Are you using the right form of payment at your sports club?

Post by Beñat, 30 de enero de 2019

Many sports clubs use inappropriate ways to collect their dues and timely payments. There are still too many clubs that charge their members by hand, with credit cards, bank transfers or direct debit payments. We bring you payment methods that will help you speed up this work.

Four common payment methods in sports clubs

Charging by cash in hand or charging by credit or debit card can be very time-consuming. Even when collections are done very occasionally. Think about all the logistics to hand collect all the payments from your club. And imagine doing it on a recurring basis, every month!

Direct debit is an effective solution for regular and unchanged payments. But it is only a viable option if your club is very small, and you can keep on top of all the payments. You must make sure your members schedule direct debit, and then check them one by one via your bank's online platform.

Bank transfers offer temporary flexibility. But similarly, it is necessary to ensure that each member has paid the amount due, and within the specified deadlines. Having to review the transfers one by one, is not just time consuming for the club, but it does not offer many advantages to the members either.

To help you understand why Clupik is the right form of payment at your sports club, we've compiled three questions you should be asking.

1- Do you need all members to pay you in advance?

a) Yes, I need my athletes to pay in advance

You can ask your members to pay you in advance by hand, by check, credit or debit card, or, maybe most commonly, by bank transfer. However, as we have mentioned before, keeping on top of people to get paid can become very tedious. All clubs have at least that one member, that no matter how many reminders they get, still doesn’t advance the money for the trip or kit order. What do we do? Do we call him back? Do we advance their money? If we make an exception with them, we should make it with everyone, right?

If you need all your members to pay in advance, but it is impossible for them to do so due to cash problems or any other reason, another alternative is to use a factoring company. These companies allow members to pay monthly, while they give you all the money beforehand. Normally, the commission is usually around 6% of the total.

Another very feasible alternative may be to use an automatic payment method such as Clupik. Not only do you avoid having to wait for people to show up to pay cash in hand, card, or check, but it allows you to set up recurring charges.

For example, you can charge the annual or monthly fee automatically on the selected date, without having to be aware that, effectively, each member pays.

It is a way to improve the service for your members, increasing loyalty and getting them to stay at the club longer. Believe it or not, in many cases members stop paying club fees due to all the complications that the payment process brings. If it were easy, they wouldn't care so much, take it for granted.

Eye! It also significantly saves management time for the person responsible for the club.

b) I don't need my athletes to pay in advance

If it is not essential to charge your members the full amount upfront, consider allowing them to split their payments. Letting them pay their debts quarterly, monthly, or even weekly through an automatic payment method like Clupik, which can bring unimaginable value to your club.

This way you will make the fees more affordable for your members. Indirectly, the number of members of your club will grow, thanks to the fact that you offer a service that other clubs cannot offer.

Even if it's not a widespread practice, being able to make exceptions with some members gives you flexibility. The last thing we want is for the member who is financially stretched to leave the club for economic reasons.

But remember, you also must take into consideration the time you spend on each task of your club. Managing this type of specific situations can become a real concern.

2- Do you usually make specific collections for trips, clothing, or other club activities?

a) Yes, I usually require them to make one-time payments.

Normally, clubs have a fixed fee, and if there are variations, they use alternatives such as cash in hand or one-off transfers. It is a lot of time and effort wasted to manage every small change in the fees.

An alternative is continuous payment authority. These payments are charged directly to members' credit or debit card once they authorize it. On the other hand, the commissions are usually quite high, hovering around 4%-5% plus a monthly fee. In addition, it is not a widespread practice, and having to explain how to do it can take more time than charging it directly by hand.

If members must pay for any type of one-off activity, or if fees vary throughout the year, you can schedule specific collections and create different payment categories with Clupik by paying a much lower commission than with Continuous Card Payment Authorizations.

And more importantly, without having to keep on top of your members day in and day out.

b) I do not usually require them to make one-time payments.

If the only charges the club make are recurring and regular payments, direct debit payments could be a good option for you. Please note, however, that members will still be responsible for all paperwork to set up direct debit. So, you're at the expense of them effectively doing it, and again, you have to keep on top them. In addition, it is likely that, out of ignorance, more than one member will have complications in indicating the authorization of direct debit of such receipts.

Unless you have a very small number of members that doesn't take that much time, you'll probably prefer to consider an automatic payment type like Clupik's. The member adds the account number only once and is automatically charged the indicated amount periodically.

The club may at any time disregard the entire payment process, receiving alerts if there is a problem such as a return. This process makes it easier for both members and the club itself.

3- How many members do you have at the club?

a) My club has less than 50 members

If you are a small club or carry only one team, direct debit may be a feasible solution. The costs are very low, even zero, although you will have to be monitor the payments proactively so that you do not miss any.

b) My club has more than 50 members

If your club exceeds the 50-member barrier, the option of direct debit is less attractive. With them you will not know if the payments have been configured or if any of the payments have been cancelled. You must manually review them one by one, and, with so many members, this task can be made very tedious. In addition, you run the risk of cancellations, with its consequent bank charge as a penalty.

With the automatic payment’s settings, you are automatically notified in the case of failed payments. You'll know when you've been paid and when you've not, without the need to constantly check bank statements. You can also set up automatic reminders for all those members who have not paid within a certain period of time. This way, you'll be "on top of them," without really having to be.

The best alternative? the one that values your time

In short, from Clupik we suggest that to streamline the management of fee collections and punctual payments, you use an appropriate platform for it. You may have to pay a commission, but the time that is lost in managing all those payments repeatedly, has a value much higher than what is usually paid to these platforms.

 

In addition, in some of them, as in the case of Clupik, you are allowed to pass on the commission to the member. In this way, the club can choose not to assume any cost, and it is the member who must pay a little more. If, on the contrary, the club wants to assume that extra cost to offer the best of services to its members, Clupik also allows it to do so.

 

Here we leave you a series of tricks to save money in your sports club. Join the digital transformation of sports clubs and do not let the traditional way of doing daily tasks stagnate you and do not allow you to move forward. Learn more about our solution to manage your club's payments: Clupik Pay

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