Child Care Payment Collection

How to Increase Successful Payment Collection by as Much as 90%

Why spend hours calculating daycare tuition and fees or dealing with bounced checks and other collection headaches? The best way for your daycare business to increase successful payment collection is by investing in childcare software. Daycare for software businesses include fee collection programs that dramatically reduce the time and effort you spend on collecting and processing payments by employing the use of through electronic funds transfer (EFT).

Quality child care software provides you with a means of processing payments three different ways. The first is through recurring ACH (Automatic Clearing House) transactions which are bank to bank transactions. Payments automatically deducted from the client’s checking or savings account and deposited into your daycare’s business account. The second is through reoccurring credit card transactions where the client’s credit or debit card is automatically charged on a recurring basis.  And finally, you can process payments through POS (Point-of-sale) transactions which involve a credit or debit card swipe on-site.

Every family within the software has a ledger. The daycare software will store and manage a complete history of charges, deposits and payments for each family. As well, most childcare software programs have a feature that allows automatic billing to charge balances due for an individual family or all families at once to create a batch of payments. Then you can simply request payment with the click of a mouse and the data is transmitted for processing. The payments are then automatically recorded on the family’s ledger.

Even if the family chooses not to participate in automatic electronic funds transfer to pay tuition and fees, child care software is still a handy tool. Some software programs will automatically send bills, reminder notices, and late notices, saving you the hassle, time and energy.  Childcare software will also generate a variety of reports to help you communicate with parents regarding child care fees and payments.

The two key advantages of automated payment collection:

  • Timely, Accurate, and Efficient Payment Collection: Daycare software enhances cash flow. Childcare software promotes a more reliable cash flow by reducing the occurrence of late payments and bounced check fees thereby also reducing collection issues. With electronic billing and automatic payment collection, the financial aspects of your daycare business run more efficiently and accurately.
  • Improves Customer Service. Parents appreciate automatic tution collection because it saves them time and energy. Most Families are pleased that they pay tuition fees securely and conveniently. The happier the client, the more clients you retain. As well, satisfied clients tend to spread the word; happy clients are a great marketing tool.

Studies have shown that the use of childcare software with electronic billing and payments increase successful payment collection by 90 percent or more. Daycare software is a wise investment that will streamline your daycare management functions thereby enhancing your daycare business and satisfying the families you serve.

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