In an economic crisis, the payments processing industry becomes more risk averse. Many merchant processors fearing waves of member charge-backs and business failures are now withholding the membership credit card settlements. We understand how devastating it could be for you to have funds withheld from your bank accounts. For this reason, we have been speaking with our processing partners so you are aware of what to expect. Some of our processors are withholding a portion of the settlement to cover potential charge-backs. They are also working individually with clubs to see how they are handling their membership fees during the closure. Contact your processor directly if you have specific questions regarding your merchant account. There is currently a class action lawsuit against NY Sports Club for charging members during the COVID19 crisis.
We strongly encourage everyone to add some type of notification to their websites about how they are handling their memberships and what services they can provide while the physical location is closed.
Here are some examples of proactive measures that might justify membership billing while the clubs are closed:
1. Offer virtual classes, training, and fitness. If you still offer your membership alternative fitness options, you are still providing services to your members. In addition this will keep your staff in touch with the members giving them confidence that you care about them and their fitness goals.
2. Communicate with your members and give them payment options. A large percentage of your members will gladly pay their membership dues during this crisis; especially if you add a discount on other services you offer, such as personal training, special classes, juice bar items, nutrition services.
3. Announce these options on both your website and your social media platforms.
4. Offer a reduced fee for a membership freeze during this time.
5. Reach out to industry professionals such as IHRSA to research how other clubs are handling their billing.