Your daycare payment processing has to be more than a one-trick pony
Partnering with a payments processor for your daycare or preschool can help you greatly reduce your bad debt and collect payments from families more quickly than ever before. Expand the payment options you can accept, as well the locations from which you can take payments—including at your front desk, over the phone or online. Implementing credit card processing at your daycare operation shows families your business is customer oriented and technologically savvy.
Reducing the mental burden associated with remembering to pay will provide peace of mind as parents drop off their most important asset.
Accepting credit card payments provides additional value to businesses
Some of the benefits of implementing payments processing at your preschool or daycare include:
- Speedy payment collection
- Improved customer service
- Enhanced cash flow
- Efficient and accurate accounting
Expand your payment options for parents
In today’s competitive daycare landscape, making your facility as attractive as possible to parents is important to capturing their business. Part of what attracts parents to daycare providers is flexible payment options that allow them to pay how they want to pay and that fit within their budgeting. With daycare payments processing, here are some of the payments options you can offer:
- One-time POS sales at your front desk – credit card, debit card, eCheck and mobile
- Automatic charges for recurring payments – such as to cover weekly or monthly tuition charges
- Online payments – via your personalized, secure web portal
1. Accepting credit and debit cards
Accepting payment types beyond checks helps to simplify daycare operations and simplifies the lives of parents. Caregivers will no longer have to remember that today is the day to find the checkbook. Daycare providers that provide multiple ways to pay will be a step ahead in meeting the needs of todays' consumers.
2. eCheck processing
With eCheck services, you can easily convert all your paper checks to electronic ACH transactions right at your POS terminal—eliminating a trip to the bank to deposit checks and guaranteeing the funds are present in the parent’s account. What’s more, you’ll likely see those check funds in your bank account a bit sooner than with depositing a paper check.
3. Online payments
Accepting electronic payments online or via recurring billing can help to eliminate cash flow interruptions. When parents pay for daycare fees with a credit or debit card, it also helps eliminate the potential for employee fraud.
Offer parents the ability to pay for your childcare services through a web portal using a credit card, debit card or ACH transfer from a bank account. Email invoices and provide an easy “click to pay” link that simplifies payments.
How recurring payments boost revenue
Undoubtedly, most of your clients are regular, repeat customers who pay for services month after month. For this reason, recurring payments are a great opportunity to capture more payments, increase your cash flow and streamline your back-office processes. Your client provides card information once and the recurring payment engine stores it securely and automatically bills the client on the frequency that you set up.
Benefits of recurring payments include:
- Increase your accounting efficiencies
- Reduce your late payments
- Accept additional payment types, including ACH transfer from a checking account
- Boost your cash flow
- Improve your customer loyalty by making payments simple, easy and worry-free
- Eliminate your costs and time related to manual billing
- Customize your billing schedule
- Shift burden of protecting sensitive payments data to your processor
- Access to a secure online portal with reporting and detailed transaction data, 24/7/365
- Maintain compliance with PCI-DSS requirements
If you decide to use recurring payments, make sure you have a straightforward, comprehensive contract (terms of service agreement) for clients to fill out and sign. In this contract, include details on when funds will be withdrawn from the account, billing period and termination clause. Signed contracts help you maintain a good business relationship with the families who use your daycare center, and also help to protect your business in the event of a chargeback.
The partnership between recurring payments and Account Updater
When using recurring payments, there's always potential for transactions to be declined or 'break'. This can happen for several reasons; a client’s credit card expires, the related account is closed or if the card is involved in a breach, the card could be reissued with a new card number.
With Account Updater, your recurring payments system will automatically receive the new account number ensuring the payments cycle won’t be interrupted. Other benefits of Account Updater service are:
- Card information is automatically updated
- Maximize customer lifetime values by keeping more customers on recurring payments, without breakage
- More approvals means more revenue and less work for employees
- Encryption protects clients’ card data
Keeping your data secure
Large-scale data breaches happen each year so safeguarding your customers’ sensitive payments data is more important than ever. According to a June 2017 Vantiv ShopTalk consumer survey, 45% of consumers are aware of recent merchant data breaches within the past six months. What’s more, 29% of consumers believe it’s likely their card information will be stolen as part of a data breach in the next 2 to 3 years. As a merchant, it’s your job to keep card data secure – to protect your clients and your daycare center’s reputation.
Comprehensive reporting that’s easy to understand
Many payment providers provide access to user-friendly online reporting to view all transaction data at a summary level, as well as the ability to drill down into details on specific transactions or card accounts. You’ll also be able to use reports in order to generate emailed or paper statements of individual accounts and streamline your daycare accounting and payment collection.
Simplify your daycare’s accounting practices
Gone are the days when you or your staff members have to manually post payments or drive to the bank to make deposits. Because payments are automatically posted to the correct child’s account, the possibility of human clerical error is greatly reduced and your staff is freed up to spend more time tending to the children. Contact us for more information on how you can take free up your staff's time with better payment processing.