Hemlane allows owners to let tenants pay by credit or debit card, and Cash App when enabled, when creating a payment request. These payment methods can clear faster than ACH (bank-to-bank) transfers, but they come with additional dispute risk that owners should be aware of before enabling them.
What Makes Credit or Debit Card Payments Risky?
While any payment method can be disputed, credit and debit card payments are generally easier for tenants to dispute than ACH payments. This can increase the likelihood of a dispute being filed, even after funds have already been delivered to the owner.
What About Cash App Payments?
Cash App payments can vary depending on how the tenant has funded their Cash App account, which Hemlane does not have visibility into. Because of this, both the dispute risk and processing behavior may differ from one Cash App payment to the next.
- If the tenant funds the payment through a linked bank account, the dispute risk and processing will be similar to an ACH payment
- If the tenant funds the payment through a linked credit or debit card, the dispute risk will be similar to a card payment
- If the tenant funds the payment using their Cash App balance, the dispute risk is typically lower since disputes are handled through Cash App rather than a bank or card network
Processing Fees and Disputes
When card or Cash App payments are enabled, a 3% processing fee applies. During payment request setup, the owner can choose whether the tenant or the recipient covers this fee.
If a payment dispute occurs on a credit or debit card or Cash App payment, the recipient of the payment may be responsible for the 3% processing fee, even if the tenant originally covered it at the time of payment.
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