The payment provider sQuid, which has ceased operating in the UK, will now hand parents back more of their money following a Schools Week investigation.
We revealed last month how sQuid, which provided parents with online accounts for funds for school meals and trips, had said it would only refund parents for balances over £10 – and those wanting to withdraw their cash must pay a £10 “administration fee”.
While parents tend to keep small amounts on sQuid accounts, schools said it can add up. One trust claimed sQuid holds about £43,000 deposited by parents at its schools.
Others said the company was holding between £5,000 and £8,000. But after Schools Week’s story was picked up by The Guardian, BBC and consumer champion Martin Lewis, the company said it would change tack.
A spokesperson said: “The company understands why some schools and parents are upset that there has been a charge applied for refunds, even though there is a real cost to administer this service.
“Having listened carefully to schools and parents the company has reviewed its refund policy.”
They said refunds would “take a little time, so we ask parents to be patient while we put these amended arrangements in place”.
Company apologises
“We apologise for any confusion we may have caused and will work with all the schools involved to minimise any further inconvenience for parents.“
sQuid said it would aim in the first instance to work with schools to arrange a full refund with no charge.
The child’s school would contact parents directly, which meant they would not need to apply for a refund through sQuid’s website.
Where a school could not manage the refund, the £10 charge would be reduced to a maximum of £2.50, with parents able to request a refund through Squid’s online portal.
The charge would vary between 20p and £2.50, depending on the refund amount. They would be refunded automatically if they had already paid the higher £10 fee.
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