Fees Management

Taking the credit

Is your school offering the option of credit and debit card transactions in its fee collection? Richard Bradley explains the benefits for both parents and schools

More schools are incorporating the acceptance of credit and debit cards as another option for parents when paying for termly fees, school trips and uniforms. There are benefits for both parties as an estimated 10 per cent of parents have doubts about their ability to meet costs and the remainder may have to juggle their finances or make further sacrifices to continue paying.

Michelle Taylor, bursar at Bradford Girls Grammar School, says: “It has now become an essential part of our fiscal policy. We have seen an improvement in our cashflow and have reduced time in chasing slow payers. A number of parents have also commented that they are extremely pleased with the additional facility, which allows them to spread the cost of the fees and also make immediate payments for uniforms and school trips.”

One parent whose daughters attend BGGS, has found this option invaluable and explained: “Being self-employed often means that my income can vary from month to month. Using my credit card last month offered the ideal solution to a short-term cashflow situation.”

Other choices
Most schools already offer various payment structures via standing orders, direct debit and cheques. However, occasions remain where parents appreciate the chance to use cards. It is increasingly common for the self-employed and where there are no immediate or easily accessible savings to tap into.

Kath Kirby, accounts manager at Windermere St Anne’s School, says: “Having a card-payment facility has proved very useful as an alternative method of payment for parents.”
 
The cost of setting up and running a card payment facility is low and, in most cases, can be fully recovered. Michelle at BGGS explains: “Our facility has been set up at little cost to the school as we have taken advantage of being able to add the bank fee onto each credit card payment.”

For schools already processing cards, it is worth undertaking a review of the rates to assess the possibility of reducing existing card processing costs.

Benefits for the school:
• no cost for credit cards – fee charged can simply be added to the invoice;
• reduced administration – payments can be taken in person, over the phone or by return of a payment slip;
• increased cashflow/improved debt management/collect late payments;
• customer service by offering parents a choice;
• overseas parents can pay in sterling or their own currency;
• payments arrive in your bank within 3-4 working days; and
• easy to set up with a choice of providers.

Benefits for the parent:
• more choice in how to pay bills;
• cashflow management;
• option to call school for payment of one off items; and
• overseas payers paying in their own currency will know the exact amount that will appear on their card statement.

Richard Bradley is managing director of Accept Cards Ltd. Richard can be contacted on richard.bradley@acceptcards.co.uk

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