The Western Australian Government's Department of Energy, Mines, Industry Regulation, and Safety (Consumer Protection) recently issued an industry bulletin as a warning to real estate agencies, landlords and tenants about the risks of using third-party payment platforms for real estate transactions.
The bulletin highlighted the risks of third-party payment providers for paying rent, instead of making payments directly into an agency's trust account. The cause for concern was due to a number of providers which operate nationally across Australia, but may use separate entities and overseas banks.
While the warning was released by the WA Government, it's absolutely relevant for all Australian states and territories.
According to Consumer Protection's bulletin:
"There are a number of third party payment platforms that operate nationally, providing property management and tenancy software services to the real estate industry, including in Western Australia. The software is an automated payment system and can involve another separate entity and overseas banks. When third party platforms are used for real estate transactions, the money is paid into overseas banks and not into the agent’s nominated trust account.”
If a third-party payment platform doesn't use a trust account in Australia when handling real estate transactions, there may be elevated risks to agencies, landlords and tenants. These risks could involve money going missing or the loss of fidelity protections under respective state and territory legislations.
Consumer Protection recommended exercising appropriate due diligence, as well as communication and disclosure requirements from agents, when using third-party payment providers for real estate transactions.
Unlike some other third-party rent payment providers which may be fully or partly owned and based overseas, or may send money to overseas banks, everything RentPay does and every entity we deal with is located right here on home soil.
RentPay is true-blue Australian. We're proud to be a fully Australian-owned company with all of our staff and operations based locally.
We only deal with trustworthy financial partners, like PayPal and Novatti, plus our tenants' funds are kept safe with ANZ Bank – one of the largest and most trusted banks in the country.
RentPay's parent company, Rent.com.au, has been around for over 15 years as Australia’s largest website dedicated to renters with the #1 rated real-estate app. As a listed entity on the Australian Securities Exchange, Rent.com.au (ASX: RNT) maintains additional rigorous compliance, reporting and oversight measures.
Since its inception, Rent.com.au and RentPay have upheld a higher standard than required when it comes to regulatory and compliance obligations in Australia, including holding several financial licences and industry memberships.
RentPay holds an Australian Credit Licence (ACL number: 541127) and is an authorised representative (ARN: 001286725) of Flexewallet Pty Ltd (Australian Financial Services Licence: 448066). Both of these licences are governed under Australian Securities and Investments Commission (ASIC).
RentPay is also a member of the Australian Financial Complaints Authority (AFCA).
When funds for rent and tenancy-related payments are made to an agency via the tenant user's RentPay digital wallet, they are held and protected in an ANZ Bank trust account that adheres to regulatory and compliance requirements. These funds can only be accessed by the respective tenant, with strict security controls.
The privacy and security of our users' data – both tenants and agencies – are also a top priority. RentPay's data is stored in Australia and we implement industry best practice security measures. Read more in our Privacy Policy.
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