5 Common Myths About Collecting Tuition Payments Online

*Updated February 2025

Managing tuition payments is often one of the most time-consuming and stressful aspects of running a childcare center. From processing payments and chasing late fees to organizing tax returns and handling bounced checks, it can feel like an endless cycle that takes precious time away from what matters most—mentoring teachers, engaging with families, and supporting children.

Despite the convenience of digital payment systems, a surprising number of parents still pay in person. A recent survey of over 500 parents in the US and Canada revealed that many childcare centers haven’t yet adopted online payment systems, with only 39% of centers offering this feature. Concerns around cost, security, and the effort required to implement these systems are common, but the benefits far outweigh the perceived challenges.

For millennial parents—who make up the majority of childcare customers—online payments are a given. With 85% of parents paying at least some bills online and 60% paying the majority of their bills digitally, offering automated payment options is not just a convenience; it’s an expectation.

Let’s debunk some common myths about digital payment systems and explore how the right solution can transform your center’s payment process.

Myth #1: “It’s Too Expensive to Switch to an Online Payment Option.”

While there are costs associated with payment software, the time savings and efficiency gains are invaluable. Without a digital system, creating invoices, sending reminders, processing payments, and preparing tax documents can take up to 30 hours each month. With a modern tuition payment system, this entire process can be completed in as little as one hour.

Take it from childcare director Melissa McLauchlan, who transitioned to Lillio Billing and Payments:

“The first of the month, I used to dread it. It would take 3 days to process everything. Now, it takes 2 hours. The time it has saved me is unbelievable.”

Faster payments also mean improved cash flow. To manage software costs, consider incorporating them into tuition fees or applying a small surcharge for credit card transactions, which often have higher processing fees.

Myth #2: “It’s Not Safe and Secure, and Parents Won’t Trust It.”

Security is one of the most common concerns, but modern payment systems prioritize safety. Reputable providers use robust encryption and security protocols, often backed by major financial institutions. Parents—especially tech-savvy millennials who regularly shop online and through mobile apps—are familiar with and trust digital transactions.

Childcare owner Miriam Owens shared her perspective on upgrading her center’s payment methods:

“I was using spreadsheets and apps like Venmo, which felt unprofessional. Switching to Lillio made tuition payments more secure and gave families confidence in the process.”

By investing in a secure platform like Lillio, you demonstrate professionalism and build trust with your families.

Myth #3: “Parents Would Rather Have the Flexibility to Choose How and When to Pay.”

It’s a common misconception that parents want the freedom to pay in cash or by check. In reality, most prefer the convenience of automated online payments. According to the Parent Satisfaction Report, 75% of parents wish their childcare provider would simplify the payment process.

Automating payments eliminates the hassle of manual follow-ups, reduces late payments, and ensures a smoother experience for everyone. As Melissa McLauchlan explained:

“Parents don’t want to write checks anymore—it’s inconvenient and outdated. Offering digital payments aligns with their needs and expectations.”

Myth #4: “It’s Too Difficult to Figure Out How to Use Online Payment Software.”

Adopting new technology can feel intimidating, but most online payment systems are designed with intuitive functionality that is easy to use. Providers like Lillio offer comprehensive support, including training videos, step-by-step guides, and live assistance, ensuring a seamless transition for your team.

Center director Amanda Shroyer shared her experience:

“When I opened Lillio Billing for the first time, I was relieved by how simple and clean it was. Everything was so obvious—it made the process stress-free.”

By investing a small amount of time in training, your team can quickly master the system and enjoy the benefits of streamlined billing.

Myth #5: “Parents Prefer to Pay in Person for a More Personal Experience.”

Some center directors worry that online payments might feel impersonal, but this couldn’t be further from the truth. Parents appreciate personal interactions with teachers and directors, but they don’t want those moments tied to the stress of financial discussions.

In fact, automating payments can eliminate awkward conversations about late fees and missed payments. As Melissa McLauchlan noted:

“Lillio Billing has eliminated 100% of our uncomfortable conversations with parents.”

By simplifying the payment process, you free up more time to focus on meaningful engagement with families—like greeting them with a smile, hosting family events, or discussing their child’s progress.

Why Digital Payment Systems Are the Way Forward

Switching to an online payment system isn’t just about convenience—it’s about modernizing your center to meet the needs of today’s families. Digital payments save time, improve accuracy, and reduce stress for both you and the parents you serve. By embracing these systems, you can focus on what truly matters: nurturing the children in your care and supporting your staff.

Ready to simplify your billing process and save countless hours every month? Lillio Billing and Payments is designed specifically for childcare centers, offering secure, user-friendly, and professional payment solutions that parents trust. Join the growing number of centers transforming their payment systems with Lillio.

Discover how Lillio can work for your center today—schedule a demo now!