The 'cash-only' debate
Online payment systems are becoming the preferred method for schools to ensure money is received efficiently and safely. In spite of the benefits of implementing this software, there are still a number of schools throughout the UK that are reluctant to go cashless.
Why? Some schools feel that by going cashless they will exclude a large proportion of their parents which are cash-based payers. However, a recent parliamentary report has found that around 1.5 million people in the UK don't have a bank account, which is equivalent to just 1 in 40 people.
On average, primary schools will have around 400 pupils, which means only 10 parents in the whole school will be without a bank account. In fact, it could be far less, as 600,000 people included in the survey were classed as 'older people', who are unlikely to have children of school age.
Taking the figures above into account, if a school offers online payments to 390 of their parents, their admin staff can then easily manage the recording of cash for the other 10 parents, without providing an additional option to those without a bank account, which comes at a further expense.
To find out more about the benefits of implementing an online payment system at your school, click here.
Help for parents
If your school would like to implement an online payment option in the future, there are resources available to help parents set up a bank account.
In January 2016, fee-free bank accounts were introduced for people who have either been refused a current account in the past or can't use one due to financial difficulties. For those parents who don't have a bank account, a fee-free basic bank account can make it much easier for them to manage their money.
These types of bank accounts don't have an overdraft facility, meaning parents won't be able to get into debt by spending more than they have.
Most fee-free bank accounts will allow parents to:
- Pay money into their bank
- Some will receive a debit card
- Pay bills
- Withdraw money
- Monitor their account balance
- Have their wages, salary, benefits, pensions or tax credits paid straight into their account
- Pay cheques in for free
For more information about fee-free bank accounts and the eligibility, click here.
To arrange a no-obligation demonstration of our Online Payment Module to see how we can help your school, please give us a call on 0844 800 4016 or email email@example.com.