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Use PayPal ‘recurring’ payments & never ask for a daycare payment again

How to create PayPal recurring payments and never ask for a daycare payment again

One of the best things I’ve ever done for my daycare is to make it mandatory for my daycare parents to sign up for PayPal Recurring Payments. And get paid automatically on a weekly or monthly basis. But the absolute best part is I never have to ask for a daycare payment again and neither should you.

There’s nothing worse than having to ask for daycare payments on a weekly basis only to receive excuse after excuse. I like that comparison that if this was their paycheck they would expect it to be given to them without question. And if they didn’t get paid they would feel frustrated having to ask for payment time and time again.

This is when you have to put your foot down when it comes to YOUR daycare policies. Here’s how I did it…

Include a parent/provider contract

I created a mandatory parent/provider contract to be signed-off by both parties. The part about tuition fees and payments reads:
Tuition fees are payable in advance by every Monday of each week even when your child is absent from the program. All families are required to sign up for recurring weekly payments using our PayPal recurring payment plan. This method of payment is now mandatory. If you are not already on the recurring payment plan, Shadow Oaks Daycare will email you the information needed to begin regular automatic payments. Please note any weekly tuition past due will also be requested at this time so that payments are brought to current status. Only one credit/debit card will be accepted per child. Failure to stay current with weekly payments and/or active on the PayPal recurring payment plan will result in termination from the program.

What is PayPal Recurring Payments

Recurring payments is where you can charge your customer’s debit or credit card on a set payment plan whether daily, weekly, monthly, or yearly. Your daycare parent does not need to have a PayPal account in order to subscribe to recurring weekly payments. The set amount whether weekly or monthly can later be changed by the daycare provider if the daycare parent’s billing amount changes. For instance, PayPal will allow you to change the billing amount setup on the payment plan. So, if a daycare child moves from part-time care to full-time care or vice-versa you can change the amount on the subscription. Or if the provider decides to change their rates. Just make sure you get permission from your daycare parents first, preferably in writing, so there is no confusion on either end.

Setup PayPal Recurring Payments

  1. Login to your PayPal from your desktop and go to Tools > All Tools > Recurring Payments.
  2. Choose create an Automatic Billing Button.
  3. Change the button type to Subscriptions.
  4. Give your button an item name, like Shadow Oaks Daycare (Full-Time).
  5. Enter the billing amount for each cycle. For instance, if you charge $300/week for child care then enter $300.
  6. Change the billing cycle to weekly, or monthly if you charge your daycare parents on a monthly basis.
  7. Under step 3, do you need your customer’s shipping address? Answer, no.
  8. Click create button.
  9. Here you can copy the link to add your button to your webpage if you have one. Or select the “email” tab and copy the code to include the link in your email.

An example looks like this: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=VMBKK5CPYXMQN, you can attach the link to a subscription button in your email. Or you can add it like a hyperlink and say subscribe here.

Email daycare parent(s) to start the payment plan

To have your daycare parents sign up for the PayPal recurring plan.

Hi Sharon & Doug,
I hope you are having a good weekend! Below is the link we discussed to subscribe to recurring weekly child care payments for Harrison.
If you could do this by or on Monday, October 16th that would be great. Otherwise the payments will be processed late every week.
If you have any trouble with it please let me know.

Thanks so much for doing this…I think it will be a time saver for all of us. 🙂

Elyssa McGregor
Shadow Oaks Daycare

Just know if your daycare parent starts the recurring payments on a Tuesday then every Tuesday you’ll get paid on the weekly billing cycle. So I asked my parents to either pay in advance on Saturday, Sunday, or Monday so that their payments were not late every week.

How to create PayPal recurring payments and never ask for a daycare payment again

Use PayPal recurring payments & never ask for a daycare payment again

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Interestingly enough, I'm a home daycare provider at Shadow Oaks Daycare in Thousand Oaks, California. Before Shadow Oaks Daycare, I worked at a promotional advertising company in the advertising specialty industry as a System Analyst and Cost Accountant. On my spare time I like to create websites using WordPress.

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