The Los Angeles startup introduced a new feature today called Pay with RadPad that enables users to charge their rent to a credit or debit card. In what the company claims takes 90 seconds, renters set up recurring payments by entering how much they pay in rent and the due date; who to make the check to; where to send it; and what card to charge. Then RadPad makes sure their rent is paid on time every month. The service works whether or not your landlord uses RadPad.
“Approximately $350 billion in housing rent is written out on checks or given in cash annually, and until now more than 90 million renters in the U.S. didn’t have an option to use their credit or debit card to pay their rent,” said RadPad co-founder and CEO Jonathan Eppers in making the announcement.
Pay with RadPad accepts Visa, MasterCard and Discover, with American Express coming next month and plans for Apple Pay in the near future. The service comes at a price, though: Debit card users pay a flat $4.95 monthly fee, but credit card users pay 3.25 percent of their monthly rent amount. That’s an extra $58.50 per month for the hypothetical customer paying $1,800 a month in Pay with RadPad’s artwork for the feature. Sure, you might get a free plane ticket with all the points you rack up charging your rent each month, but you could probably buy two with the money you’re paying in fees.