In a world defined by technology, people are constantly seeking faster ways to communicate and simplify their lives. It’s true: If it’s easier to do something, people will do it.

One way homeowners’ associations (HOAs) can leverage technology and improve the lives of residents, board members, and community managers is by offering online payment options for community-related expenses. Mobile payments are used by more than two billion people globally, and your HOA needs to keep pace. Read on to learn about online payment systems and why your HOA should use one.  

HOA Online Payment System Benefits  

Think your HOA doesn’t need an online payment system? Think again. How you handle HOA payments may work now, but it’s probably not the most efficient or cost-effective method. Online payment systems are usually well worth the cost. Here are five ways an online payment system benefits your HOA:

1. Increases performance and financial accuracy.

Maintaining your HOA’s financial stability is a critical task for managers and board members, and there isn’t room for mistakes. Online payment systems can minimize manual errors, ultimately protecting the community and promoting financial accuracy. Plus, electronic records reduce the likelihood of lost checks and open invoices.

2.Saves time.

Online payment systems can take tedious tasks off leaders’ plates. No one enjoys spending hours collecting delinquent payments or manually calculating late fees; however, with an online payment system, you can calculate delinquent payments and fees with just a few clicks of a button. When you leverage an online payment system, you’ll have more time to complete other key tasks and achieve your goals.

3. Decreases expenses.

Before online payments, it wasn’t uncommon for HOAs to spend over $500 a month on administrative supplies, postage, printing, and shipping. Because online payment systems don’t require hard copy documentation or supplies, and statements and records can be sent via email or through an app, you can significantly cut these expenses and free up room in your budget.

4. Fewer late payments.

Many online payment systems allow users to schedule automatic and recurring payments and use multiple payment methods, including credit cards, debit cards, or electronic checks. Due to this automation and convenience, residents are more likely to stay on top of their HOA fees and payments—leading to fewer conflicts and headaches.

5. Adds value and competitive edge.

Implementing an online payment system can add value to your community. This tool is a great selling point for potential residents. Plus, it can help your HOA stay competitive with other communities in the market.

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What To Look for When Choosing an Online Payment System

It can be tough to make the right online payment system choice for your community. Here are five things to consider when selecting an online payment system for your HOA:

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Bank

HOAs should evaluate their bank’s processes. For example, is the bank able to accept electronic payments and bank transfers from a third-party online payment system? Can it handle recurring payments, electronic withdrawals, and any other bank requirements?  

Payment service provider

With so many payment service providers out there, it’s important to select the one that works best for your community's needs. Think about the following before choosing your payment service provider:

• Payment methods. Can the service provider accept multiple forms of payments, including debit cards, credit cards, and electronic checks?
• Integration. Is the service provider compatible with your current HOA system and software? What steps are necessary to have a successful integration?
• Support. Does the service provider have support options, such as a 24/7 customer support line?

Fees  

While some providers may come at a lower cost, they often have hidden fees and fewer customizable features. Find out if the payment service provider has additional fees for payments, withdrawals, transfers, and other transactions. And check to see if there are any hidden fees included in the overall cost.

Adaptability

Reflect on your community’s demographics and level of adaptability. Ask these questions and use the responses to inform your decision:

• Will your community be able to adapt and understand how an online payment system works?
• What percentage of your community has access to Wi-Fi, a computer, or a mobile phone?
• Does your common area or community center offer computer access with free Wi-Fi?
• Is your HOA board able to provide guidance for those who may be less familiar with technology?

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Make Online Payments Easy with TownSq

Using an online payment system comes with countless benefits for your HOA, including increased performance, saved time, decreased expenses, fewer late fees, and added value. When choosing your online payment platform, it’s vital to do your research and select one that can meet your needs.  

TownSq, the industry’s leading all-in-one digital platform, offers financial management solutions to HOA residents, board members, community managers, and management companies. In addition to our online payment capabilities, users can:

• Track accounts receivable and accounts payable
• Run financial reports
• Process delinquencies
• Maintain checking, savings, money market, and other account reconciliations
• Manage electronic funds via secure transfer
• Monitor investment funds and rollover dates

To explore our most-loved financial services and online payment features, request a FREE 30-day trial of TownSq here!

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