Credit cards are payment cards issued to consumers who use them as a method of payment. They can pay for goods and services such as HOA dues based on the holder’s promise to pay in the future. In accepting credit card payments, HOAs engage the services of credit card processing providers.
Let Your Members Pay Assessments Online
DuesPayment’s goal is to offer you and your members the convenience of credit cards as a payment method. Accepting credit card payments for HOA dues unshackles you and your members from the tyranny of paper checks. We have a long history of providing customizable, scalable, and flexible payment methods, including the ability to accept credit card payments. By making it easy to accept HOA dues, we help free up time for you to focus on the things that matter.
Accepting Credit Card Payments Step By Step
HOA dues are typically processed in a few seconds when a credit card is used as the payment method. A lot, however, goes on in the background involving various steps.
Step 1: User Initiates Online Payment
The HOA member interacts with the DuesPayment site or via a payment app or other payment channel in order to pay assessments online. He then chooses credit card as the online payment method, provides his name, credit card info and address, and submits payment. This starts the backend process.
Step 2: The Payment Gateway & Merchant Account
DuesPayment’s online payment processing frontend interface, aka the payment gateway, sends the transaction details, such as the name, address, credit card number, Card Verification Value (CVV) security code and the amount to the merchant acquirer. The merchant acquirer is also known as the payment processor.
Step 3: Payment Processor & Credit Card Networks (A)
In validating payment details, the payment processor (merchant acquirer) relays them through the credit card networks (Visa, MasterCard, American Express), which then send them to the card’s issuing bank for verification. When the member pays HOA dues with Discover Card or Diners Club, which issue cards directly to consumers and use a three-party scheme of a closed loop system, the payment processor sends the payment to the acquiring bank of the merchant for validation because it’s the same as the member’s card issuing bank. Transactions such as these are processed through the Discover payment network and relayed to Discover Bank for verification.
Step 4: Credit Card Issuing Bank
The member’s card-issuing bank approves or denies payment for HOA dues depending on the card’s status — active, stolen, or within the credit limit. The bank then sends the results back to the credit card networks, and if payment is approved, the card issuing bank charges the HOA member and sends the funds to the credit card network less the interchange fees covering the assumed credit risk and any rewards the customer receives for using the credit card as the online payment method.
Step 5: Payment Processor & Credit or Debit Card Networks (B)
Now, the credit card network relays the transaction approved or denied status to the payment processor and forwards the money minus the assessed fee. If the member wants to pay assessments online with a Discover Card or Diners Club that uses a closed loop system, Discover Bank validates and sends the payment approved or payment denied status back over its Discover Network directly to the payment processor. The payment processor then informs the DuesPayment payment gateway that the transaction is approved or denied and sends the funds for approved payments less merchant acquirer service charges for using the credit card as the payment method.
Step 6: Payment Gateway & Merchant Account (B)
DuesPayment’s payment gateway informs the HOA member whether the transaction was approved or denied via the online payment interface, and sends funds for payments that are approved less fees. If the payment method is denied, DuesPayment’s payment gateway relays the information to the site or app and payment processing comes to a halt.
Step 7: Payment
At this point in the process, the money needs to move from the merchant account to the HOA’s bank account. Due to the fact that the HOA is a partner with a DuesPayment sub-merchant account, the payment gateway deposits the net payment into the partner’s bank account. Once payment processing is completed, the HOA member is informed of the successful payment via a confirmation screen. A receipt is then emailed to the HOA member and reports are updated in real time showing that payment has been made.
Why Use DuesPayment for Collecting HOA Dues?
DuesPayment considers you a valued partner rather than a customer, and is interested in building a relationship with you based on our industry expertise in accepting credit card payments. We partner with HOAs nationwide helping them navigate how to accept credit card payments. No matter the size of your HOA, when you work with DuesPayment, you’ll enjoy dedicated customized service combined with unmatched industry experience.