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Bill

LB 880

Prohibit residential landlords from prohibiting or charging extra fees for tenants' payments made by automated clearinghouse transfer

109th Legislature (2025-2026) Introduced by John Cavanaugh and 1 co-sponsor

Bill LB 880 prohibits Nebraska landlords from banning ACH rent payments or charging fees for tenants using electronic bank transfers.

Notice of hearing for February 04, 2026
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Bill Summary · LB 880

Legislative bill overview

LB 880 prohibits Nebraska residential landlords from blocking tenants' use of automated clearinghouse (ACH) transfers for rent payment or charging additional fees when tenants choose this payment method. The bill aims to standardize rental payment options and prevent landlords from imposing financial penalties on tenants who use electronic bank transfers.

Why is this important

ACH transfers are a low-cost, secure payment method that benefits both tenants and landlords by reducing payment delays and administrative burden. Prohibiting fee restrictions expands financial accessibility for renters who may lack credit cards or prefer direct bank transfers, while standardizing payment practices across the rental market.

Potential points of contention

  • Landlord processing costs: Landlords may argue that ACH transfers incur legitimate processing fees or require account setup, and restrictions prevent cost recovery
  • Payment guarantee concerns: Some landlords prefer credit card payments for guaranteed funds and chargeback protections; ACH transfers carry different fraud liability
  • Small landlord impact: Individual property owners managing single units may face disproportionate administrative burden compared to large property management companies with automated systems

Compiled from official sources — confirm details with the bill’s official record.

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