We use to use a payment method like that; we stoped using it and now have a policy that we only use payment methods that give you cleared funds. It is hard to change over at first but once it is done its fantastic. I never understood either, it is a nightmare trying to do arrears notice and then when you disburse funds to the owner and then they bounce back and then sends the owners account into debit. We now use Bpay, Rental Rewards, Ray White Payment Gate Way, Eftpos, or Money Order.

Stacey – did you know that you will soon be able to accept BPAY, cash/EFTPOS at Australia Post through our Payment Gateway?? Speak with Hania (hania.badran@ippayments.com.au)

The bank can take up to 3 working days to process a payment (processing time). If payments are deposited to your Trust before that processing time and there is a dishonour, it will be reversed back from your Trust. This causes issues if you have already disbursed the money to your landlord. As Stacey said, you are better off with a method that disburses cleared funds.

Why does it take 3 days though? I’ve even had payments reversed after a week. It creates so many problems for us, but taking cash is even worse. Is there anything we can do to shorten the time?

Unfortunately Lizzy this is a process issue within the banks, based on current infrastructure. You can liken the Direct Debit process to a bank receiving a personal cheque. They will honour it, however then they will need to verify the funds are available (this is within the 3 day period for 99% of cases). This is different with EFTPOS, as this is a real time process.

There have been some movements globally about making the process more efficient, however we are a little ways yet.

What about the reversal fees? This really causes problems for us, particularly after an end of month run.

Hi Boxcar,

If you are referring to a dishonour fee, we, unlike other payment gateways, do not charge this fee. However some tenants might be charged via their respective banks