Introduction
Monthly Recurring Payment Plan is the most popular type of Membership. The fee can be paid weekly, fortnightly, monthly. Such Payment Plans usually do not have a fixed end date, but a member cannot cancel the Membership before the end of the Commitment period. Otherwise, they will have to pay an Early Termination Fee.
In this article, you will find the practical instruction on how to configure the most commonly used example of the Monthly Recurring Payment Plan. In this example, you will see a Payment Plan with 12-month Commitment period and monthly recurring payment. An Early Termination Fee will also be added in case a member decides to end the Contract before the Commitment Period reached.
- This article will help you understand the logic of the Monthly Recurring Payment Plan configuration. Based on it, you will be able to set up your own Monthly Recurring Payment Plans.
- This article will be helpful to PG Champion, Club Manager, Sales Manager, Administrator and Club Owner.
Before you start
Read the following article and familiarize with the Payment Plan definition.
Instruction
How to set up Monthly Recurring Payment Plan?
1. Go to the PGM -> Sale -> Membership -> Payment Plans.
2. Click on the Add new payment plan button.
3. Fill in all the information according to your needs:
New payment plan
- Name - enter the name of your Payment Plan
- Minimum / Max Age - enter the minimum / maximum age your members must be at to be able to use this Payment Plan. This is optional!
- Fiscal name - if the name visible on the receipt should be different to the name of the contract, add such name in this field.
- Start date / End date - enter the dates the Payment Plan should be available for purchase. This is optional, see the info box below!
- Active - tick this checkbox to activate the Payment Plan and make it available for purchase.
After ticking the Active checkbox, the Payment Plan will be immediately available for purchase. However, if you want to define Payment Plan Start date and End date, choose the time of its availability from the calendar. Mind that the Active checkbox also has to be ticked. The system will automatically deactivate the Payment Plan after the End date.
- Plan type - from the predefined list, select Contract.
Fees
Decide if the amounts should be counted nett or gross. The tax percentage will be respectively added or reduced to the amount entered in given fields.
- Membership fee - add the amount that the club member should pay for 1 Payment Interval.
- Administration fee / Joining fee - decide if you want to charge additional one-time payment during member registration process.
- Penalty for unpaid installment - decide if you want to charge your members in case of delays in their Contract payments.
- Penalty charged after (days) - decide after how many days the you want to charge you members with the penalty.
- Freeze available - decide if you want to give the possibility of freezing Contracts to your members.
We recommend to make this option available. This can be convenient in case of any future change within your business Payment Plan policy.
- Deposit value - decide if you want your member to pay a fixed deposit amount during registration. This amount can be easily returned to the member.
- Allowable debit - decide if you want to allow your members to enter the club on debt. Enter the allowable amount.
Remember, that the amount must start with "-".
Payment methods
Decide which online payment method you want to make available for your club members. You can select more than one payment method.
During the Monthly Recurring Payment Plan configuration, we recommend selecting Credit Card and Direct Debit methods of payment. This way, your club members will be able to choose the most convenient method of payment. It is also beneficial to your business, because you will have the opportunity to automatically charge your members with their monthly payments.
Make sure your club has a payment provider properly configured, so that your members are able to use chosen method.
Paid at the reception - mind, this payment method is not the same as making POSweb payments, which are available anytime!
Periods
- Payment interval - select 1 month. It means that the Membership fee you have entered before, will be charged each month until the End date of the Contract.
If you select Payment Interval other than 1 month, i.e. 3 months, the Membership fee will be charged every 3 months until the End date of the Contract.
- Commitment period - select 12 months. It means that a member is obliged to pay for the Contract for at least 12 months.
- Minimum cancellation period - select 1 month. It means that a member has to terminate the Contract minimum 1 month before the expected End of the Contract.
I.e. when a member wants the Contract to end on 31 December, he/she has to inform the club no later than on 30 November.
Settings
We recommend to use the following settings. Mind that your business needs may differ from the below recommendations.
- First payment on sign up date - tick this checkbox to charge your member with fees (Administration and Joining Fee and Prorata) on the sign up date.
- Contract end prorata - this option will calculate the overpayment in case of changing the Contract end date. The amount will be calculated based on the number of remaining days.
- Agreement template - select the given agreement template.
- Template of rules - select the given Terms and Conditions template.
Visibility
Decide if you want to limit this Payment Plan visibility to given employee roles in your club. Otherwise, skip this step.
Early termination fee
- Is early termination fee charged - tick this checkbox to make this option available.
- Dynamic fee part - select Remaining.
- Fee calculation - select Percentage.
- Value - enter 10.
In this case, the member who wants to end the contract before the Commitment period, will be obliged to pay 10% of the remaining value of the Contract.
Initial payment for online registration requirement
- Initial payment is required during online registration - tick this checkbox to charge your members with the initial payment during online registration.
Assigned clubs
Decide in which club the Payment Plan will be available for purchase.
Access rules
Select the relevant Access rule for this Payment Plan.
Available for
Decide in which modules this Payment Plan will be available for purchase.
4. Click on the Insert button to add this Payment Plan.