Electronic Payment of Condo Fees

April 2014
Electronic Payment Processing, or EPP, is making limited headway in acceptance within condo corporations.

Despite EPP offering advantages for condo management, this solution may not serve the best interests of condo owners.

EPP offers condominium corporations a fast, easy, economical and secure alternative to receiving cheques for monthly common expense fees.

Condo owners typically complete a form that includes banking information and authorization for the condo corporation to have funds removed directly from a bank account or debit card, or charged to a credit card, in place of individual or post-dated cheques. The potential for fraud is dramatically reduced, possibly eliminated.

For condo corporations, acceptance of cheques has both labour and material costs. They provide a way for some to delay making their monthly payments. EPP eliminates these costs and the likelihood of collection problems.

For condo owners, EPP requires less effort, reduces costs and is more secure. NSF charges are eliminated and notification is provided when payments are made.

Condo corporations do not appear to be in a rush to embrace EPP. Perhaps this is because EPP is risky for the condo owner. It is more difficult to keep track of automatic payments. In the event that an improper amount or payment is deducted from an account, reclaiming funds does take time.

Cheques, while perhaps costlier to the condo corporation, appear to be a safer payment mechanism for condo owners.