Back it up!
Having a backup funding source for your monthly membership charges as a gym can be a beneficial practice. Here are a few reasons why:
Avoid membership cancellation
If a member’s primary payment method fails or gets declined, having a backup funding source allows you to automatically charge the alternate payment method. This helps prevent membership cancellations due to payment issues, ensuring a steady stream of revenue.
Customer convenience
Offering a backup payment option can enhance customer satisfaction by providing flexibility and convenience. It demonstrates your willingness to accommodate members and reduces the chances of them encountering payment-related hassles.
Minimize revenue loss
In the absence of a backup funding source, declined payments or expired cards may lead to lost revenue if members don’t update their payment details promptly. By having an alternative payment method on file, you can mitigate the risk of revenue loss.
Financial stability
Relying solely on one payment method can pose risks if issues arise, such as changes in a member’s financial circumstances, bank errors, or payment system glitches. A backup funding source helps maintain financial stability and ensures a consistent income flow.
Improved cash flow management
Having a backup funding source provides more control over cash flow management. It reduces the likelihood of delayed payments, increases the predictability of revenue, and enables better planning and budgeting for your gym’s operations.
When implementing a backup funding source, ensure you inform your members about its availability and clearly communicate the process.
