This guide helps you resolve the most common payment issues in Famly. Most payment problems fall into a few categories with clear solutions.
💡 Important: Famly does not automatically retry failed payments. When a payment fails, you need to identify the issue and advise the parent to retry manually with corrected information.
Quick Troubleshooting Guide
Issue | Most Likely Cause | Quick Fix |
Payment shows "Failed" | Insufficient funds, expired card, wrong details | Contact parent, advise retry with correct details |
Payment shows "Requires Validation" | The bank needs a 3D security check | Parent must click "Validate" in Famly (5-day window) |
Parent claims they paid, but it's not showing | Wrong account, payment to a different setting, timing | Search by parent name, check the payment method, and verify settings |
Automatic payment didn't run | Parent not opted in, payment method not verified, insufficient funds | Verify opt-in status, check payment method status |
TFC payment failed | Wrong Ofsted ID, incorrect reference code, insufficient TFC balance | Verify Ofsted ID exact match, check reference code format |
Failed Payments
Understanding Payment Failures
When a payment fails, it will show as "Failed" in Finances → Payments. The parent will receive an email notification letting them know their payment failed. The parent can see the detailed reason for failure when they log in to the app.
The email parents receive says:
”Payment Failure"
Dear "Bill Payer Name",
There was a problem with your payment of "Amount" to "Site Name", and the payment could not be completed. Please try the payment again. If there’s still a problem, please contact your bank or card provider. If you have any questions, please send us a message at "Site Email"
Important to understand:
Failed payment does not count toward the parent's balance (they still owe the money)
Failed payment is not automatically retried by Famly
The parent must initiate a new payment manually
You should contact the parent and advise them on how to retry
You will find the details of the payment failure by either looking at the Bill payer balance
Or by navigating to the payments report and hovering on the failed icon
Common Failure Reasons & Solutions
1. Insufficient Funds
Error message:
"Insufficient funds"
What it means: Not enough money in the parents' bank account (for Direct Debit) or insufficient credit limit (for cards).
What to tell the parent: "Your payment couldn't be completed because there weren't sufficient funds available. Please check your account balance and retry the payment when funds are available."
How the parent resolves:
Add funds to their account
Return to Famly → Balance tab
Click Pay Now and retry the payment
If this happens frequently:
Consider suggesting Direct Debit with automatic payments (scheduled, so parents can plan)
Discuss payment plan or custom amounts if cash flow is an issue
Consider whether the payment schedule aligns with when parents receive income
2. Payment Declined / Card Declined
Error messages:
"Payment declined" "Not permitted"
What it means:
Bank declined the transaction (fraud prevention, limit reached, etc.)
The card issuer blocked the transaction
The card has restrictions or limitations
What to tell the parent: "Your card was declined by your bank. This could be for several reasons - fraud prevention, daily limit reached, or restrictions on the card. Please check with your bank or try a different payment method."
How the parent resolves:
Contact their bank to ask why the transaction was declined
Ask the bank to allow the transaction
Try a different card
Retry payment
If the bank is blocked for fraud prevention:
Some banks block online transactions by default
The parent may need to notify the bank that they are making a legitimate payment
The parent can try again after confirming with the bank
3. Card Expired
Error message:
"Payment method expired"
What it means: The card has passed its expiration date.
What to tell the parent: "Your card has expired. Please update your payment method in Famly with your new card details."
How the parent resolves:
Check the card's expiration date
Remove the old card from Famly
Add a new card with the current expiration date
Retry payment
4. Incorrect Card Details
Error messages:
"Invalid CVC/card number/zip code" "Authentication failed"
What it means:
Card security code (CVV) incorrect
Card number entered incorrectly
Postcode/zip code doesn't match bank records
Card details couldn't be verified
What to tell the parent: "The card details couldn't be verified. Please double-check you've entered your card number, security code, and billing postcode correctly. The postcode must match what your bank has on file."
How the parent resolves:
Check their bank statement for the correct billing address
Carefully re-enter card details
Verify card number, expiry date, CVV, and postcode are correct
Try again
Common mistakes:
The parent recently moved but hasn't updated their address with the bank
The parent entered their home address, but the card is registered to their work address
Typos in postcode or card number
5. Card Not Supported
Error message:
"Card not supported"
What it means:
Card type not allowed for this transaction type
Card has restrictions (e.g., prepaid card, gift card)
This specific card doesn't support recurring payments
What to tell the parent: "This card cannot be used for this type of transaction. This sometimes happens with prepaid cards, gift cards, or cards with restrictions. Please try a different card or contact your bank."
How the parent resolves:
Try a different card
Contact their bank to ask about card restrictions
Try Direct Debit instead
6. Authentication Required / Authentication Failed
Error messages:
"Authentication required" "Authentication failed"
What it means:
The bank requires a 3D security check
The authentication process failed or wasn't completed
Payment interrupted during security check
What to tell the parent: "Your bank requires additional security verification for this payment. Please retry the payment and complete the verification step when prompted."
How the parent resolves:
Retry the payment
Complete the 3D security check when their bank requests it
Don't close or refresh the page during verification
See Payments Requiring Validation for detailed guidance.
7. Invalid Account (Direct Debit)
Error messages:
"Invalid account" "Not authorized"
What it means:
Bank account number or sort code incorrect
Account closed
Account doesn't support Direct Debit
Direct Debit mandate was cancelled
What to tell the parent: "There's an issue with your bank account details. The account may have been closed, the details may be incorrect, or your Direct Debit mandate may have been cancelled. Please check your account details or set up a new payment method."
How the parent resolves:
Remove the old Direct Debit method from Famly
Verify the bank account is open and active
Add the payment method again with the correct details
Wait for verification (if using Direct Debit)
Retry payment
Why this happens:
The parent closed their bank account
The parent cancelled the Direct Debit mandate with their bank
The bank closed the account
Incorrect account number or sort code entered
8. Card Issuer Not Available
Error message:
"Card issuer not available"
What it means: The card issuer's systems are temporarily unavailable—usually a temporary technical issue on the bank's end.
What to tell the parent: "Your bank's systems are temporarily unavailable. Please wait a little while and try again later. If the issue persists, contact your bank."
How the parent resolves:
Wait 15-30 minutes
Retry payment
If still failing, try a different card
Contact their bank if the problem continues
9. Processing Error / Unknown Error
Error messages:
"Processing error" "Unknown error"
What it means: Something went wrong that doesn't fit the standard error categories. Could be a temporary technical issue.
What to tell the parent: "There was a technical issue processing your payment. Please try again. If it continues to fail, try a different payment method or contact us for help."
How the parent resolves:
Wait a few minutes
Retry the same payment method
If still failing, try a different payment method
Contact you if the issue persists
When to escalate: If the same parent gets this error repeatedly, or if multiple parents report it, contact support as it may indicate a wider technical issue.
Stuck or Pending Payments
Payment Stuck on "Pending" for Several Days
What "Pending" means: Payment has been created but hasn't started processing yet.
Normal pending duration:
BACS Direct Debit: 3 business days (mandate verification)
Cards: Should never be pending more than a few minutes
TFC: Should never be pending
If payment is pending longer than normal:
For Direct Debit:
Check if this is parent's first Direct Debit payment
First mandate setup takes 3 business days
This is normal / just need to wait
Check if the payment was created before the mandate was verified
Payment will stay pending until the mandate is completed
Should auto-process once mthe andate is ready
If pending for 4+ business days:
Something is wrong with the mandate verification
Ask the parent to remove and re-add the Direct Debit
Double-check bank details are correct
Payment Not Showing
"Parent claims they paid, but I can't find it"
Troubleshooting steps:
1. Search by parent name
Go to Finances → Payments
Use the search box to search for the parent's name
Check all payment statuses (remove any status filters)
2. Check the date range
Payments might be outside your current view
Expand date range to last 30 days
Check if the payment was made earlier than the parent remembers
3. Verify which child/account
If a parent has multiple children at your setting, check all accounts
If the parent has multiple bill payer accounts (split siblings), check both
4. Check payment method
Ask the parent which payment method they used
Filter by that payment method
Some parents confuse where they made the payment (their bank app vs Famly)
5. Verify they paid through Famly
The parent might have paid via bank transfer instead of Famly
Check if the payment went directly to your bank account
If so, you need to record the payment manually
6. Check if the payment failed
The parent might not have seen the failure notification
Search for failed payments from that parent
7. Verify the correct setting
If you manage multiple settings, check the correct one
The parent might have paid at a different location
Still can't find it?
Ask the parent for:
Screenshot of payment confirmation
Date and time of payment
Amount paid
Payment method used
Any confirmation email they received
Contact support with this information
Automatic Payment Failures
Understanding Automatic Payment Behaviour
Critical to know: Famly only attempts automatic payments once. If an automatic payment fails, Famly does not retry it automatically.
When automatic payment fails:
Payment shows as "Failed" in Famly
Parent receives notification of failure
Parents' balance remains unpaid
The parent must manually retry the payment
Your role when automatic payment fails:
Identify why it failed (see failure reasons above)
Contact the parent and explain the specific issue
Advise the parent to fix the issue and retry manually
Consider if the pattern suggests a need for a different payment method
Common Reasons Automatic Payments Fail
Insufficient funds:
The parent didn't have enough money on payment day
The most common reason for automatic payment failures
Card expired:
Parent's card expired, but they didn't update it
Remind parents to update cards before expiration
Mandate cancelled:
The parent closed their bank account or cancelled their Direct Debit
Parent needs to set up a new payment method
Card declined:
Bank blocked transaction (fraud prevention, limits)
The parent needs to contact their bank
TFC-Specific Issues
TFC Payment Failed: "Provider Details Don't Match"
Error message:
"The Childcare Provider's (CCP) details don't match those found in the TFC system."
What it means: Your Ofsted ID, Care Inspectorate ID, or Nursery Registration Number doesn't match what HMRC has on file.
What to do:
Go to Settings → Finances → Invoicing and payments → In-app payments → Tax-Free Childcare
Verify your ID is entered exactly as it appears on the official website
Check for:
Extra spaces
Wrong capitalisation (usually all caps)
Including or excluding "EY" prefix (some Ofsted IDs have it, some don't)
Typos in numbers
Look up your correct ID:
England: https://reports.ofsted.gov.uk/
Scotland: https://www.careinspectorate.com/
Northern Ireland: https://www.familysupportni.gov.uk/
Update to exact match
Have the parent retry the payment
⚠️ This error affects ALL parents trying to pay with TFC, so you'll want to fix it right away
TFC Payment Failed: Incorrect Reference Code
What it means: The parent entered the wrong child reference code when linking their TFC account.
What to do:
Have parents log into their TFC account at gov.uk
Navigate to Account → Manage account
Scroll to the bottom to find: "the payment reference for your child is..."
Reference format is:
First letter of first name
The first letters of surname
Five random digits
Example: JSMI12345 (for John Smith)
Have the parent re-enter the correct reference in Famly
Retry payment
Parent Can't Link TFC Account to Famly
Common issues:
1. Wrong Ofsted ID in Your Settings
See "Provider Details Don't Match" above
2. Parent Using Mobile Device
TFC linking sometimes has issues on phones/tablets
Have the parent try on a desktop computer instead
3. Parent Has Multiple TFC Accounts (Multiple Children)
Each child has a separate TFC account
The parent must link each one individually
For automatic payments, you need separate bill payers (see Split Bill Payers Guide)
4. Parent's TFC Account Not Active
TFC account might be suspended or closed
The parent needs to resolve with HMRC first
Check at childcarechoices.gov.uk
5. Parent Access
The parent must be a contact for the child and
The parent is used as at least one invoice recipient for one of the child’s bill payers
TFC Payment Shows as Complete but Didn't Arrive
What to understand: Famly only knows if payment was initiated via HMRC, not if it arrived in your bank account.
What to check:
Check payment timeline:
Under £2,000: 2 hours during banking hours (Faster Payments)
Over £2,000: 4-5 business days (BACS)
Check the bank statement carefully:
TFC payments show individually, not grouped
Shows as "NS&I" (National Savings & Investment Bank)
For £2k+, shows child reference number instead of NS&I
Check the correct bank account:
Verify payment went to the account registered with HMRC
The parent may have the wrong account linked to TFC
If the payment has not arrived within the timeline:
Have parent check their TFC account transaction history
Verify payment actually left the TFC account
If left TFC but didn't arrive, contact HMRC Childcare Service here
Bank Account Issues
Payout Not Received
What to check:
1. Verify payout timeline
Cards: 1 business day after payment completes
Direct Debit: Payment completes in 4 days, then payout the next day
TFC under £2k: 2 hours during banking hours
Account for weekends and bank holidays
2. Check payout report
Go to Finances → Reports → In-app payment payouts
Find the payout in question
Check status: Pending, In Transit, or Completed
Verify the expected arrival date
3. Check the bank statement carefully
Payouts show as "Famly" (unless you customised the descriptor)
TFC shows as "NS&I" or child reference number
Amount is payment minus fees
4. Verify the correct bank account
Check which account is registered in your in-app payment settings
Payment goes to the account you specified during setup
If you changed accounts, update in settings
If payout is "Completed" but not in your bank:
Check with your bank (may be processing on their end)
Wait one more business day
If still missing after that, contact support
Payout Amount Doesn't Match Expectation
What to check:
1. Verify fees were deducted
Payouts are payment amount MINUS fees
Check fee report: Finances → Reports → In-app payment fees
Example: £100 payment with £1.70 fee = £98.30 payout
2. Check if multiple payments are in payout
Payouts are bulk (all payments from the same day)
Click into payout to see a breakdown of included payments
Add up all payments and subtract all fees
3. Check for disputes or late failures
If a previous payment was disputed, the amount will be deducted from the payout
Check the "Completed" section of the payout report for adjustments
Disputes show as negative amounts
Unexpected Deduction from Payout
Possible reasons:
1. Dispute/Chargeback
The parent disputed a previous payment
Funds withdrawn from your account
Shows as a negative amount in the payout breakdown
What to do:
See Handling Refunds & Disputes for the process
2. Late Payment Failure
Rare: payment succeeded initially but failed later (e.g., DD returned)
Shows as a reversal in payout
What to do:
Check the payment history for the reversal
Contact the parent about the failed payment
Parent needs to retry with a valid payment method
3. Previous Refund Issued
You issued a refund through the Stripe dashboard
Deducted from next payout
Shows as negative
Quick Reference: Error Messages
Error Message | Meaning | Solution |
Insufficient funds | Not enough money in the account | Advise the parent to retry when funds are available |
Payment declined | The bank rejected the transaction | Check with the bank, try a different card |
Card not supported | The card has restrictions or limitations | Try a different card or payment method |
Payment method expired | Card past expiration date | Update card details, retry |
Invalid CVC/card number/zip code | Card details incorrect | Re-enter card details carefully |
Invalid account | Bank account issues | Verify account details, set up a new payment method |
Not authorized | Debit not authorised | Contact the bank, try a different method |
Authentication failed | Payment authentication failed | Retry payment, complete security check |
Authentication required | Payment needs authentication | Complete 3D security verification |
Not permitted | The card issuer declined | Check with the bank, try a different card |
Card issuer not available | Issuer temporarily unavailable | Wait and retry, or try a different card |
Processing error | Generic processing issue | Wait and retry, contact support if it persists |
Unknown error | Unclear issue | Wait and retry, try a different method if it persists |
Need Help?
Get in touch at support@famly.co or use the in-app chat. We're here to help.