Posted by Chuck on January 1, 2015
Manufactured Spending

Published on January 1st, 2015 | by Chuck

26

RadPad – Pay your Rent with a Debit/Credit Card

[Updated: 6/24/16]

Debit/Credit Rent Payments

Forward Cabin reports that there’s now a service by Radpad with which you can pay your rent via debit or credit card. Radpad is a company that focuses on all aspects of renting property, and they now have a service which takes care of sending your landlord the check. You pay via debit or credit card.

Here are the fees:

Of course, my first thought was to use the service to just send the money to a friend, but Forward Cabin reports that there’s a verification process that the landlord goes through, so that probably won’t work. That being said, this may be a good option for those who have legitimate rent payments.

Unfortunately, Radpad no longer processes rent payments for unregistered landlords. Only landlords who were verified by Radpad can be paid. They do encourage you to have the landlord be verified and registered.

Credit Card Option

The credit option doesn’t sound too good because of the fee. On the Radpad site they mention the fact that you’ll earn credit card rewards, such as the 2.2% rewards with the Barclay Arrival, which could cover most of the fee, but the fee is too steep for that.

It still could be an additional option for someone looking to meet a minimum-spend requirement or for someone looking to liquidate Amex gift cards which were purchased through a shopping portal for extra rewards. There are lots of other ways to do that, but for someone looking for an easy way, this could be useful. (Currently, you’re better off paying your rent with Plastiq at just a 2.5% fee.)

One other thing that comes to mind is that if you have a landlord who isn’t totally scrupulous, and you’re a little worried about losing money somehow, it may be smart to pay your rent with a credit card in order to get a certain amount of protection from the credit card issuer.

Debit Card Option

The debit option could be interesting for someone who has a debit card that pays out rewards. To see if this is worthwhile, the main factors we need to calculate is how much your rent is and how much you value the rewards.

[Read: Complete List Of Rewards Earning Debit Cards]

There’s the Suntrust debit card which earns 1 Delta mile per dollar spent, but I was thinking more about the Paypal Business Debit Card (PPBDC) which pays out 1% cash-back for non PIN-based debit charges. Besides the 1% cash-back, it’s also useful to have spend to put on the PPBDC in order to liquidate Paypal Cash cards which were purchased with a credit card. Since you shouldn’t be withdrawing the money to your bank account, it helps to have other ways to liquidate.

On a $1,000 rent payment, for example, you’ll net $10 from PPBDC.

The Radpad site mentions explicitly that Paypal debit cards will work for the debit card option.

Final Thoughts

On a lighter note, I’m absolutely convinced that the owners of Radpad are Flyertalk members (and I’m almost serious about this) – they’re way too familiar with the rewards angle. They have a long explanation (click the “Does it make sense” link) about credit card points and signup bonuses. And, they have a special paragraph about the Paypal debit card, which is very odd. (This would also seem to indicate that card-processing fees on the PPBDC are around the same as a regular debit card, see Who’s the Sucker?)

In any case, if I had a nice size rent payment, I’d definitely consider using the service with my PPBDC, mainly to be able to liquidate Paypal Cash cards.



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Conrad
Conrad

Wow, this actually looks like a super sweet deal to me. I have rent of near $2000, so the ability to pay with CC, then get the additional 1% on the PPDBC is just gravy. I’ll be trying it out this month and let you all know how it goes!

I’m curious how Paypal will respond to this? Everything on FT points to them being very sensitive about how PPMC is spent… I wonder if I’ll still get warning letters from Paypal for this?

justaguy
justaguy

The service tracks your payment, and emails you when it’s been sent, and when the check has been deposited by your landlord. I used it this month, and I am confident that as long as you give your landlord a heads up that your payment will be coming via Radpad, that you shouldn’t have an issue.

If your landlord claims it hasn’t been received, then I think Radpad has a guarantee, and can confirm that the check has been cashed or not.

And I used PP debit and got the 1%.

Justanotherguy
Justanotherguy

Can we use prepaid visa cards to pay and if so, can we use multiple visa’s to make say a $2,000 rent?

goals^n^dreams
goals^n^dreams

Will I get a hard pull if I apply PPDBC?

William Charles

From memory, yes.

Barb
Barb

Right before payment went through, I got a call to verify (and vet) about landlord and tenant(me). After getting approved, I sent payment using PPBDC with a credit card as back up.Landlord got payment on time so this works!

John
John

What do they require on your lease agreement because it tells me my lease didn’t pass security checks so they denied me to do business with them . Help anyone ??

Waddly Penguin
Waddly Penguin

Same thing happened to me, for a legitimate rental: account locked and denied. It doesn’t seem there’s any way to appeal. I’ve tried and they’ve been evasive.

J L
J L

Would you think you might be able to pay your mortgage this way as well? Because its a check that is issued?

William Charles

I don’t think you’d be able to.

Rapid Travel Chai

Any workarounds on PPBDC to get daily transaction limit increased over $3k?

MM
MM

Update: Radpad now lists 3.49% for credit cards. No fee for debit cards.

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