There are transaction fees for online payments. The default setting is parents paying the transaction fees in their entirety. There is an option Kinderlime can enable that will allow the school to absorb these fees so the parents do not see them. The third option is to split the transaction fees with parents. This article offers some ways in which to split the transaction fees with parents.

Go to Billing then Billing Settings to see the current fee schedule

For the sake of this article, we will use the following example:

Bank Account (ACH): $1.95

Credit Card: 2.95% + $1.95

 

Splitting the Bank Account Fee: The school and parent each pay a portion of the $1.95.

  • Option 1: The parent pays the whole fee and the school applies a credit for $0.95 to the parent’s invoice if they pay online via bank account
  • Option 2: The school pays the whole fee and creates a fee for $1.00 to the parent’s invoice if they pay online using bank account

 

Splitting the Credit Card Fee: To keep things simple we recommend that the school pays the entire percentage and the parent pays the fee or vice versa.

  • Option 1: Parent pays the 2.95% and the school pays the $1.95 fee. Leave the settings in their original configuration (the parents will be charged all fees) and credit the parent invoices with $1.95 if they use online payments
  • Option 2: School pays the 2.95% and the parent pays the $1.95 fee. Reverse the fee settings (so the school absorbs all of the fees) and then add a charge for $1.95 to each parent account that uses online payments

 

How to add these charges: You can adjust charges to the parents account by using a preset charge or a billing import.

  • Option 1: Preset charge – Go to Billing and choose Charges in the grey menu, select the +Add Charge button, choose “Preset Charge” and fill out the details. Keep in mind the fee must be (-) for credits. These preset charges can be applied as invoices are created in Family Billing
  • Option 2: Billing import – See this Billing Import article for details. This is a good solution if you have a lot of people who pay online. This is also a good option if you use Bulk Operations. Note: Billing imports can only be use to apply fees (not issue reimbursements) so this can only be used if the school pays the fees and charges the extra to the parent.

 

If you decide the reverse the transaction fees, email us at contact@kinderlime.com

 

 

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