Simplify and Safeguard: How Payment Technology Protects Timeshare Owners and Their Assets
by Matthew Engblom, Vice President, Timeshare HOA Banking, Western Alliance Bank
Every year, timeshare associations collect millions of dollars in maintenance fees, and much of it still arrives the way it did decades ago: by paper check, dropped in the mail or handed across a front desk. Though these methods were once considered the safest, today they face real risks.
Fraud is climbing, mail theft happens and the manual processes many resorts rely on can lead to costly mistakes. The good news is that the technology built to simplify how an association collects and manages payments is also one of its strongest defenses against fraud. Simplification, done right, can be a method of protection.
The Rising Cost of Fraud
The Federal Trade Commission reports that consumers lost a record $16 billion to fraud in 20251, a 25% jump over the prior year. Paper checks aren’t immune to this risk. Left in a mailbox or on a desk, they invite theft, alteration and forgery. For an association funded once a year, one stolen batch is a serious problem.
How Electronic Payments Simplify and Protect
Moving payments online removes much of a timeshare association’s exposure with a simple, protected process. Through the association’s encrypted e-payment portal, owners can use single sign-on (no new password) and pay by e-check, debit card or credit card. Those who still prefer to mail a check can, but the association no longer depends on paper.
Benefits go beyond convenience. Staff can see at a glance who has paid, manage payment methods and view real-time balances and owners can receive statements and notices electronically.
The Case for a Lockbox
When it comes to paper checks, a bank lockbox offers efficiency and security. Western Alliance Bank’s Las Vegas lockbox processes roughly 40,000 checks on a busy day, many from timeshare and other community associations. Each is verified against multiple criteria, such as the owner’s name paired with a contact or owner ID. Once verified, the next periodic check payment is recognized automatically.
A lockbox also builds in resilience. If a hurricane, ice storm or shipping disruption affects a resort area, payments still flow to a secure, off-site facility instead of piling up at a damaged office. Cash flow is maintained in order for the staff and vendors to continue to get paid while repair crews can be brought in.
Layering Safeguards
The strongest protection pairs good technology with good habits. A banking partner that understands the timeshare space can help you put several safeguards in place, such as:
- Positive Pay: An automated tool compares authorized checks and ACH debits against those presented, flagging mismatches before they clear.
- Dual control: Policies establish that one administrator enters a transaction and a second approves it, so no one person can move money alone.
- Multifactor authentication and strong, unique passwords: These simple steps stop most account-takeover attempts.
- Call-back verification: Staff should confirm any request to change payment instructions by calling a known number on file, never a new one supplied in an email.
- Daily monitoring: Review online banking often, so unauthorized transactions are caught within tight windows governing recovery.
Simplification as Long-Term Asset Protection
Protecting an association is not only about preventing fraud. It also means safeguarding the property’s future through accurate records, preserved liquidity and long-term value.
Many timeshare associations rely on separate systems for accounting, inventory and receivables, creating potential discrepancies that may increase the risk of errors and delays. Integrating those systems with your bank reduces repetitive work and improves visibility.
Better visibility also supports sound financial planning. Timely information about collections, balances and upcoming obligations helps boards and managers align funds with reserve studies, engineering reports and capital plans. Funds can remain protected while still being available when needed, rather than tied up when a major repair comes due.
Simpler systems also strengthen fiduciary oversight, providing clearer reporting, coordinated accounts and defined approval processes.
The result is a more resilient association: Owner information is better protected, payments can continue during a disruption and funds are positioned to support the property over the long term. By bringing payment technology, fraud controls and financial expertise together, an association can reduce complexity while strengthening protection for both current and future owners.
Contact Western Alliance Bank’s Association Banking Group2 to learn more about how our specialized expertise can support your timeshare association lending, deposit solutions and fraud prevention.
- https://www.ftc.gov/news-events/news/press-releases/2026/06/ftc-data-show-people-reported-losing-3-point-5-billion-imposter-scams-2025
- https://www.westernalliancebancorporation.com/expertise/homeowners-associations
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About Western Alliance Bank
Western Alliance Bancorporation (NYSE: WAL) is one of the country’s top-performing banking companies and has ranked as a top U.S. bank by American Banker and Bank Director since 2016. Its primary subsidiary, Western Alliance Bank, is a leading national bank for business that puts customers first, delivering tailored business banking solutions and consumer products backed by outstanding, personalized service and specific expertise in more than 30 industries and sectors. With more than $90 billion in assets and offices nationwide, Western Alliance excels at helping businesses of all sizes capitalize on their opportunities to solve today and succeed tomorrow. For more information on our offerings, subsidiaries and affiliates, visit westernalliancebank.com/associations, Member FDIC.