM  
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.




Precisely

The HOA has a 'fee'.

The HO can pay it any way they want including an INDEPENDANT 'processor'.
DouglasK1
(Florida)

Posts:1281


10/11/2018 3:08 PM  
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.

Escaped former treasurer and director of a self managed association.
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