Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
So I am military stationed overseas but I have several rentals in Dayton Ohio area under rehab with my contractor. We are having problems allowing me to pay him via credit card.
Originally he tried to invoice via Paypal but that wouldnt go through because I am overseas. He then set up an account with Square & started invoicing me. We have had no problems until recently when an invoice exceeded $10k. Square refuses to release the funds to him despite him verifying his account etc.
What alternatives are people using or can I use to pay the contractor via Credit Card?
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
10y
Take out a cash advance against the card if you don't possess the cash and need a loan.Send that cash by wire transfer.I have Quickpay from Chase bank for quick and easy payments into someone else's checking account.
Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
10y
@Account Closed, thanks. He isnt going to put a lien on the property because he has been paid in full up until this point. The $10k is to pay for services that are happening next week.
Why do you say that using Square is asking for trouble?
Rental Property Investor · Washington, DC · Member since 2015 · 278 posts · 156 votes
10y
Do you have a stateside bank account?
Does that bank have something that will allow you to transfer money (for a fee, there is always a fee) to your GC? Many banks have a billpay that will allow you to send a check to a person. I've done it before with my GC, however, that was using money in a bank, not transferring money from a credit card.
$10K and anything over may have something to do with the War on Drugs/Terror. That seems to be the amount that triggers something where financial institutions have to pay attention. Problem is if it looks like you are actively trying to avoid the $10K limit, the bank has to alert the feds so they can check to see if you are laundering money..... things you learn from being on a federal grand jury.
Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
10y
@Account Closed I completely disagree. The investor is the one paying so they should get the say in how they pay. If a fee is involved then it should be passed on to the investor in most cases by the GC. The GC still gets the same $$$ whether the investor pays via credit card, debit card, check, cash etc.
Investor · LaGrange GA · Member since 2014 · 121 posts · 55 votes
10y
@Bryan C. The person spending the money doesn't dictate what are acceptable methods of payment, it's the person receiving the money who chooses. Some restaurants don't accept credit cards, nor do most street vendors. Just because I have the funds available on my credit card doesn't mean that I should be able to use them with any and all vendor simply because I'm the one buying. A transaction is a mutual agreement, mutually meeting on terms etc.
I assume you have a bank in the states right? Can you setup an bill pay service online that your bank mails out on your behalf? There might be a few day delay, but usually it's within 5 business days. Additionally, you'll be able to pay funds larger than 10K (it will all be domestic).
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
10y
Take out a cash advance against the card if you don't possess the cash and need a loan.Send that cash by wire transfer.I have Quickpay from Chase bank for quick and easy payments into someone else's checking account.
Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
10y
I think some of u miss the point. Its not about who dictates what etc. The point of using the credit card is to allow more freedom with my cash in my bank account. What if I said I had 12 or 24 months interest free on that credit card? I would think it is a viable option to consider as long as in moderation and not over extending yourself.
Real Estate Broker | Investor | Property Manager · Plantation, FL · Member since 2015 · 228 posts · 68 votes
10y
@Brian C. I am a contractor and your guy shouldn't have any problems. What he should do on the transactions is send you a credit card authorization form, which would have information on the CC, your billing address, the amount you allow the contractor to charge, your signature and some verbiage on how you are authorizing his company to run your card. This is added protection for the contractor to prevent charge backs.
Your contractor is being a tad lazy. If he calls square, they should be able to tell him exactly what they require on large charges...
Also, being deployed, USAA may give you a super low interest personal loan for the rehabs too...
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
10y
John Anderson Quit giving advice that the poster does not need, he has a problem that needs resolving, why are you insisting on your solution that has nothing to do with the question at hand? If he wants to pay by credit card for heavens sale, he can and he will! He does not need to adopt to your system just because you're used to it.
Bryan C. You can have your contractor setup different gateways on credit cards, many will take the business, especially because they get certain % for transactional fees from you or your contractor. His main commercial bank is the first stop, he can do virtual terminals, I suggest avoiding more than 10k invoice, it will trigger federal regulations with regards to money laundering act, unless your contractor's bank statements "regularly" get those sums, they'll be covering their butts and do some lame actions to the contractors account itself (ie bring him in to answer questions, or even to the extent of closing accounts, etc). Square or Paypal are virtual banks, but same regulations apply, but they have less manpower or knowledge to deal with customers.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
10y
John Anderson I might not have much experience as you but i have been in business 10 years which is above average. I do credit card transactions both incoming and outgoing, you don't know this but if you're a vendor and you accept cc from one person and not the other, you can be sued for profiling. I have done several thousand incoming and outgoing credit card transactions, wire transfers, bank drafts, telegraphic transfer, echecks, draws against SBLCs, all of them ranging from hundreds to 45k. if you are smart, you will know that the poster and his GC had been doing this, if you still don't get it, the GC is already accepting cards. with that said, if I'm way on the left field, I don't think you're not even close to the stadium. maybe we should hear your experience being old to the business.
Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
10y
Thanks @Manolo D. for actually reading what I am saying. The GC accepts credit card and has been. Just having issues finding the right avenue. We were doing Square but the recent over $10k locked that account up. So we learned to not go above $10k. We have the ability to to Paypay & my Furnace/AC guy is invoicing via Quickbooks. So I know those work. I am not familiar with "His main commercial bank is the first stop, he can do virtual terminals"...?
@Account Closed, your advice is appreciated but I dont think you are reading/listening to the issue at hand.
Anyone have other suggestions of methods they have done to pay via credit card? I like having a few other options as backup.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
10y
Bryan C. Almost all banks have their own "Merchant Account", that means that the bank themselves will loan or let you buy a virtual terminal or Point Of Sale device for actual swiping (like a card reader for smartphones but the bulky in-store devices), whichever the client prefers. I do prefer virtual terminals (on-screen data entry). Check the link below for Chase bank. However, to protect yourself and contractor, have him do an Credit Card Authorization Form (downloadable online) and preferrably with your ID for transactions larger than 5k (for my standards). Virtual banks have small control over operations and they are absolute on their system/manual vs that of commercial banks which are geared for corporate transactions such as the thing you are trying to accomplish.
Virtual banks are Paypal, square, capital one (i think they have physical bank now). There are also CC processors out there that specializes in things like tobacco online sales or alcohol, you might want to setup an account with them if all fails, they are expensive but creative and some are scams, but you have that option.
https://commercesolutions.jpmorganchase.com/lp/lr_ps.html?mkwid=oZcdNGho_dm%7Cpcrid%7C109898416586%7Cpkw%7Cvirtual%20terminal%7Cpmt%7Ce%7Cslid%7C%7Cpub%7Cgoogle%7C&gclid=CjwKEAjwoPG8BRCSi5uu6d6N5WcSJABHzD8FxfIXtlY-vi-TJFkN15AurcCB090yDZPNvkI0zncxIhoCv5zw_wcB
Real Estate Professional · Charleston, SC · Member since 2016 · 1 post · 0 votes
10y
add his bank information to your account and transfer the money directly to his. I use USAA and have several accounts that I can deposit money from there. might be difficult with the credit card though. good luck