No one likes to talk about money, especially when it comes to chasing late or failed membership payments. It can feel awkward and time-consuming, and let’s face it, no one wants to have those conversations. But at the end of the day, late and failed payments mean money that is NOT coming into your business.

Dishonour fees are a serious pain for both gym owners and members alike. The average Aussie gym membership costs around $63 a month, and when dishonour fees are added, it creates an unexpected financial burden. But let’s be honest, failed payments happen. There are plenty of reasons why, like unexpected costs, expired cards, or a missed update on payment details.

While these things can be out of your control, providing your members with the tools and support to keep their accounts up to date is crucial in reducing payment issues. It’s about finding a way to help your members stay on track, all while ensuring you maintain a steady cash flow.

Let’s take a look at some tips that can help your members avoid dishonour fees and keep everyone happy.

1. Know Your Member Demographics

Understanding your members and their payment habits is key. By recognising patterns and offering tailored solutions, you can help your members avoid payment issues before they arise. Here is what our data is telling us:

  • Bank vs. Credit Card: Payments from credit cards are 2.5 times more likely to fail than payments from bank accounts. Encouraging members to use bank accounts for recurring payments can reduce the chances of payment failures, ultimately saving them from dishonour fees.
  • Age: Younger members (18-24) are more likely to experience payment failures compared to older members. This could be due to financial instability or simply forgetting to update payment details. Offering younger members clear reminders and support can make a big difference.
  • Payment Frequency: Monthly payments are 60% more likely to fail than weekly payments. By offering weekly or fortnightly payment options, you can help members spread out their payments, making them more manageable and less likely to fail.
  • Payment Size: Smaller instalments are up to 7 times more successful than larger amounts. Encouraging members to select smaller, more frequent payments can ease their financial load and reduce the likelihood of missed payments.
  • Alignment to Payday: Aligning payment dates with members’ paydays can make it easier for them to pay on time. Consider offering this flexibility to help ensure payments go through smoothly, avoiding any surprises.

2. Offer Flexible Payment Options

The more flexible you can be, the easier it will be for your members to manage their payments without falling behind. Offering multiple options can help prevent payment failures and the dishonour fees that come with them.

  • Weekly or Fortnightly Payments: Weekly or fortnightly payments mean smaller amounts that are often easier to manage. Research shows that these smaller, more frequent payments are less likely to fail, reducing the risk of dishonour fees for your members.
  • Pay-As-You-Go: For members who are unsure about committing long-term, offering a pay-as-you-go option can give them more flexibility. This gives them the ability to pay for what they use and also reduces the financial burden of upfront payments.
  • Payment Alignments: Allowing members to align their payments with their payday can help them avoid missing payments due to insufficient funds. Offering this option increases the likelihood of payment success and helps your members stay on track.

3. Educate Your Members

The key to reducing failed payments is education. Helping your members understand the importance of keeping their payment details up to date and the consequences of failed payments can go a long way in preventing dishonour fees.

  • Regularly Update Payment Details: Encourage members to regularly check and update their payment methods. Expired cards or incorrect account details are common reasons for failed payments, and simple reminders can help them avoid these issues.
  • Explain the Consequences: Take the time to explain how missed payments and dishonour fees can affect their membership and the gym’s operations. The more they understand, the more likely they are to stay on top of their payments.
  • Send Reminders: A gentle reminder before payment is due can help members keep track of their obligations. By sending a quick note a few days before, you’ll give them the chance to check their accounts and ensure there’s enough balance to cover the payment.
Gym Dishonor Fees

4. Leverage Technology

Technology can ease the administrative burden of tracking payments and reduce the likelihood of failed payments for your members. By using automated tools, you can ensure a smoother payment process without additional strain on your team.

  • Automated Payment Retry: If a payment fails, automated retry systems can automatically attempt to process the payment again, giving your members another chance to pay without needing to manually follow up. This can improve the success rate of payments and reduce dishonour fees.
  • Mobile-Friendly Payments: Many members manage their finances on their phones. Offering mobile payment options can make it easier for them to stay on top of payments and update their details quickly, ensuring they don’t miss a payment.

5. Review Your Payment Policies

Having clear, transparent policies in place will help your members understand what’s expected of them and what they need to do to avoid dishonour fees. A well-structured policy benefits both your gym and your members.

  • Transparent Fee Structure: Be clear with your members about any fees associated with failed payments. When they know the costs upfront, they’ll be more motivated to avoid those fees.
  • Be Consistent: Apply your payment policies consistently. This ensures that all members know the rules and helps maintain trust across your community.

Wrap Up

Helping your members avoid dishonour fees is all about providing the right tools and support. By offering flexible payment options, educating your members, and staying proactive, you can keep the payment process seamless and stress-free for everyone. At the end of the day, happy, well-informed members are more likely to stay on track with their payments and that benefits your business too.

If you’re looking for a solution that can make managing payments and member information easier, Xplor Gym is here to help. Reach out today to see how we can streamline your gym’s payment process and support your members every step of the way.

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by Xplor

  • First published: 02 May 2025

    Written by: Xplor