How auto pay improves payment reliability in after school programs

Do programs that use auto pay actually reduce the time spent on administrative work? Can requiring auto pay for your programming really improve payment reliability? These are the questions we set out to answer — so we analyzed data from 41 Arux child care programs. We often talk about the power of integrated payment processing. When payment processing is integrated into an after school program software platform, administrators and district financial teams streamline operations and increase transparency across all programming. It enables your after school team to focus on program development while ensuring thoroughness and accuracy in all program financials.

One benefit of integrated payment processing, for both you and your families, is the ability to apply/require auto pay for ongoing program payments, commonly found in after school programs.

Auto pay systems are a tool for reliable payment collection, helping families deliver payments on time, which reduces administrative work by eliminating the need to continually issue invoices and back-and-forth communications between staff and families to collect payments.

When billing is connected to schedule and rate types, automatic payments provide districts and families with greater insight and control over their accounts. 

The result? Creating a better overall experience with your program.

But can requiring auto pay for your programming really improve payment reliability? We wanted to see, so we analyzed data from 41 Arux child care programs, which reveals how auto pay technology is improving payment reliability and administrative efficiency.

Auto pay usage in after school programs

Arux recently surveyed 41 child care programs nationwide, covering 13,785 parent accounts across programs with different payment policies. The study compared:

• 20 programs requiring mandatory auto pay

• 21 programs without

A distinction with past due accounts

The numbers tell the story of a correlation between past-due accounts and the absence of auto pay. 

Programs operating without auto pay mandated experience a 12.10% past-due rate in payments. In contrast, programs that utilize mandatory auto pay see this rate plummet to just 4.95%. This means that programs without auto pay enabled are nearly two and a half times more likely to face payment delays, leading to fewer funds and more administrative tasks required to collect past-due payments.

Success adapting auto pay when mandatory

When it comes to account enrollment in auto pay systems, the data shows a significant difference between mandatory and optional programs. Programs that require auto pay achieve an impressive 79% enrollment rate. In these instances, the other 21% of users may have auto pay requirements waived for families receiving assistance or other forms of discounts. 

Programs that make auto pay optional see only 35.5% adoption.

Things to consider with auto pay

While the benefits are clear, successful auto pay implementation requires considering various factors:

• Program demographics and specific community needs

• Effective monitoring systems for auto pay removal when necessary

• Clear communication strategies to ensure family understanding and compliance
  

Programs should give special attention to any of their programming that serves specific populations, including:

• Grant-based programs

• Low-income communities

• High-assistance populations

It's simple: reduce time spent tracking down late payments with auto pay

When examining the findings among our users, it’s clear that auto pay systems significantly reduce payment delays and streamline financial management for child care programs. 

With past-due rates decreased by more than half and auto pay enrollment rates more than doubling under mandatory systems, the case for implementing auto pay in after school programs is stronger than ever.

For child care programs looking to improve their payment reliability and reduce administrative burden, auto pay isn't just an option – it's becoming a necessity in modern program management. 

To learn how we can help streamline financial operations in your program, let’s grab 15 minutes to chat.

💡 Are you an Arux user? Within Arux, auto pay offers benefits to both account owners and administrators by automating recurring payments, ensuring timely transactions, and simplifying financial management. Learn more about Understanding Auto Pay.