Having A Hard Time Trying To Figure This One Out

[daycare]

So heres the issue:

I have several families that pay one month in advance and they use the childcarepay.com through MMK. As some of you may be aware, it takes 5 full business to deposit into your account.

It is stated in my childcarepay.com contract that fees are due for deposit on the due date, that payment must deposit on that day.


So I offer a 5% discount if you pay your fees monthly, one month in advance. I send out an invoice on the 5th of each month for the following month...EX: june 5, I will send out the invoice for the month of July.

I also send out reminders about 10 days out from the due date which is the last friday of every month, one month in advance.

Well, I have two families that never pay on time. They wont make the payment until the wednesday before the friday that it is due. So this means taht i won't get the money until the following wednesday, 5 days late including weekend.

I wanted to charge late fees, but thought well is it fair to do so because they are making a full monthly payment in advance?? hmmm Becuase if you think about it, if I don't get paid until wednesday, then they are getting free DC on monday and tuesday. Also, just because i get confirmation that the payment has been made from the childcarepay.com website does not mean that the payment will go through.

My next thought was well don't charge a late fee, but tell them that if they are late again that I won't offer a 5% discount ($50.00) any more?

How would you deal with this one??? UGH

[TBird]

My next thought was well don't charge a late fee, but tell them that if they are late again that I won't offer a 5% discount ($50.00) any more?

How would you deal with this one??? UGH

I like this idea!!! The $50.00 is probably the incentive to prepay each month anyway. Then again, I'll defer to the ladies because I don't have a lot of experience with online daycare payments.

[MyAngels]

My next thought was well don't charge a late fee, but tell them that if they are late again that I won't offer a 5% discount ($50.00) any more?

This is what I would do. The discount disappears the moment the invoice is not paid by the due date.

[JaydensMommy]

Do they know it takes 5 days to process? I would definitely start charging late fees. Mine are $10 for everyday its late, after three days no more child care is provided until everything is paid. If you don't want to charge late fees then stop offering online payments.

[daycare]

Do they know it takes 5 days to process? I would definitely start charging late fees. Mine are $10 for everyday its late, after three days no more child care is provided until everything is paid. If you don't want to charge late fees then stop offering online payments.

Yes they know it's 5 days to process payment. I don't want stop offering online payment as it's very for all parties involved. I don't gave to keep track of their payments for them they have their own online account through the site that does that all for them.

Thanks for the responses I think I will void the discount if not paid on time!