Automatic payments allow parents to set up recurring payments that run on a schedule you choose. This helps reduce the time staff spend chasing payments and gives your nursery more predictable and stable cash flow. Once set up, payments run automatically for parents who opt in, while you stay informed about each payment cycle.
How Automatic Payments Work
When you enable automatic payments, the process works as follows:
You choose your schedule
You decide when payments should run, such as weekly, monthly, or on invoice due dates.Parents opt in
Each parent chooses whether to enable automatic payments for their account.Payments run automatically
On your scheduled day, Famly charges all parents who have opted in.Everyone receives notifications
Parents receive advance notice before payments are taken, and you receive updates on the payment run.The funds arrive as usual
You receive payments according to the standard processing timeline for each payment method.
💡 Want to make automatic payments mandatory? You can require parents to set up automatic payments before they can access Famly in your settings. See the In-app Payments Complete Setup Guide to enable this option
Set Your Payment Schedule
To configure automatic payments:
Go to Settings → Finances → Invoicing and payments → Automatic payments
Select Edit
Choose Your Schedule
Select the option that best suits how your nursery invoices families.
Weekly
You choose a specific weekday, such as every Monday. This works well if you invoice weekly or if attendance varies from week to week.Monthly
You can choose the first working day, the last working day, or a specific date between the 1st and 28th. This option works well for consistent monthly fees.On Invoice Due Date
Payments run whenever an invoice becomes due, and only the amount due up to that date is charged. This works well if you use multiple invoice schedules or irregular billing patterns.
💡 Working days refer to Monday to Friday. Payments may still run on bank holidays even if your nursery is closed.
How to Pick the Right Schedule
When deciding on a schedule, it helps to consider both parents’ circumstances and your nursery’s financial needs.
When do parents get paid?
Try to align payment dates with when most parents receive their income. This is typically at the end of the month or the beginning of the month.
When do you need the funds?
Consider your cash flow requirements. Card payments usually arrive within one to two working days, while Direct Debit payments typically take four to five working days. Factor this timing into your schedule so funds arrive when you need them.
What Gets Charged
The amount collected depends on the schedule you choose.
On weekly or monthly schedules
When using a weekly or monthly schedule, Famly collects the parent’s entire outstanding balance. This includes all unpaid invoices, regardless of their due dates. If a parent has multiple invoices, some due now and some due later, the full balance will still be collected.
On the invoice due date schedule
When using the invoice due date option, Famly only collects amounts due up to that specific date. Invoices with later due dates are collected when their own due dates arrive.
Example:
Invoice A due on March 15th for £500
Invoice B due on March 31st for £600
Payment run on March 15th collects £500
Payment run on March 31st collects £600
Vouchers and Automatic Payments
If parents receive vouchers as a recurring monthly payment or funding contributions on their invoices, such as council funding, you can decide whether automatic payments should include those amounts. To configure your voucher settings for automatic payments:
Head to your Settings
Go to Finances, then Invoicing and payments
From here, click on Edit in the Automatic payments section
Under the payment initiation settings, click on Voucher options to open the voucher menu
In the Include vouchers dropdown, select an option
Available options for vouchers
Do not include vouchers
Any vouchers configured for the bill payer are ignoredInclude all past and future confirmed payments
All vouchers are included, regardless of date or whether they are unconfirmed, and when they were created. This is the option most nurseries choose.Up to and including the month after the billing date
This includes vouchers (including unconfirmed vouchers) for the current month and the following month.Up to and including the month of the billing date
This includes vouchers (including unconfirmed vouchers) for the current month only.
Setting Up Automatic Tax-Free Childcare Payments
Parents can automate Tax-Free Childcare payments for their child by following the Automate TFC Payments guide.
💡 Important note about Tax-Free Childcare and multiple children. Parents can only automate Tax-Free Childcare payments for one child per bill payer account. If they want to automate payments for multiple children, you will need to split their bill payer account
Parents can still make manual Tax-Free Childcare payments for multiple children without splitting accounts. If parents ask about automating Tax-Free Childcare for multiple children, see the Split or Duplicate a Bill Payer guide for instructions.
When Automatic Payments Fail
It is important to note that Famly only attempts each automatic payment once. If a payment fails, the parent must retry it manually.
For help resolving errors, see the Troubleshooting Payment Issues guide.