Famly offers speedier payments for parents by debit card, credit card, and direct debit directly in the app.
Parents can pay their outstanding balance in Famly with just a couple of clicks or automatically by direct debit without any manual work from you. Your financial reports and accounts will, of course, be updated in real-time.
Content of this article
- How it works - cards and direct debit
- Transaction timeline and payouts
- Access to setup guide
Famly charges a processing fee when using this feature but there are no additional cost besides that. When a parent pays their outstanding balance in Famly, the fee will be deducted before the money arrives in your Famly Pay account. You can see the fees below:
- BACS Direct Debit:
1% of payment amount, max £2, min 50p
- European Debit & Credit Cards (Excl. Amex):
2% of payment amount + 20p per transaction
- Non-European Debit & Credit Cards & Amex:
3.5% of payment amount + 20p per transaction
The parent pays £100
- by direct debit: 1% of £100 = £1. Payout to your bank account = £99
- by EU cards: 2% of £100 + 20p = £2.20. Payout to your bank account = £97.80
- by non-EU cards: 3.5% of £100 + 20p = £3.70. Payout to your bank account = £96.30
How it works
When the setup is complete and you've chosen which payment methods you'll accept, Famly Pay is activated in ready for the parents to use.
Parents can only pay the full outstanding balance of their account in Famly.
Debit and credit cards
When paying by debit or credit card, the parents will be asked to enter their card details - just like online shopping. A card payment receipt will show on the parent's account right away. Parents will instantly receive an error message if the transaction cannot be completed. Therefore, card payments won't show in Famly unless they are verified.
Parents can also save their card details in Famly and approve automatic charges to clear their outstanding balance. Automatic card payments will follow the transaction timeline of BACS Direct Debit payments.
BACS Direct Debit
Parents can setup BACS Direct Debit (DD). It can either be setup and used as a card, or it can be set to charge automatically which we recommend.
When a parent has setup DD and approved automatic charges, they will be included in a DD run (if their mandate is verified. It takes about 2-3 business days). You select the date you want the DD run to begin, and the parents who have setup automatic DD will be charged. Famly automatically sends an email about the upcoming payment 1 day prior to the billing date you've selected. Managers receive a notification in Famly at the same time.
When the payments have been processed by the bank, you'll get a payout of the total to your bank account.
The parents will receive an email confirming that they have been charged via Direct Debit.
Email to the parents
Your transaction is complete. You have been charged £X using BACS Direct Debit.
Bank Account: [bacs last 4 digits]
Mandate Reference: [bacs mandate reference]
Mandate Details: [bacs mandate url]
Payments using BACS Direct Debit are covered by the Direct Debit Guarantee: https://www.directdebit.co.uk/DirectDebitExplained/pages/directdebitguarantee.aspx
If you have any questions, please write [nursery email].
Transaction timelines and payouts
It takes about 4-7 business days depending payment method before a payout is showing in your bank account. This is mainly due to a 3 business day anti-fraud initiative by our payment provider. The money moves from the parent's bank account, to your Stripe account, to your bank account.
Possible statuses of payments
- Failed: The payment failed accompanied by an error message explaining why
- Pending: The payment has not been initiated yet - usually because it’s waiting for the payment method to be ready (such as BACS mandate to be verified)
- Processing: The payment has been initiated (“sent”) and Famly is awaiting the result
- Completed: The payment completed successfully
Manual card payments
The transaction of a manual card payment begins right away. If it fails, it will show immediately. Our provider holds the money for 3 business days due to an anti-fraud initiative. Therefore, you can expect the money in your account about 5-6 business days after the payment was made by the parent.
Automatic card payments
Parents can set a card as the automatic payment method. If a parent has done so, the automatic card payment will begin on the day of the month you select when setting up Famly Pay. It will charge the outstanding balance of the parent on that day.
The timeline is as follows:
- 1 business day before the run, Famly sends the parents an email informing them about the upcoming charge, and managers receive a notification in Famly at the same time.
- On the day of the run, Famly will withdraw the money from the parent's card and put it on your Stripe account. Our payment provider will then hold the money for 3 business days due to their anti-fraud initiative.
- 5-6 business days after the run, the money will be transferred from your Stripe account to your bank account. The speed of the money transfer varies from bank to bank.
Automatic direct debit payments
A automatic direct debit run takes place based on the day chosen when setting up Famly Pay. For a parent's DD mandate to be included in a DD run, it must have been verified at least 1 business day before the DD run begins.
The timeline is as follows:
- 1 business day before the run, Famly sends the parents with a verified automatic DD an email informing them about the upcoming charge, and managers receive a notification in Famly at the same time.
- On the day of the run, Famly will send a request to the banks to begin the transaction of the automatic DD payments. The payment will show on the parent's account in Famly as processing meaning that it has been initiated (“sent”) and that Famly is awaiting the result. The money is being transferred from the parent's bank account to your Stripe account.
- 2 business days after the run, automatic DD payments are completed and enter the 3-day anti-fraud period. The payment will show as completed in Famly meaning that it was completed successfully. The money is in your Stripe account.
- 3 business days after the run, you are informed about failed DD payments if any.
- 6-8 business days after the run, automatic DD payments will be included in the next payout. The money is being transferred from your Stripe account to your bank account. The speed of the money transfer varies from bank to bank.
You will receive bulk payouts for payments made on the same day. Payouts will show as 'Famly' on your bank statement.
Need help setting everything up? Check out our Famly Pay Setup Guide