Association Dues - HOA - ClickPay - all payment methods require a surcharge

[cinderbeau]

I'm in Minnesota, and I have paid my homeowners association dues with ACH from my bank account for years without an extra charge until last month.

I understand a charge for credit card transactions, but is it legal for my HOA collection company to charge for ACH transactions? They don't actually offer any online payment method that doesn't have an extra charge. That doesn't seem right.

 

[quincy]

I'm in Minnesota, and I have paid my homeowners association dues with ACH from my bank account for years without an extra charge until last month.

I understand a charge for credit card transactions, but is it legal for my HOA collection company to charge for ACH transactions? They don't actually offer any online payment method that doesn't have an extra charge. That doesn't seem right.

The fee probably originates with your bank not your HOA.

 

[cinderbeau]

The fee probably originates with your bank not your HOA.

Neither, it's from the company my association uses to process payments.
clickpay.com

To further support, I have asked my bank, CapitalOne and they told me it is not a fee they charge for eCheck or ACH. Also the fee listing on clickpay.com just lists a $3 charge for any ACH, so based on that generic post they can't know what bank you are paying with or what that bank would charge (but the bank doesn't charge anything for that...)

 

[quincy]

Neither, it's from the company my association uses to process payments.
clickpay.com

To further support, I have asked my bank, CapitalOne and they told me it is not a fee they charge for eCheck or ACH. Also the fee listing on clickpay.com just lists a $3 charge for any ACH, so based on that generic post they can't know what bank you are paying with or what that bank would charge (but the bank doesn't charge anything for that...)

A fee of around $3 for money transfers is an unwelcome fee but not unusual.

 

[cinderbeau]

A fee of around $3 for money transfers is an unwelcome fee but not unusual.

I agree with you, and if it was $3 from my bank I'd absolutely agree. But it's $3 that a 3rd party has decided to collect, and that is absolutely beyond my control. I had a choice when I bought this house, and committed to this HOA, to pay the HOA fee - yes, I bought this house. But I didn't agree to having a fee charged on top of my HOA payment to this third party debt collection service. What if ClickPay decides they want to charge $15 for a ACH transfer? $20? Why is $3 okay?

 

[LdiJ]

I agree with you, and if it was $3 from my bank I'd absolutely agree. But it's $3 that a 3rd party has decided to collect, and that is absolutely beyond my control. I had a choice when I bought this house, and committed to this HOA, to pay the HOA fee - yes, I bought this house. But I didn't agree to having a fee charged on top of my HOA payment to this third party debt collection service. What if ClickPay decides they want to charge $15 for a ACH transfer? $20? Why is $3 okay?

Well, you could always pay the old fashioned way, by check. Maybe that will irritate the HOA sufficiently that they will find an electronic method to collect payment that doesn't require a fee.

 

[cinderbeau]

I appreciate all your responses, but I think it avoids the core problem.

 

[quincy]

I agree with you, and if it was $3 from my bank I'd absolutely agree. But it's $3 that a 3rd party has decided to collect, and that is absolutely beyond my control. I had a choice when I bought this house, and committed to this HOA, to pay the HOA fee - yes, I bought this house. But I didn't agree to having a fee charged on top of my HOA payment to this third party debt collection service. What if ClickPay decides they want to charge $15 for a ACH transfer? $20? Why is $3 okay?

Do you have a way to pay in person? It is the transfer of funds between accounts that costs money.

I suggest you speak to your HOA board to see if they can work out a fee-less way for you to pay.

 

[cinderbeau]

It is 2024, we shouldn't have to pay with check, or cash - and the fact is that it doesn't cost this company, ClickPay, $3 to accept my ACH transfer from my bank, it's free to them. I would actually imagine it'd cost more, logistically, for them to have to process a paper check. My issue isn't with the $3, it's the reason behind it. And is it legal (this is a legal forum) for them to not offer any free option for a payment of a debt. They never offered me a free option, in person or electronic.

 

[LdiJ]

I appreciate all your responses, but I think it avoids the core problem.

There is always a fee involved in the electronic transfer of money. The issue is that many, if not most organizations absorb that fee and don't pass it along to their members/customers directly, but rather factor it into their overall prices/fees.

Every time you use your credit or debit card the company accepting your card has to pay a fee to the processor/servicer. The larger the company the smaller the percentage, but there is always a fee. The same applies to ACH transfers.

Apparently your HOA decided that it is now necessary to pass that fee on to the members instead of absorbing it. That is why I suggested paying the old fashioned way. If they have to deal with the hassle of making regular runs to the bank to make deposits they may rethink their decision.

 

[LdiJ]

It is 2024, we shouldn't have to pay with check, or cash - and the fact is that it doesn't cost this company, ClickPay, $3 to accept my ACH transfer from my bank, it's free to them. I would actually imagine it'd cost more, logistically, for them to have to process a paper check. My issue isn't with the $3, it's the reason behind it. And is it legal (this is a legal forum) for them to not offer any free option for a payment of a debt. They never offered me a free option, in person or electronic.

ClickPay is in business to make money. They are not a charitable service. They are the servicer that your HOA chooses to use. Your HOA needs to use a service to process electronic payments. All servicers are businesses that need to make money in order to exist.

 

[cinderbeau]

There is always a fee involved in the electronic transfer of money. The issue is that many, if not most organizations absorb that fee and don't pass it along to their members/customers directly, but rather factor it into their overall prices/fees.

Every time you use your credit or debit card the company accepting your card has to pay a fee to the processor/servicer. The larger the company the smaller the percentage, but there is always a fee. The same applies to ACH transfers.

Apparently your HOA decided that it is now necessary to pass that fee on to the members instead of absorbing it. That is why I suggested paying the old fashioned way. If they have to deal with the hassle of making regular runs to the bank to make deposits they may rethink their decision.

Let me remind you - this is not a debit or credit transaction. This is an eCheck, an ACH transaction, and my bank CapitalOne assured me there was $0 charged for this transaction/withdrawal.

 

[cinderbeau]

ClickPay is in business to make money. They are not a charitable service. They are the servicer that your HOA chooses to use. Your HOA needs to use a service to process electronic payments. All servicers are businesses that need to make money in order to exist.

I'm quite sure my HOA pays them for this service, why should I pay twice?

 

[cinderbeau]

None of you are answering my question from a legal perspective

 

[LdiJ]

None of you are answering my question from a legal perspective

We all are. You don't seem to understand the answers that you are being given.