Why You Should Always Auto-Bill for Memberships


Whether you run a sailing club with member dues or a climbing gym with monthly passes, tracking down forgotten payments and depositing checks can waste hours of staff time. Here are 5 reasons why you should always auto-bill for memberships, and how you can assure your customers their data is safe.

1. Card on File = Better Cash Flow

By auto-billing with a card on file, you're ensuring your members stay up to date. This leads to less missed and late payments, meaning your accountant will thank you once it's time to pay your own bills. Payments via card also allow you to see funds sooner than with cash or check, and you can use the stored card to pay for merchandise, charge for rentals or other payment-required services much easier.

2. Save Staff Time

This one is obvious. When a number of your members are behind, how long does it take your staff to call each one? Are they sending emails, as well? Mailing physical bills? How many times do you need to reach out before it's been paid? When you need to track down a number of customers every month, you're losing valuable hours of staff time on a regular basis.

With RecHub, you can create flexible, auto-recurring invoices that will charge the card already on file. If a payment fails, we'll try charging again, ensuring you won't need call for those minor, one-time inconveniences. Members can also update their own billing information online, saving you even more time.

3. Reduce Churn and Cancellations

We've all seen it- the one guy who's missed one or two payments, but when you call to collect, they tell you they're cancelling! It can be harder to enforce past due invoices if they don't plan on returning, but sending to collections has it's own drawbacks. By auto-billing every month, you can ensure their payments are up to date, even if they do decide to cancel.

4. Improve Customer Relations

We've talked a lot about preventing missed payments and the benefits your staff will see, but here's something else to consider: You'll also be saving your customers unnecessary frustration. Think about it- less bothersome calls and awkward conversations will lead to a better attitude towards your staff. Not to mention most of your customers likely prefer automatic billing!

5. PCI Compliance Ensures Their Cards are Safe

While most prefer to be auto-billed, for those of us with traditionally older clientele, there may still be some hesitation. Here's how you can assure them that their cards are safe:

We work with a PCI Level 1 Certified third party to ensure all card information is immediately tokenized and never seen in RecHub. This protects both you, your customers (and us) from any risk of credit card data being lost in the extremely unlikely event of a data breach. Being PCI compliant also helps reduce the chances for fraud and chargebacks, which also helps keep your processing rates low.

Need help creating memberships or setting up recurring invoices? Check out this article for guidance!