How to Get Paid Through Electronic Bank Transfers


A growing number of family child care providers are receiving parent payments through an electronic transfer of funds from the parent’s bank account to their bank account.

In a previous article I wrote about family child care providers who accepted credit card payments from parents.

Using electronic bank transfers has some of the same advantages as accepting credit cards: saves time by not having to travel to the bank, reduces or eliminates bounced checks, makes keeping track of payments easier, and it’s convenient for parents.

In addition, electronic bank transfers have the advantage of allowing parents to pay you from their work or at home. You can also set up a reoccurring weekly, biweekly or monthly payment schedule so you don’t have to constantly remind parents to pay you.

Here’s the way electronic payment transfers work.

You and the parent would agree to allow electronic transfers from a parent’s bank account to your bank account. You would also agree on the amount of the payment and when the transfer will be made. Usually there is a day or two between the time the money is taken out of the parent’s bank and the time it’s available in your account.

I’m old enough to remember being nervous about using the Internet for money transactions. Today’s security systems are strong enough not to worry about this.

If you are interested in setting this up for your business, contact your local bank. Fees vary. is a popular company used by many child care providers to electronically transfer funds. It is also available to users of the Minute Menu record keeping software program. The cost is $1 per transaction.

As with accepting credit cards, you should understand the fees involved before going ahead. If you have five parents paying weekly using the Minute Menu plan, it would cost you $5 a week or $260 a year. You can pass on these bank fees to parents if you wish. If you are having trouble collecting fees in a timely manner from one parent, you could require that person to pay you using a credit card or electronic bank transfer.

What has been your experience with electronic bank transfers?

Tom Copeland –

Image credit:

Categories: Money Management, Money Management & Retirement

Tags: , , , , , , , ,

15 replies

  1. I’ve been using ChildCarePay for several years and I love it! The only thing I don’t like is the fact that it takes 3 business days for the money to show up in my account (four if a bank holiday falls in between!)

  2. I assume you could claim the fees as a tax deduction, what would you place it under in the Minute Menu program for tax purposes?

  3. I use Vanco Services and I love it! It’s only 25 cents per transaction, so it’s a less expensive option.

  4. I have also been using childcarepay for several years. I works really well. Families don’t have to worry about writing a check and it cuts down on the time that I have to spend going to the bank to deposit checks. 90% of my clients use childcarepay, they say it’s easier for them. I also like the fact that payments can be adjusted if needed.

  5. I recently had a parent ask for my routing and checking account number so they could transfer funds directly into my checking account. Friends told me not to worry about giving out this information because all that is already on any check I write. Do you agree?

  6. I have been using the CCP (childcare payment) through minute menu for over a year and it has worked out better than any other method to date. Example: today i was to be paid by two families, one did through CCP and it was in my account very early this morning, the other ….well I am still waiting. I have a family pay by their bank but it comes as a check not electronic deposit. I still have to make a trip to the bank and wait for the funds to clear. I would love it if all my families use the CCP method, I cover the $1.00 fee and two families have agreed to have it taken out automaticilly so I don’t even have to make up an invoice the program does it for me. Such a short cut and one less thing I have to worry about. If anyone was to ask me I would tel them, yes, it is a good thing to use the childcare payment option from the minutemenu program.

  7. I have been using childcarepay for a few years now and love it! All my parents use it. I never have late payments and I never have to go to the bank. It is definitely worth the $1.00 per transaction fee because my parents pay monthly.

  8. Go ahead and give parents your check routing number and account number. It is posted on your check, but it may not be clear to the parent which number is which.

  9. All banks fees for your business are 100% tax deductible. Put them under Office Expenses in minutemenu.

  10. One of the things that I love using is PayPal. They allow for the parents to make a personal transfer without any fees attached. It does take about 2 days to transfer but I love doing this because I don’t have to worry about fees on my end or the parents complaing about any fees.

  11. I went into site and could not find where child care providers sign up. Help? It does mention that providers have a “welcome page”.

  12. I went into site and could not find where child care providers sign up. Help? It does mention that providers have a “welcome page”.

  13. I have been using Electronic Bank Transfers but i can not trust on that, thanks for sharing helpful information about that. Inter Bank Transfer enables electronic transfer of funds from the (free checking account) of the remitter in one Bank to the account of the beneficiary maintained with any other account. thanks and read more at:

  14. I was informed that Child Care Pay is going out of business and I need to switch to

    Is this true?????

  15. I know this is older post. I recently started using Zelle after a parent showed interest in using it to pay me. Now I have most of the parents paying this way. It is an instant transfer and shows as visa direct deposit in my checking account. I love it! Now I am wondering how to put it in Kidkare as payment on invoice? There are only two options cash or check that I see. Thank you for any help that you can provide

Leave a Reply

Your email address will not be published. Required fields are marked *