Choosing the right configuration of Direct Debit memberships⭐

When configuring a Direct Debit membership, you need to define the pricing pattern of the scheduled steps. What you choose from the screen of the membership tariffs defines the behaviour of the schedule steps and the invoicing, the thinking step cannot be avoided. 

Notice here that many choices have to be made and it is important not to start your sales without being sure of what has been configured. This article helps you to make the right decisions when configuring the Direct Debit memberships, but in case of any doubt after reading it, the best is to contact your onboarding manager. 

DETERMINE THE MEMBERSHIP MONTHLY PAYMENTS

This is the easiest step : it consists in simply determining what the member pays each month. 

DETERMINE WHETHER THE MEMBERSHIP IS FOR A LIMITED OR AN UNLIMITED PERIOD

This field enables to define whether it is a Direct Debit membership for a limited or an unlimited period.

If you choose X months > it is a limited membership which will end after the membership duration indicated in the tab Memberships .

If you choose an unlimited period > it is an unlimited membership which will be renewed : either following the commitment period indicated with the tariff if there is one, or following the membership duration indicated in the Memberships tab, if there is no commitment period indicated with the tariff. If you want to stop the membership, the member will ask to terminate it. To know more about the termination process, please see this article.

DETERMINE THE BILLING RATE

By default, the billing rate is monthly*: for each due date, a new invoice is generated so the scheduled steps come in month after month. 

GOOD TO KNOW

The invoices from a monthly billing are generated 15 days prior to the end date of validity of the current month (state : early) and their date of book entry (in the sales log, the receipts log and the bank log) will be done  when confirming the Direct Debits at the bank. But, it is possible to view the scheduled steps of a membership from the Memberships tab in the member file.

DETERMINE WHAT IS PAID AT THE SALE

Paying attention to this step is essential if you want your membership to fully satisfy your need. To understand what is paid, when and how it is paid, some patterns are indicated for each situation. 

This is the caption of these patterns :

CASE # 1 - The pro rata simple mode 

At the sale, the member will pay at the club desk (bank card, cash...) the pro rata calculated on the amount of the service used in the current month compared to the price of a full month.

Here, at the sale, the member will pay the pro rata of the number of days consumed in the first month. 

Example: the membership starts on March 11th. At the sale, the member will pay the pro rata of what s/he has consumed in the month and will be debited a full month the following month.

This pattern illustrates what occurs at the level of the scheduled steps and the member's payments with the example of a start date on the 11th and a Direct Debit day on the 5th with a pro rata classical type: 

CASE # 2 - The pro rata mode by level

Here, at the sale, according to the day of the month when the membership starts, the member will pay the decided tariff. Then, the following month, s/he will be debited the amount of the full month.

Example: the membership starts on January 16th. The member will pay £10 at the sale, then, the following month, s/he will debited a full month.

CASE # 3 - The pro rata mode and the first month paid at the sale 

Here, the pro rata by level (see explanation case # 1 and 2) will be paid at the sale and the first full month of the membership will be invoiced. By ticking the second box 'first full month is paid during the sale', we can also decide to have this first full month paid in addition to the pro rata. 

Here is the pattern which gives some details on this mode:

Warning

When you choose one of the 'pro rata' modes, it will always be positioned at the start of the scheduled steps. The aim is to continue the following month on full months, the first month will always be from the 1st to the 30th/31st.

CASE # 4 - The 'date to date' mode 

At the sale, the member does not pay anything, s/he will pay the first month on the nearest Direct Debit day. In the case where fees are configured on the membership, the first month will also be invoiced on the sale day. (invoiced, not paid). 

Example : Start your membership  on March 11th. If your Direct Debit day is the 5th, you will be debited for the first time on April 5th.

If this mode suits me, you must to tick the following boxes :

Case # 4 :  'date to date mode + first month paid during the sale' 

The member will pay her/his first month during the sale. As it is the date to date mode, the member may be debited the second month quite a long time later. 

Example : your direct debit day is the 5th, the membership starts on 11/03/2019. So your first month goes from 11/03/2019 to 11/04/2019. You will be debited your second month on 05/05/2019.

Here is the pattern explaining this collecting mode: 

Now you know how to choose my scheduled steps well. To know how to create a new membership from the beginning, see this article.

*full billing is reserved to clubs which calculate differed income on direct debits.

IF NEEDED, DETERMINE THE COMMITMENT PERIOD

From the three small dots on the tariff, you can add the commitment period of the unlimited membership. 

GOOD TO KNOW

- If you do not put a commitment period of the tariff, the commitment period is the membership membership indicated in the first tab.

- If the membership is limited (without tacit renewal), this option will not be suggested.

- If you do not wish a commitment period on the tariff, you must put a commitment period = 0 months/days

- If you wish to make an unlimited membership with a 12-month commitment, the membership period indicated in the first tab is not important providing you have correctly indicated that there was a tacit renewal on the tariff (you can put the membership duration you wish).