Merchant Category Code 6513 covers real estate agents, brokers, and property management companies handling rental payments, commissions, and property-related fees. This category involves large transaction values and deposit handling creating specific risk considerations.
Key Information
This guide addresses real estate payment operations where commission structures, deposit management, and complex transaction timing create unique merchant challenges.
Typical Business Types
Real Estate Brokerages
#1
Companies employing agents to facilitate property sales and purchases earning commissions.
Property Management Firms
#2
Businesses managing rental properties and collecting rent on behalf of property owners.
Independent Real Estate Agents
#3
Individual licensed agents facilitating property transactions and earning sales commissions.
Payment Processing Information
Transaction Types
1
Rental Payment Collection
Monthly rent payments collected on behalf of property owners from tenants.
2
Security Deposits
Upfront deposits held for potential damages or unpaid rent at lease end.
3
Property Management Fees
Monthly service fees charged to property owners for managing rental properties.
4
Application Fees
Charges for processing rental applications and background checks.
5
Real Estate Commission Deposits
Partial commission payments or retainer fees from property sale transactions.
Common Payment Methods
Credit and Debit Cards - Standard payment method for rent and fees
ACH Bank Transfers - Automatic recurring rent payments
Examine chargeback ratios focusing on deposit and fee disputes
Evaluate property verification procedures before listing or collecting payments
Review tenant communication and authorization documentation practices
UW Questions Business
What real estate services do you provide and how many properties do you manage?
Do you primarily handle sales commissions or rental management?
What procedures verify your authority to collect payments for properties?
UW Questions Payments
How do you collect and process monthly rent payments from tenants?
What percentage of revenue comes from recurring rent versus one-time fees?
How do you handle security deposit accounting and returns?
UW Questions Fraud
What procedures verify property ownership and rental authority before accepting bookings?
How do you protect tenant payment information in online portals?
What measures prevent payment redirection fraud?
UW Questions Compliance
Are your real estate licenses current in all jurisdictions where you operate?
How do you comply with state security deposit laws including holding and return requirements?
Do you maintain separate trust accounts for client funds?
UW Questions Chargebacks
What is your chargeback ratio and what are the primary dispute reasons?
How do you document security deposit deductions and property condition?
What procedures address tenant concerns before disputes escalate?
UW Questions Infrastructure
What property management software do you use for payment processing?
How do you track and account for security deposits separately from rent?
Are your online payment portals secure and regularly updated?
Ongoing Monitoring
Transaction Monitoring
Monitor security deposit deduction patterns and return timeline compliance
Track dispute rates by property and property manager
Review payment portal access logs for unauthorized activity
Compliance Checks
Maintain current real estate licenses and registrations
Ensure security deposit handling complies with state requirements
Stay updated on fair housing and data privacy regulations
Security Updates
Use secure payment portals with strong authentication
Implement verification procedures for payment changes or redirections
Deploy systems protecting tenant financial information
Risk Assessment
Review property verification procedures to prevent listing fraud
Assess security deposit documentation quality against dispute patterns
Monitor for payment portal vulnerabilities and unauthorized access
Merchant Communication
Emphasize importance of clear security deposit documentation and tenant communication. Provide guidance on preventing listing fraud and payment redirection schemes. Support real estate professionals in navigating trust account requirements.
Overwhelmed with Applications?
Gratify offers instant merchant application enrichment to get the full picture of your customers in real-time
