Research Study: Analysis of payment speed and receivables before and after implementing Click-to-Pay™ Online Payments

Subject Client Background

• School-age program with 9 sites serving over 700 children.
• Has used EZ-CARE2 since 2005. Began use of Click-to-pay in January 2008.
• Billing is done monthly with invoices sent the 25th of each month for fees due the 1st of the following month. Late payments are assessed on the 10th of the month.
• Average tuition is $215/month.
• Serves a diverse community with both affluent and lower-income families.

Key Findings

• 86.4 % of revenue collected via online payments
• 42.6% lower receivables at due date (Oct Year 2 vs. Oct Year 1)
• 32.6% increase in payments by billing date – Oct 1st
• 75% reduction in time spent on payment processing (30 minutes/day vs. 2 hours/day)
• Introduction of online payments generated extremely positive feedback from parents who appreciated the ability to make payments 24 hours a day and without the need to send or drop off checks.

Methodology: Analyzed and compared actual payment history data for Year 1 vs. Year 2, obtained from client’s EZ-CARE system. Produced aging reports as of the billing date as well as the last day before late payment fees are applied.

Research and Analysis provided by Rudolph & Associates.