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non-sufficient funds

Dealing with Declined Daycare Payments

Parent with Empty PocketsHas the “empty pocket syndrome” ever struck at your child care center, daycare or preschool? It goes something like this: You accept payment from a parent, in good faith, and provide quality care for their children. But later, you discover there wasn’t enough money in their account to cover their check or auto-draft payment, or their credit card ended up being declined.

So, the parent’s pocket was empty and now so is yours. Ouch!

In a perfect world, your child care business would never have to deal with payments gone bad, sometimes known as non-sufficient funds or NSF transactions. But still, there is good news. There are ways to minimize your risk and simplify the process of reversing a payment, when needed. You may even want to charge the parent an extra processing fee and resubmit a request for payment. Continue reading

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