Parents can pay their invoices through Famly in several different ways.
This guide explains how each payment method works, when to recommend each one, and what to expect, so you can help parents choose the option that best suits them.
Payment Method Comparison
Below is an overview of how the different payment methods compare.
Payment method | Money arrives in your bank | Fees* |
Debit card/credit card | 1–2 business days | 2.8% |
Credit card (non-domestic/Amex) | 1–2 business days | 3.5% + $0.20 |
ACH | 2-5 business days | Fee taken by center:
Fee passed to payer: |
* If the mandate is already active. If not, another 1-2 days but up to 10 days verification is needed
You can choose whether your site or your payers cover payment fees:
If your site pays the fees: The fee is deducted from the total before the payout reaches you
If parents pay the fees: The fee is added to their invoice and shown as a separate line
💡 In some states, passing fees on to parents is not allowed, so be sure to check your local regulations
Payment fee examples
If your site pays the fees
Invoice total: $100
Fee (2.8%): $2.80
Payout received: $97.20
If parents pay the fees
Invoice total: $100
Fee added: $2.88
Total charged to parents: $102.88
💡 If parents use autopay, the fee may not be shown before the payment is processed
Debit and Credit Cards
How it works
Card payments work like standard online card payments and are familiar to most parents.
Manual payments
Parents can click Pay now in their Balance tab, enter their card details (or use a saved card), and complete the payment instantly. You will typically receive the payout 1 business day later.
Automatic payments
Parents can save their card details and opt in to automatic payments. Famly will then charge the card automatically on your scheduled payment day. Card payments process instantly, and you will typically receive the payout 1 business day later.
Important to know about debit and credit card payments
Card payments are one of the fastest and most familiar payment options for parents. They work similarly to other online card payments, and they are often a good choice when parents need to pay quickly.
Key things to be aware of:
Instant processing: Card payments complete immediately.
Fast access to funds: Payouts typically reach your account within 1 business day.
Instant confirmation: You can see straight away whether the payment has been successful.
No setup delay: Parents can pay immediately without waiting for mandate verification.
Supports quicker debt collection: Faster processing can reduce the time spent chasing overdue balances.
Fewer delays compared to Direct Debit: Instant processing reduces uncertainty and waiting time.
Familiar to parents: Card payments are widely used and may encourage more parents to use in-app payments.
FSA (Flexible Spending Account) cards are payment cards that use pre-tax funds to cover eligible healthcare-related expenses.
FSA cards are linked to Flexible Spending Accounts, which are employer-sponsored benefit programmes
These accounts allow employees to set aside pre-tax dollars to pay for qualified healthcare expenses
You can use an FSA card in the same way as other payment methods, as long as the charges meet eligibility requirements.
Apple Pay and Google Pay
Parents using Famly on a browser (not the mobile app) can pay using Apple Pay, Google Pay, or Link from Stripe. These options do not change the payment method itself. They just allow parents to use securely saved card details for a quicker checkout, and the same card fees apply as for standard payments.
ACH Direct Debit
How it works
ACH Direct Debit authorises Famly to collect fees directly from parents' bank accounts.
The Direct Debit setup process
Some banks require an extra verification step before the ACH mandate becomes active. When this happens, Stripe sends one or two small deposits - called microdeposits - to the parent's bank account. The parent then confirms these deposits to prove they own the account.
Here's what to expect:
Microdeposits typically appear in the parent's bank account within 1–2 business days
The parent receives an email from Stripe with a link to a verification page
On that page, the parent enters either:
A 6-digit code starting with "SM" (from a single $0.01 deposit), or
The exact amounts of two small deposits labelled "ACCTVERIFY" on their bank statement
Once verified, the mandate is active and payments can be collected as normal
⚠️ Important: Parents have 10 days to complete the verification. If they don't verify within this window, the setup expires, and they'll need to add their bank details again.
💡 Tip: Let parents know to check their bank statement within a couple of days of adding their account. The deposits are small and easy to miss.
Good to know:
Verification attempts are limited - parents get up to 10 attempts for code-based verification and 3 attempts for amount-based verification
If the parent provided their email address during setup, Stripe handles the notification emails automatically
Automatic payments
If the parent is enrolled in automatic payments, Famly initiates the payment on your scheduled payment day. The payment takes 4 business days to process, and you receive your payout 1 business day later.
Manual payments
Parents can also choose Direct Debit when paying manually when clicking Pay now in their Balance tab, enter their ACH details (or use a saved ACH direct debit payment method). The same processing timeline applies.
Important to know about ACH Direct Debit
ACH Direct Debit is a common payment method for childcare fees and is often a good option for settings that want to keep payment fees low.
Key things to be aware of:
Requires a one-time setup: Parents cannot pay immediately when they first add Direct Debit, as the mandate must be verified by their bank. This usually takes 1-2 business days but can take up to 10.
Slower processing: Once active, Direct Debit payments typically take around 2-5 business days to complete.
US bank accounts only: This option is only available to parents with a US bank account.
Disputes cannot be challenged: If a parent disputes a ACH payment through their bank, the funds are automatically returned under the Direct Debit Guarantee. For more information, see Handling Refunds and Disputes.
Manual vs Automatic Payments
Parents can pay either manually or through automatic payments, depending on what they prefer.
Manual Payments
How it works
Parents choose when to pay. They open Famly, click Pay now, select a payment method, and the payment is processed.
When parents may prefer manual payments
Manual payments may be better for parents who:
Prefer control over when payments are made
Have irregular income
Want to review each payment before it goes through
Prefer actively managing their finances
💡 Direct debit payments are authorised once by the parent, and then collected from their bank account when a payment is due. While debits can technically be initiated manually, in Famly they are normally collected automatically based on billing schedules
Automatic Payments
How it works
Parents opt in once. Famly then charges their saved payment method automatically on your scheduled payment day. Parents receive an email notification 1 day before the payment is taken, and they can opt out at any time.
When parents may prefer automatic payments
Automatic payments may be better for parents who:
Prefer a set-it-and-forget-it approach
Have regular, predictable income
Want to avoid missing payment deadlines
Do not want to keep track of payment dates
Your Payment Run Schedule
You control when automatic payments run. This schedule applies to all parents who opt in.
You can choose:
Weekly, on the same day each week
Monthly, on the first working day, last working day, or a specific date
On the invoice due date, meaning payments are taken when invoices become due
For guidance on configuration, see Set Up Automatic Payments.