Debit cards or check cards give cardholders electronic access to their bank accounts. These cards can be used by HOA members to pay for assessments online instead of cash. Debit card processors charge nominal debit card processing fees as a way of doing business. By helping you figure out how to accept debit cards, DuesPayment delivers a convenient method of payment to you and your members. And, accepting debit card payments liberates you from the inconvenience of paper checks.
Debit Cards Step-by-Step
Online methods of payment enable HOA dues to be processed in a few seconds. However, a lot takes place behind the scenes involving a number of steps.
Step 1: Member Initiates Online Payment
The HOA member decides to use the DuesPayment site, payment app or other payment channel to pay for assessments online. After selecting debit card as the payment method, the member provides their name, credit card information and address, and then submits payment. This sets off a series of backend processes.
Step 2: The Payment Gateway & Merchant Account
The DuesPayment payment gateway, which is the frontend and interface of online payment processing, forwards the transaction details (name, address, debit card number, Card Verification Value (CVV) security code and the amount) to its merchant acquirer, also known as the payment processor.
Step 3: Payment Processor & Debit Card Networks (A)
The payment processor (merchant acquirer) validates the payment details by sending them through the debit card networks (Visa, MasterCard) that then forward them to the card’s issuing bank for verification.
Step 4: Debit Card Issuing Bank
The member’s card-issuing bank approves or denies the payment transaction for HOA dues based on the status of the card (active, stolen, or within credit limit). The bank then sends the results back to the debit card networks. In the event the payment is approved, the card issuing bank charges the member and forwards the funds to the debit card networks less interchange fees to cover the assumed credit risk and rewards given to the customer for using the card as the method of payment.
Step 5: Payment Processor & Debit Card Networks (B)
The debit card networks communicate the transaction approved or denied status back to the payment processor and send the money less the assessments fee. At this point, the payment processor informs the DuesPayment payment gateway that the transaction has been approved or denied, and sends the funds for approved payments less merchant acquirer service charges.
Step 6: Payment Gateway & Merchant Account (B)
The DuesPayment payment gateway notifies the HOA member regarding the transaction approved/denied status via the online payment interface. DuesPayment also sends funds for approved payments less its fees. If the method of payment is rejected, DuesPayment’s payment gateway sends this information back to the site or app and payment processing is not completed.
Step 7: Payment
At this point, the funds are moved from the merchant account to the HOA’s bank account. If the HOA is a partner with a DuesPayment sub-merchant account, the payment gateway deposits the net payment into the partner bank account. When payment processing is completed, a confirmation screen notifies the HOA member that the payment went through. Usually, a receipt is emailed to the member and reports are updated in real time.
Why Accept Debit Card Payments with DuesPayment
DuesPayment considers you a valued partner not a customer. We know that building a relationship with you is mutually beneficial. When we work together, we benefit from your valued business, and you benefit from our extensive industry expertise in leveraging online payment methods for collecting HOA dues. DuesPayment partners with many HOAs and is delighted to help them with the challenges of how to accept debit card payments. Whether your HOA is big or small, working with us will reward you with dedicated customized service combined with unparalleled industry experience.