Are you tired of chasing down your members for overdue membership fees or having to go to the bank to cash checks? Collecting your payments each month can be a burdensome task for some business owners. This is why it’s important to automate your billing and set up your member’s monthly payments to be taken out each month.
To start, you will need to set up an account with a payment processor and get your member’s authorization to bill their debit card, credit card, checking account, or savings account. Keep in mind that setting up automatic payments via ACH (checking or savings draft) is by far the most cost-effective payment method and will help to lower your processing costs in the long run. (See how to cut your processing fees by 75%)
This payment collection process can be further simplified by using some type of billing software or client portal. Since most member management software providers have built-in billing features, you can easily set up and collect one-time registration fees or recurring payments for any membership fees through your software.
In addition to setting up monthly payments, if you and your member have a unique payment arrangement you can also chose to set up weekly, bi-weekly, or bi-monthly payments for your billing. Simply start or stop your member’s billing with a click of a button and set up automated payment reminders for any upcoming bills or failed payments. This way you can further simplify your payment collection process and increase your success rates.
Also, remember to keep your authorization forms from your members on file for up to 2 years after the final draft of your client’s fees. This will help you to deal with any future chargebacks or customer disputes that you may encounter along the way.
5 Benefits of Automating Your Billing:
- Save time and money by not having to chase down members for payments.
- Collect payments seamlessly each month with minimal legwork.
- Avoid dealing with cashing checks and going to the bank.
- Receive automatic notifications of failed payments or returns.
- Increase your monthly collection rates and revenue.