As a business owner, when a customer is having trouble making their payments, you are put in a very difficult situation. Of course you want to get your full payment (after all you earned it) but money is a very sensitive subject to handle so make sure you approach this situation with care.
Tips on how to handle members who have trouble making payments
Encourage your staff to be responsive and offer solutions that are within your club policies. Some examples include:
- Are they using a card that is on the ‘Cards to Avoid’ list? If so, ask them for an alternative card that is not on the list.
- Have they specifically asked if their card will accept ‘Card not present’ recurring direct debit transactions? When you need to handle members who have trouble making payment, it is vital to double check that their card can accept recurring debits otherwise this will be an ongoing problem.
- Ask your customer to contact their bank to see if there are any restrictions or settings on the account that may not allow debits to be processed.
- Set a debit date that is the working day following their pay-day. This way, members who have trouble making payments will know that they have enough funds in their account to pay for their membership or subscription and won’t have to worry about it in the future.
- For members who have trouble making payments, you may need to offer them a more flexible payment plan. Allow members to pay smaller amounts on a more regular basis, e.g. weekly or fortnightly.
- Try a different payment method. Move them to a credit card wherever possible; however, make sure that you see ‘Cards to Avoid’ list first to make sure that you are using a card that is applicable.
- Ensure updated details are entered the working day prior to the debit being due. Sometimes wrong details or old details can cause failed payments. This is an easily preventable problem by checking them before debit are due.
- Sometimes, for members who have trouble making payments, this is a once-off occurrence. However, for other members who have trouble making payments, this is something that is an ongoing situation. If they are constantly failing due to insufficient funds, put the member on suspension until their financial situation changes and they have paid all outstanding fees.
Your approach when handling members who have trouble making payments is just as important
When approaching members who have trouble making payments, make sure that you approach them with empathy. Sometimes, members really do want to pay you, but are just having some difficulties so it is up to you to help work out a payment solution that will make both parties happy.
Think about it, if you start talking to them all angry and frustrated that they are having trouble paying, they will shift onto defensive mode and will shut down. Then there definitely be problems trying to get your payments then.
Remember, Ezypay is a direct debit billing system that has many failed payment processes in place that will help make collecting outstanding failed payments even easier. With our 99.5% collection rate and over 19 years of experience in the business, you know you can trust us to collect your direct debit payments the Ezy way. Please contact us for more information today.
Download your FREE printable goal cards: It’s times like this when maybe you need a little extra motivation. Here are some printable goal cards that you use to give your motivation to work off a bit off that frustration.