In terms of running a business. It's a no brainer. Giving consumers the option to pay for goods and services with credit card is a win-win. Especially for childcare and activity providers. We ask all of our providers if they would like to have the ability for their parent community to pay for activities by credit card. Here's why.
Please note that the following article assumes that concerned providers are searchable online and have a website.
Offering credit card keeps parents happy!
Here at Enrolmy, our main priority is developing this awesome activity management software, but we also enjoy busting local myths along the way! One myth that we've stumbled upon, more than once, has been a restricting mindset that parents don't have credit cards and/or don't want to use their credit card to pay for their kids activities online. But the $4,000,000.00 in credit card payments from parents that we've seen processed through Enrolmy, says very differently. An Enrolmy holiday programme provider who used to have payments trickle in, agreed to take credit card payments for the first time. Over night they recieved 40 bookings into their programme - the most registrations they had ever recieved in one day. Not only that, but each booking had been fully paid with amounts of $290. Parents were happy to pay by credit card. And after that, so was the provider!
1 in every 3rd parent that couldn't immediately pay for their child's activity online, found it frustrating and difficult to make their booking. Our user experience trials explained that when parents registered for activities online, but were then only given options to pay later via bank transfer or cash, it frustratingly lengthened their booking process. We've seen from our own business processes that 80% of parents who are frustated with a booking process and find it long-winded, drop off from completing their booking and move on to booking with another provider. This is why at Enrolmy, we have altered and developed our booking platform to encourage prompt payment via credit card.
Parents want to have the confidence that their booking has been completed and finalised. A huge component to this is the ability to pay for activities immediately with credit card. The chart below displays our findings that a credit card option was the most promising feature for a provider to offer when securing a booking. Even suprisingly over an instant booking confirmation notification!
We love busting myths.
Offering credit card = a steadier cash flow!
We work with activity providers in numerous industries.
- Holiday Programmes
- Schools and sports co-ordinators.
- Classes / lessons / workshops
- Alternative activity providers: Outdoor education / camps / programmes
In each industry we've trialled whether credit card payments benefit providers, their accounting processes and if this actually leads to a positive cash flow. We drew some exciting statistics from our database and found that across all five different industries, the percentage of payments made by credit card and the average time for invoices to be paid were greatly positive! Please note that we will not share identifying details of the providers that these statistics derive from, for privacy purposes.
Our statistics show that for schools that enable parents to pay with credit cards...
- On average, 94% of their invoices are fully paid within two hours of registering their child using the Enrolmy platform online.
For holiday programmes.
- On average, 97% of invoices were fully paid within a day of registering their child using the Enrolmy platform.
- On average, 88% invoices were fully paid within 15 hours of registering using the Enrolmy platform.
For alternative activity providers.
- On average, 95% of invoices were fully paid within 13 hours of registering using the Enrolmy platform.
We then withdrew statistics from our database on providers who did not choose to enable credit card payments.
0% of invoices were fully paid upon registrations made online and transactions were finally being made, on an average of 15 days after the parents initial booking.
For community centres.
0% of invoices were fully paid upon registration and transactions were finally being made, on an average of 11 days after the parents initial booking.
0% of invoices were fully paid upon registration and transactions were finally being made, on average of 3 weeks after the parents initial booking.
The comparison shows that providers who offer parents the ability to pay for their activities by credit card online have seen a steadier cashflow - no matter the industry or activity variation that's being offered.
Enrolmy explainer of a provider that does not take credit card payments versus provider; Jerry, who does!
Reconciling Credit Card Payments With Enrolmy
Along with busting myths, we break down barriers! One barrier that has stopped activity and child-care providers from taking credit card payments, has been the task of reconciling these payments for their administration team. Here at Enrolmy we have made this process simple and automated. When a parent pays for an invoice via credit card, then that invoice is automatically reconciled in Enrolmy. The record of this transaction flows through to Xero, therefore omitting the need to manually check off invoices. The cash from credit card transactions show up in the providers bank account for them to code where they need it. Voila! Credit card reconciliation made stress free!