---
title: "Do late fees apply automatically?"
description: "Only if you turn on Apply automatically. By default a late-fee policy just builds an eligible list you apply by hand, and each invoice gets one fee ever."
type: overview
updated: 2026-10-09
canonical_url: https://help.nestlicare.com/owners/faq/do-late-fees-apply-automatically
roles: ["super_admin", "center_admin"]
platforms: [web]
---
Not unless you turn that on. Setting a late-fee policy (an amount and a grace period under **Invoices & Finances → Billing → Late Fees**) only builds the **Eligible now** list: invoices past the grace period, waiting for you to tick and apply. Nothing is charged until a person chooses to.

There is a separate **Apply automatically** toggle, off by default. Turn it on and NestliCare applies the fee each morning in your timezone (or within an hour of your cutoff time, if you charge on the due date after a set time), notifying the parent in the app. A good habit is to run the list by hand for the first month, then automate once you trust it.

Guardrails either way:

- An invoice can receive **one late fee, ever**. Fees never compound.
- Invoices that are paid, mid-payment (a settling bank transfer), inside the grace period, waiting on auto-pay, or previously waived are never eligible.
- **Waive** removes a fee and marks that invoice permanently ineligible, so it will not reappear tomorrow.

On the web, parents see your late-fee policy on their Invoices page. In the apps they see nothing until a fee is applied; then they get a notification and the fee shows on the invoice. Tell families about the policy yourself before you start.

Related: [Charge a late fee](/owners/billing/charge-a-late-fee), [Charge a late pickup fee](/owners/billing/late-pickup-fees).