A NEW AND MODERN WAY TO PAY YOUR RENT
Posted on
Written by: Putri NurazminaBlueDuck Community Executive
FPX Direct Debit: A modern way of rental payment
Payment methods have come a long way. From bartering to coins to banknotes to cheques to cards and now, digital payments with the arrival of the Internet and the World Wide Web system. This has shown how much the human population has advanced in terms of technologies. Nowadays, almost everything can be done with convenience and most importantly, online.
Traditional rental payment method
These changes can also be seen in the way of rental collection. Traditionally, landlords would collect their rentals manually from their tenants, mostly via cash. However, collecting cash as a rental payment has a lot of disadvantages. Firstly, cash is hard to trace, and this loophole is often the catalyst to a loss in dispute regarding the rental property’s rent payment. Plus, it is very time-consuming for landlords or tenants who are far away from each other to meet up and settle the rental payment.
Another popular traditional rental collection or payment method is via cheque. Using a cheque is more secure than cash because it is a method where you ask the bank to pay money from the check holder’s account to another party. Thus, there are records for landlord and tenant to refer to. However, this does not guarantee that the tenant has enough money in their bank account and the risk of a bounced cheque becomes high and that is also bad news for tenants as they will be charged a fee from the bank due to that.
Modern rental payment method
Moving forward and we’re now in the 21st century and are at the end of 2021. Time and technological advancement have revolutionized the system for payment methods by introducing Credit Card and Direct Debit payment methods and it is a trend that people are picking up fast. Here at BlueDuck, we are also riding the wave and is using Direct Debit or Credit Card in our system to help landlord and tenants to settle their rent!
Direct Debit is the most preferred payment method in modern times as it is an automated payment collection that collects regular and recurring payments directly from a person’s bank account with a single authorization. Meanwhile, a Credit card enables its user to pay for goods or services in advance and are billed later (usually a month after).
Advantages of using Direct Debit/Credit Card to pay or collect rent
By using our Zero Deposit solution or FPX Rental Collection service (subscribed ala carte by the landlord), tenants are required to sign up to Direct Debit to ease their payment process and for landlords, their rental collection. Here are some advantages both tenant and landlord will get by using our direct debit system:
Set and forget
Once the tenant has signed up for direct debit, they can just forget about their rental payment every month. Why? Because Direct Debit only needs a one-time authorization for it to automatically collect payment from the tenant’s bank account automatically after that. So, chillax because you don’t have to do anything more after signing up to Direct Debit. For BlueDuck tenants, you can authorize your Direct Debit rental collection through this link: bit.ly/BDTenantSignupDD
Auto-collection = no more late payment. As long as the tenant has enough money in their bank account, they know that their rent is paid automatically, on time. One less worry for both tenant and landlord on late rental payment. Never miss a rental payment ever again and tenants can avoid a late payment penalty. Here at BlueDuck, it has been proven that Direct Debit lowers the default rate and increased rental collection time compared to those who did not use Direct Debit.
3. Convenient
Direct Debit is super duper convenient. Remember those times where you had to drive to the bank and line up at the ATM machine or at the counter to make a rental payment or post a cheque? Say goodbye to those times as, again, signing up to Direct Debit is a one-time thing PLUS it’s online!
Another inconvenience gone is when neither tenant nor landlord must meet up with each other to settle the rental payment. This is very convenient and time-saving for landlords too, especially if they live far away from their rental property.
4. Security
Fret not and join the trend as Direct Debit is one of the most secured payment platforms currently. Therefore, you don’t have to worry about thinking if what you’re signing up for is a fraud. Don’t worry, because for a business to set up a direct debit, they must through screening and strict regulations from Bank Negara.
Towards contactless and cardless future
Time is going by fast, and human technological advancement is unstoppable. Direct Debit may not be a thing in the early 2000s, but it is now, especially after COVID-19 happened. The trend of paying things through Direct Debit/Credit Card is on the rise as people believe that contactless payment lessens the risk of getting the virus. Plus, the increase of smartphone ownership and mobile financial tools are making things accessible just by the tip of people’s fingers.
Tenants, buy our Zero Deposit package now to save up to 75% of your money from paying the traditional security rental deposit and sign up to our FPX rental collection system via a tenant login portal. You can buy it now at this link https://www.blueduck.my/tenantprofilesignup.
Landlords, our FPX rental collection system is also available ala carte. Just contact our BlueDuck team at 016 – 611 7154 (https://wa.me/60166117154) and we will help you set it up!
Don’t forget to follow our social media pages for the latest updates!
https://www.facebook.com/BlueDuckMY/