Rent collection is the primary source of income for landlords. When rent does not reach your bank account, it can cause major cash flow problems on your investments. It’s imperative to have an absolutely safe and secure payment provider.
A recent announcement from a rent collection company, eRentPayment, stated the following:
“We regret to inform you that our payment processor, eCheckit, has informed us that it expects to file for bankruptcy protection shortly. We are told that it suffered losses due to a fraud and that its processor, Check Commerce, has held over $4 million of its funds and will not release the funds to the intended recipients at this time.”
We are very saddened to hear this news and know many landlords have experienced great hardship from this situation. Many of our customers have reached out to ask if a similar situation could occur from transacting on our platform. At Hemlane, we do not believe a similar situation could happen to our customers. We have outlined a couple of reasons below.
Security at Hemlane
At Hemlane, security is a top priority. While we cannot disclose our algorithms, partners, or security processes, Hemlane has an industry-leading security track record to protect our customers.
Hemlane uses bank-level encryption security to enhance all payments on our platform. Sensitive personal and banking information is stored as tokens, where the value is essentially zero. You can read more about our security through our support center here. From a software development perspective, we employ some of the best Silicon Valley engineers, who use automated and manual verification processes on every line of code that is pushed to our users.
Payments are processed through Stripe
Hemlane’s partner for all payment transfers is Stripe, which handles billions of dollars on a daily basis. Stripe is an industry standard for online payment transfers and powers the payments of over 100,000+ businesses across 100+ countries. The company has a solid track record and a strong fraudulent and risk assessment team. Their ACH system transmits the money from the tenant’s account to the landlord’s account, without Hemlane taking ownership of the money (in other words, Hemlane does not take possession of the funds).
Software built for landlords and managers
There are many other ways to collect rent online; unfortunately, most systems were not built with Landlord-Tenant Law in mind. Hemlane was specifically made to support landlords and managers in their rent collection process. Here's why:
- Unlike direct deposit, your personal information is never shared with tenants.
- Hemlane's elegant interface includes rent reminders, online receipts, and multiple bank accounts.
- Unlike PayPal and Venmo, landlords and managers control the payment requests. Read more about the importance of that here.
- Unlike other rental softwares, we have no hidden fees. Bank-to-bank transactions are integrated into the basic package and you do not have to pay extra for faster transfers.
- Best of all, we offers automatic late fees, designed where the tenant must pay the late fee before rent. Hemlane wants to make sure the contract is being followed.
We hope this article helps to outline the amount of time and focus that Hemlane dedicates to our payment processing. And, we hope you consider Hemlane as an alternative to eRentPayments while you search for a solution.
Photo cred: Joel Filipe