Security, Compliance Essential as Payment Fraud Escalates

Protecting against payment fraud in multifamily is becoming increasingly important. Online payment channels have become the norm, and were especially valuable to apartment residents last year during the pandemic, following a nationwide trend. Across the U.S., web debit ACH transactions grew 15% over 2019 and accounted for nearly a third of ACH transaction volume. And, through the first two quarters of 2021, ACH payment volume continues to spike with double-digit increases from the same period last year. Apartment reenters expect more self-service payment options A growing trend in multifamily payments is the expectation of more self-service payment options for consumers who have access through multiple devices and channels. Nearly all tenants polled in the 2020 NMHC/Kingsley Apartment Resident Preferences Report preferred to pay rent via automated online payment systems, including debit and credit cards. Nearly 40% favored a debit card; 24% a credit card. “This changes the expectation among residents and property managers,” said Nancy Crouch Morlini, Senior Vice President, Payments, at RealPage. “Sixty percent of apartment renters would prefer to pay rent by debit or credit card. This is quite the opposite of what we saw just a few years ago.” However, more online transactions are leading to a surge in fraud. The U.S. Federal Trade commission reports that, in the wake of increased online transactions last year, reports of consumer fraud topped 2.2 million. Consumers claim they lost $3.3 billion to fraud in 2020, up $1.8 billion from 2019. The need for tighter security and regulatory compliance in multifamily has never been greater. Investing in multifamily compliance, security Morlini says multifamily is faced with a few challenges as online payments – and payment fraud – continue to soar. Among them are increasing numbers of payment providers and payment options, as well as managing regulations and laws related to paymen...