2. Three Learning Objectives
1. Understand the utility to the school and to
parents of accepting credit cards for tuition.
2. Understand the three key approaches to
accepting tuition by credit card without
adding a budget item.
3. Learn what other schools are doing and
experiencing when accepting tuition by credit
card.
3. Why? What is the
potential gain of
accepting tuition by
credit card?
7. Epayment vs. Paper Check
Rich Data
Payments deposited 24 hours
Accurate information
Digital entry
Manually Enter Data
payments deposited in 1 week
Missing information
Hard to read
8. Financial Stress
Need an intro slide - how will
you open presentation?
Reduce Financial Embarrassment &
Stress on Parents
9. NAIS asked
362 families
that applied for financial aid
how they were planning to
pay for tuition
10. Alimony/Child
Support, 7%
School Aid, 62%
Family Paycheck,
Liquidating Assets,
Grandparent
Gifts, 10%
9%
Personal Savings,
Home Equity
Loan, 12%
35%
Credit 59%
Cards,
11%
source: www.nais.org
12. For parents with good credit
0% Intro APR on
Balance Transfers
and Purchases for 15
months
0% APR for 18 months
and no late payment
fees ever
5% cash back at
Amazon.com or
Zappos.com
Earn unlimited 2% cash
Earn 40,000 bonus miles when
you spend $3,000 on
purchases in the first 90 days -
enough to redeem for a $400
travel statement credit
back on every
purchase, every day
Earn unlimited 1.5% cash
back on every
purchase, every day
23. Cardholder Statement
Jane Smith
1234 Happy Street
Pleasantville, MD 12345
Date: 2/14/14
BANKUSA
Wonderful Day School Tuition $20,000.00
DiamondMind Direct Conv Fee $375.12
Wonderful Day School Book Store $37.50
YXZ Grocery Store $26.29
UncleBob’s Pharmacy $12.75
Gasoline Station $58.34
Greatest Convenience Store $14.28
24.
25.
26. Convenience/Service Fee Overview
• MasterCard & Visa Special Programs
• Has always been permitted by Discover and
American Express
• Charge % on both credit cards & debit cards
• Two transactions preferable.
• Limit to Tuition, board and related fees
• 3rd party can collect for schools
• Schools only*
* And other select non-commercial sectors such as Government, Utilities and Higher Education
27. Check with Legal Council
California
Colorado
Connecticut
Florida
Kansas
Maine
Massachusetts
New York
Texas
Oklahoma
32. Cardholder Statement
Jane Smith
1234 Happy Street
Pleasantville, MD 12345
Date: 2/14/14
BANKUSA
Wonderful Day School Tuition $20,375.12
Wonderful Day School Camp $456.28
Wonderful Day School Book Store $37.50
YXZ Grocery Store $26.29
UncleBob’s Pharmacy $12.75
Gasoline Station $58.34
Greatest Convenience Store $14.28
33. Disclosure of Surcharge
Disclosures must be provided at the point of entry
(online for example) and point of sale
Itemization of the final surcharge amount must be
identified separately on the transaction receipt.
34. Example of Disclosure
We impose a surcharge of ________%
on the transaction amount on Visa and
MasterCard credit card products, which is not
greater than our cost of acceptance.
We do not surcharge debit cards.
35. States Prohibiting Surcharging
California
Colorado
Connecticut
Florida
Kansas
Maine
Massachusetts
New York
Texas
Oklahoma
36. Surcharge Fee Program Summary
• Percentage fee on all credit cards
• No % may be charged on debit
• No restrictions on type of payment
• 3rd party cannot collect for schools
• Must be done in one single transaction
• The % fee is capped at 4%
• 30 day notification of intent to surcharge
38. TUITION 2014/2015
http://www.wonderfuldayschool.com/tuition
Tuition amounts for the 2014/2015 academic year are as follows:
Lower $20,000
Middle $26,300
Upper $28,600
Please note these amounts
are discounted for cash.
Credit card payments are accepted through the WDS’s online tuition
portal. The system will calculate the non-discounted total payable when
using credit cards. The non-discounted levels are 2.75% higher than the
discount for cash amount.
39. STUDENT BILL
Student Name:
Account #:
Jane Smith
123456
Date:
Pay by:
2/14/14
2/30/14
If paying by: Amount Due: Notes:
Cash, Check or ACH $20,000*
* This is the discount for cash tuition amount
due if paying by cash, check, or ACH.
Credit Card $20,550**
** This is the non-discounted tuition amount due
if paying by credit card.
40. STUDENT BILL
Jane Smith
1234 Happy Street
Pleasantville, MD 12345
Date: 2/14/14
$20,000* Tuition for Mary Jones for 2014/15
Invoice States Payment Due in The Discount For Cash
Amount.
41. TUITION PAYMENT PORTAL
The Wonderful Day School offers a discount for payment by cash or check.
If you’re paying by cash or check, the tuition amounts for the academic year
2013/2014 are:
Lower School $20,000
Middle School $26,300
Upper School $28,600
You can make payment by eCheck or ACH at the Discount for Cash level by
choosing “ACH” as the payment option on the following screens.
If you’d like to make payment by credit card, you may do so by choosing “Credit
Card” as your payment option on the following screens. The system will calculate
the non-discounted amount which will be higher than the discounted amount by
2.75%.
Pay Invoice
http://www.wonderfuldayschool.com/tuition
42. Most states that appear to
prohibit or restrict surcharging
explicitly permit a discount for
cash approach.
44. If You Want to:
Convenience/Service
Fee
Surcharge Discount for Cash
Make credit card acceptance cost-neutral Yes Yes Yes
Accept all credit card brands Yes Yes Yes
All types of purchases? Limited
(tuition, board and related fees only)
Yes Yes
Accept debit and prepaid cards Yes No Yes
Third party eligible to collect Yes No No
Know the requirements to implement
• Limited to tuition, board and
related fees
• 45 day notice to VISA & MC
• 30 day notice to VISA & MC
• 4% max charge
• Single transaction
Properly label invoices and
published pricing
Operate in one of the 10 states* Check with your legal counsel Check with your legal counsel Check with your legal counsel
46. School that are accepting tuition by region
42%
53%
51%
41%
Sampled DM clients
by region.
47. How are schools handling the fees?
Surcharge Fee
39%
Service/
Convenience Fee,
54%
Discount for
Cash
7%
Out of 200
Diamond Mind
Tuition Portal Users
48. Average Number of
Monthly Tuition Transactions Per School
Credit Card
10
ACH
25
Sampled 150 Diamond Mind TuitionPay clients
49. Average Tuition Transaction Per School
Credit Card
$1,131
ACH
$3,437
Sampled 300 Diamond Mind TuitionPay clients
50. Who’s accepting credit cards for tuition by student size
17%
33%
22%
13%
16%
Out of 300 Diamond
Mind K-12 clients
<250
250-500
500-750
750-1000
1000+
51. Card Types Used Across Campus
Debit,
5%
Standard Credit,
63%
Rewards, 32%
We will discuss the reasons that schools accept tuition by credit card, what advantages it offers to the school and the parents. How do credit cards acceptance and online eCheck acceptance interrelate, and how does each benefit the school and parents . We will also talk about how the trends that may increase the demand for online and electronic payment options such as ApplePay and MasterPass. (10 minutes )
Credit cards are often a bridge that enables parents to access funds when the timing of withdrawing them from other sources is not ideal. The availability of credit on a card can allow a parent to remain on time with payments and avoid the embarrassment of a missed payment or need to request special exceptions.
something missing for those parents, small slice of total parents, but don’t leave them out
$20,000 for mary jones for 2015
Please note this invoice is for discount amount for cash or check.
Credit card payments Please note these amounts are discounted for cash.
$20,000 for mary jones for 2015
Please note this invoice is for discount amount for cash or check.
)
How many schools
Only 4% of our clients accept ACH only for tuition
Cost to process a paper check $1.50
Average cost of ACH payment is $.50
