School fees collection: a guide for schools and crèches

The most reliable way to collect school fees is a monthly debit order (or annual upfront payment with a discount), set up at enrolment with a mandate signed by the parent who pays, a collection date near payday, and automatic statements, reminders and payment links for anyone who falls behind. Public schools must also follow the South African Schools Act rules on fee exemptions and on how non-paying parents may be treated; independent schools, crèches and aftercare centres collect under their parent contracts.

Fee collection is the lifeblood of most schools and early childhood centres, and one of the biggest admin burdens for bursars. Here's how to make it predictable.

Public, independent and early childhood: different rules

For public schools, the Department of Basic Education publishes the regulations on fee exemptions. Among the key principles: parents who qualify may apply for full or partial exemption, and a school may not refuse admission, withhold reports or exclude a learner from school activities because fees haven't been paid. A school may take legal steps against parents who are liable and not exempt, after following the prescribed process. See the Department of Basic Education and take advice from your provincial department or legal adviser.

Choosing collection methods

Debit orders (recommended default)

Monthly debit orders suit school fees perfectly: fixed amounts, over 10–12 months, from local bank accounts. Tips:

• The account holder signs the mandate, which may not be the parent listed first on the enrolment form.
• Let parents choose a collection date near their payday (for example the 1st, 15th or 25th). See debit order action dates.
• Use a clear statement name, such as the school's name, not the bursar's or the software company's.
• State the number of instalments per year (10, 11 or 12) and the months they run.

Read how debit orders work for the mechanics.

Annual or termly upfront payments

Offer a discount for paying the year upfront, if your fee structure allows it. It brings cash forward before the year starts, when schools face large costs.

EFT with a learner reference

Some parents will always prefer EFT. Give every family a fixed account reference (not the learner's name) and show it on every statement. See payment reference best practice.

Card and instant EFT via payment links

Useful for registration fees, tours and camps, uniforms, and settling arrears quickly.

Structuring fees

• Tuition fees by grade, as a monthly or annual amount.
• Registration or re-registration fees, once-off.
• Sibling discounts: apply as a clear rule (for example 10% off the second child) rather than editing invoices.
• Extras: aftercare, transport, meals, extramurals, billed as separate lines or add-ons.
• Deposits for new enrolments, credited later.

Consistent rules make automated billing possible and reduce disputes.

Handling arrears sensitively

School fees are emotional: parents in arrears are often under financial pressure, and staff know the children. A fair, consistent process helps everyone:

1. Monthly statements to every family with a balance.
2. Automated reminder a few days after a missed payment, with a payment link.
3. Personal contact from the bursar after 30 days, offering a payment arrangement.
4. Written payment plan with dates and amounts, ideally by debit order.
5. For public schools, inform parents about exemptions and process applications fairly.
6. Escalation under your policy (and, for public schools, only in line with the Act).

Never discuss arrears with or in front of learners.

Unpaid debit orders at the start of the year

January and February are hard months for families. Consider:

• Starting the first debit order later in January.
• Sending a reminder before the first debit of the year with the new fee amount.
• Updating mandates when fees increase, in line with what the mandate allows (see the mandate checklist).

Reports a bursar needs

• Fees billed vs collected per month and per grade.
• Families in arrears by age (30, 60, 90+ days).
• Unpaid debit orders by reason code (see unpaid debit order reason codes).
• Discounts and exemptions granted.
• Cash flow forecast for the term.

Privacy

Schools hold information about children, which receives special protection under POPIA. Limit who can see family financial information, never share arrears lists publicly, and secure bank details from mandates.

How CentraPoint helps

CentraPoint lets schools, crèches and aftercare centres set up fee plans per grade or class, collect by Netcash debit order with online mandate signing by the paying parent, and accept EFT with proof of payment, card or instant EFT through payment links. Branded invoices and statements go out automatically, reminders follow missed payments, coupons can handle sibling or early-payment discounts, and parents can view statements in the customer portal. Roles and permissions keep financial data restricted to the bursar's team. Contact us to discuss your fee structure.

Frequently asked questions

Can a public school withhold a report because fees haven't been paid?

No. Under the rules applying to public schools, a learner may not be denied reports, excluded from activities or refused admission because their parents haven't paid fees. The school may pursue parents who are liable and not exempt through the prescribed legal process.

What is the best way for a crèche to collect monthly fees?

A monthly debit order, signed by the paying parent at registration and collected near their payday, is usually the most reliable method, with payment links as a backup.

Should school fees be collected over 10, 11 or 12 months?

It's a choice for the school. Twelve instalments lower the monthly amount but extend collection past the school year; ten instalments finish sooner. State the schedule clearly in the fee policy and mandate.

How should a school handle a parent who stops the debit order?

Contact the parent to understand why, agree an alternative (a new mandate, EFT or a payment plan) and put it in writing. Don't resubmit a debit order the account holder has stopped.