Radpad, a service that offers both credit card and debit card payments for rent, offers a monthly check-cutting service to landlord that only charges a $4.95 fee when using a debit card.
Your first month’s rent payment is free with a debit card. Then it’s $4.95 for up to a $5000 payment.
Credit card payments cost 2.99% so aren’t worth doing. But if you have a rewards debit card this can be a great way to earn miles for your rent.
- This is possible, because the cost to process debit transactions is really low (because of the Durban amendment)
- But for the same reason, banks usually do not incentivize debit transactions any longer.
Here’s what does still exist:
- I use the Suntrust Delta debit card, which earns 1 mile per dollar spent. You can no longer sign up for this card.
- If you want to earn miles for debit payments and don’t currently have a rewards-earning debit card, UFB Direct offers 1 American mile per $2 spent albeit with earnings caps.
$1500 rent would earn 1500 Delta miles at a cost of $5, or 1/3rd of a cent per point. Worth it. It would also earn 750 American miles at 2/3rd of a cent per point. Also worth it.. This could be useful for generating points for some.