The service our school start using collects $25 as initiation fee, then add $15 fee every payment, 4 times per year, lump sum or monthly. Money is drawn from checking/saving account, 2% extra if charged to CC. If payment request would go back NSF, they charge $30.
When I asked why they went with this service they said many parents are delayed payments for many months, they are tired of bounced checks, school strapped for cash. Why everyone has to be punished along with delinquient parents no one can answer..