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Increasing Collection Rates on Continuity

by DanFaggella
2 replies
I run an online business making between 30-40k/mo in the martial arts niche.

Most of our revenue comes from $57/mo continuity programs, and recently we've hit a wall with regards to collections. We have a lot of banks (esp internatinoal, but national, too) who occasionally won't collect our payments.

Alternatively, sometimes people won't know what the charge is (or sometimes they do) and will tell the bank not to accept the charge, or spouses cancel it on their partner.

We realize that we may need to:
- Contact banks (via fax) and ask that they allow for the transaction because of the proof that we have of this client purchasing
- Call customers and ask them to pay remaining balanced on overdue account, which happens frequently with thousands of customers globally

What should we do here?

I'm thinking about hiring a call center or collections agency, but don't have experience in this field. ALSO - I am wondering how to (a) get banks to accept more charges (all are legit, of course, we are not crooks), and (b) get banks to re-up overdue charges FAST when they turn them down.

Anyone have experience in this domain?

Thanks so much,
- Daniel
#collection #continuity #increasing #rates
  • Profile picture of the author TheShark
    Not enough information....also, there might be a cool alternative for you.

    Are you just dinging the credit card every month? If so and the banks are causing you problems, if could be the processor you are using.

    Are you just directly debiting a bank account? If so, then probably expect more problems.

    Do you have a good company name (that can make a big difference).

    Finally, if in the US, and having problems, have you considered an authorized check by fax situation (you actually print the checks with their written permission/via contract) each month?

    TheShark
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    • Profile picture of the author DanFaggella
      Mr Shark, thank you for the insight, my response:

      Are you just dinging the credit card every month? If so and the banks are causing you problems, if could be the processor you are using.
      Yes, I am charging customers monthly. PowerPay is my prime processor - what might I do to attain a better result?

      Are you just directly debiting a bank account? If so, then probably expect more problems.
      I am hitting credit cards, not bank accounts, usually. Are credit cards more or less of an issue?

      Do you have a good company name (that can make a big difference).
      I run a rather small business at present, I'm not sure where our "company name" stands - where might I find this out? The company name is "Science of Skill, LLA", is there anything right or wrong with that?

      Finally, if in the US, and having problems, have you considered an authorized check by fax situation (you actually print the checks with their written permission/via contract) each month?
      I have never once heard of this option - what does it require, and so any BIG or successful subscription businesses use it? Only then would it be considered.

      Thank you, and looking forward to hearing from you - these are some points I hadn't thought through before!

      Best,
      - Daniel
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