What does it cost to accept rent online?

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    Karl Schwartz

    It appears that the transaction fee model is changing -- at least on Dwolla's end, at least for users with Landlord Station Starter Membership accounts. I received a notice from Dwolla on 4/01/2017 in conjunction with my tenants' scheduled, automatic recurring monthly rent payment advising that Dwolla is now charging a transaction fee of 0.5% of the transfer amount, with a maximum charge of $5 per transfer. As a condition for receiving these rent payments from my tenants, I was provided two choices: (1) agree to the terms and the fees effective immediately; or (2) do not agree and immediately deactivate my Dwolla account. I had no prior notice of this new fee structure from Dwolla or Landlord Station.

    My Dwolla account was established through Landlord Station. I am reasonably certain that each of my tenants Dwolla accounts were also established through Landlord Station. As a property manager who has gone to the effort of getting tenants set up with dual Landlord Station and Dwolla accounts, I feel stuck. Landlord Station's response to the original question about what it costs to accept rent online was, "We do not charge a transaction fee to either you or the tenant. The only charge will be the membership fee to the landlord account holder."

    Did my tenants or I set up our accounts incorrectly? Has there been a change in the Landlord Station TOS? Was there something in the TOS that I missed with regard to fees being assessed by Dwolla in addition to the monthly Landlord Station membership fee I pay? Thanks.

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