Online property management platforms are introducing new fees and promoting paid “memberships” to circumvent the costs associated with credit card payments, following the implementation of a ban on surcharges by the Reserve Bank. These “rent-tech” services are shifting the financial burden of processing card transactions onto tenants to maintain their profit margins in the wake of the regulatory change.
The shift has prompted consumer advocates to urge tenants to challenge or bypass these additional charges. In specific jurisdictions, such as Victoria, local laws already prohibit fees on rent payments, providing a legal basis for tenants to dispute the new levies imposed by digital property platforms.
As the credit card payment reform takes effect, the industry response highlights a tension between regulatory compliance and business models reliant on transaction fees. By moving from direct surcharges to subscription-based models or alternative fee structures, platforms are attempting to sidestep the direct prohibition while still recovering the costs of handling electronic payments.
Experts and consumer groups are advising renters to seek out free payment options where available. The guidance emphasizes that tenants should not automatically accept new charges, particularly in regions where legislation explicitly bans fees on rent transactions, and should actively review their payment methods to avoid unnecessary expenses.
<small>Source: The Guardian — read the original story there.</small>
