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There is no publicly available, fee-free way to pay your rent or mortgage with a credit card. Due to bank interchange fees, accepting credit cards without a surcharge would mean most landlords and banks would lose 2-3% of the mortgage payment or rent due each month.

Even with that being the case, it can still make sense to utilize the tools that are available and query your own bank or landlord to find the highest rewards value available when paying your bills. Today, let’s look at the ways to pay your rent and mortgage with a credit card and earn big points and miles.

Fee-Free Possibilities

There are the rare apartment complexes and landlords who will accept a credit card via an online system or through their own small business with no added fee. Consider yourself very lucky if you have this ability. Any time I’ve gone apartment hunting, this is actually a question on my checklist because of the potential value in a year’s lease. If your rent is $1,200 and you pay with a Chase Freedom Unlimited Card earning 1.5 points per dollar, after 12 payments you’ll have earned 21,600 Ultimate Rewards points, worth $453.60 based on TPG’s valuations.

Likewise, you may occasionally find a landlord or even a bank willing to accept a debit card for payment with no added fee. Debit card interchange fees have been limited by the Durbin amendment, making it more tolerable as a form of payment. Due to the legislation, most rewards-earning debit cards have disappeared, but you may find a few out there from local credit unions or a product like UFB Direct offers.

UFB Direct offers the ability to earn 1 American mile for every $3 spent on a debit card.

Options for Paying Rent With a Credit Card

There are third-party service providers that will allow you to pay your rent, mortgage and almost any other bill with your debit or credit card. Fees range from 2.5-3% per credit card payment or a flat fee for payments made with debit cards.

Here’s a chart of third-party payment providers that accept credit cards, along with the respective fees.

Services to Pay Your Rent or Mortgage with a Credit Card:

Company Fees Cards Accepted
Plastiq Debit: 1%

Credit: 2.5% (occasional promotions)

American Express, Discover, Mastercard, Visa, JCP, Diners Club, pre-paid and gift cards
Radpad Debit: $4.95 for payments under $5,000/$9.95 for payments over $5,000

Credit: 2.99%

ACH (bank account) payments: Free

American Express, Discover, Mastercard, Visa, Apple Pay
Rentshare ACH payments: $1.95

Credit or debit: 2.99%

American Express, Discover, Mastercard, Visa
RentMoola Debit: $3.99

Credit: 2.99%

American Express, Mastercard, Visa
Venmo Debit: Free

Credit: 3%

 Discover, Mastercard, Visa

There are other providers like Venmo available which require both landlords and tenants to register in order to use the service. None of the ones I have scanned have lower credit card fees than Plastiq, which is by far the most popular service.

When Does It Make Sense?

The easiest time to justify adding an additional fee to your rent is when you need to meet a minimum spending requirement to trigger a sign-up bonus — especially with cards requiring $5,000 or more in a three- or five-month time period. A hefty rent or mortgage payment can make meeting that minimum a lot more feasible. Otherwise, simply calculate the value of the points or miles you’ll earn to see if they are worth more than the fee you’ll pay.

Unless you need all the charges you can get to meet a minimum spending requirement, most of the time extra fees are a losing proposition and not worthwhile. That said, when Plastiq has promos or if you get enough friends and family to sign up through your promo code (which gives you fee free dollars), you can come out ahead.

Online bill payment site Plastiq has the lowest fees for credit card payments and routinely runs promotions.

There is a card that can make it worth your while during a promo or when you have fee-free dollars: the Blue Business Plus Credit Card from American Express, since it earns 2x Membership Rewards points on the first $50,000 you spend each year. If you were to use this option to pay a $2,000 mortgage through Plastiq during a 2% promo, you’d be charged a $40 fee and earn 4,080 MR points. These points are worth $77.52 based on TPG’s valuations, which peg MR points at 1.9 cents apiece — and you could get even more value from them if you transfer them to certain loyalty program partners. If you aren’t on the Plastiq email list, I highly suggest you register.

Caution

Besides not earning a higher value from the points you earn compared to the fee you pay, there are a couple of things to keep in mind when considering paying your bills through these providers. The first is to make sure they don’t code as cash advance charges, which earn no rewards and have high interest rates. These providers claim to all be set up to ensure it doesn’t happen, but I always call my card issuer and request the cash advance fee be lowered as close to $0 as possible before completing a payment.

Second is the length of time it can take these payments to be completed. If the provider is mailing a physical check to your bank or landlord, you can’t request the payment the day before it’s due. Give yourself plenty of leeway and monitor the payment closely until you have confirmation it was received.

Bottom Line

Unless you’re blessed with a landlord accepting payments without a fee, there are only a few circumstances where I’d recommend paying your rent or mortgage with a credit card. If you have access to a rewards-earning debit card, I’d inquire if Venmo payments count for your debit card rewards program and ask your landlord to accept payment via the app. Otherwise, I would keep paying your rent or mortgage with a credit card as a back-up plan for meeting minimum spend on new credit cards.

Do you pay your rent or mortgage with a credit card?

Featured photo courtesy of Caiaimage/Paul Bradbury via Getty Images.

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