School costs

All ParentPay products are provided on a web-hosting license basis. There are three costs for implementing and using the products: setup costs, annual service fees and transaction charges (charged by the bank/payment gateway).

If you would like more detailed information regarding the costs of setting up ParentPay in your school, please complete our online Request quote form and we’ll get back to you as soon as we can.

Set-up and account activation – one off setup costs

This is a one-off cost for the remote configuration and set-up of ParentPay for your school, and includes remote provisional guidance for school managers on setting up and launching ParentPay. Further training can also be arranged at this stage if required, charged on a day rate basis, either at your school or by attending one of our pre-arranged courses.

Annual service fee – main recurring license and support costs

This is a recurring cost, and covers four main areas:

• Hosting, data management & storage, security and associated technical costs
• License to use the ParentPay product(s)
• All enhancements, updates, new features and upgrades to the ParentPay product(s) licensed – no charged upgrades to new versions
• Annual telephone/email support contract for the school

Schools pay this fee annually in advance; multi-year service fee discounts are available for individual schools. Let us know when discussing your requirements with our business development team or on completing our Request quote form.

Transaction charges – charged by the payment gateway and banks

Schools are responsible for all bank, PayPoint and related transaction/payment gateway charges associated with the acceptance of debit and credit cards, and the PayPoint network.

ParentPay has negotiated specially discounted rates with the payment gateway, the card acquirer (Lloyds TSB Cardnet) and with PayPoint – these reduced rates are available to any of our school customers. Please see the next section banking and transaction processing for further details.

Banking and transaction processing
ParentPay facilitates the real-time authorisation of credit and debit card transactions with settlement into any UK bank account¹ . Schools are able to have payments settled into more than one bank account at school – or even externally with school suppliers like caterers.

Transaction security

ParentPay ensures that all transactions are handled securely, quickly, reliably and within bank and card scheme regulations and policy.

Transaction charges

These are split into two areas:

• Gateway charges
  ParentPay uses a leading UK secure internet payment gateway - transaction charges levied to ParentPay by the gateway are included in transaction fees
• Card acceptance charges
  Card transactions are processed by Lloyds TSB Cardnet, who apply a card scheme fee dependent on the card type

Payment settlement

The ParentPay Account Service: Primary schools and ParentPay Shop1 users

Your school’s transactions will be processed through our ParentPay Account Service, managed by Lloyds TSB on behalf of ParentPay; at the end of each calendar month, funds are transferred into your nominated bank account – net of all transaction charges.

You will receive a fully reconciled monthly account statement as part of this service detailing all paid amounts and transaction charges deducted.

Direct settlement: Secondary schools (local payments)

Each school bank account to receive payments will be set up with its own card acquiring merchant account – funds paid will be settled directly into these accounts; settlement taking the usual period of 3 – 4 banking days.

Payment gateway charges are invoiced in advance directly to schools by ParentPay. These charges cover the costs of using the third party payment gateway integrated as part of the ParentPay service.

Schools pay card acceptance charges directly to their acquiring bank – usually via a monthly Direct Debit.

ParentPay’s preferred acquirer is Lloyds TSB Cardnet – who offer our customers pre-negotiated discounted rates, alongside a fast-tracked application process.

PayPoint Service:

Your school’s PayPoint transactions will be processed through the PayPoint network into an account managed by Lloyds TSB on behalf of ParentPay. At the end of each calendar month, funds are transferred into your nominated bank account – net of all transaction charges.

You will receive a fully reconciled monthly account statement as part of this service detailing all paid amounts and transaction charges deducted.