How to collect HOA dues online

Most owners would rather pay dues online than write a check. Online payments also save the treasurer hours of typing and trips to the bank. Here's how to set it up without making a mess of the books.

Pick how owners can pay

• Bank transfer (ACH): the cheapest way to take money. Good for autopay.
• Card: owners like it, but the fees are higher.
• Apple Pay and Google Pay: a card payment with two taps on a phone.

Offer bank transfer and card. Make bank transfer the easy default, and turn on autopay for owners who want it.

Decide who pays the fees

Every online payment has a processing fee. The board decides whether the association pays it or owners pay it. If owners pay, show the fee before they pay, and check your state's rules on card surcharges first. Some states limit or ban them.

Make sure the money goes to your bank

Owner payments should land in the association's own bank account. Ask any vendor exactly where the money sits between the owner's payment and your bank, and who can move it.

Keep the books matching

Each payment needs to land on the right unit, pay the oldest charges first (or in the order your documents say), and match a deposit in the bank. Doing this by hand is where most errors start.

Tip: Send a reminder a few days before dues are due. It cuts late payments more than late fees do.

Roll it out

• Tell owners in a short letter and at the next meeting.
• Keep taking checks for owners who want to.
• Turn on autopay for the board first, so owners see it works.