Hitting a Pot of Gold with a Membership Club Business

Hitting a Pot of Gold with a Membership Club Business 

The need to belong is universal need. This human characteristic is the main motivation to open membership club business owing to the fact that everyone wants to be a part of something. This can be further reinforced if you can target a specific group pf people with the same interest. You can open membership clubs for all kinds interests imaginable, from sports, leisure, business, and even neighborhood memberships. All you have to do is to get them to join you.

But there's always a catch, and in terms of membership clubs, the challenge is managing the membership fees. If you're operating a membership club, you know that the membership fee fuels the club's existence. In terms of collecting the fees, soliciting from credit cards is a efficient option since you can be guaranteed that there will be funds coming in. To be specific, you can apply the recurring billing option of a high risk merchant account for a continuous and hassle-free flow of funds. But wait, it's not all good unless you know what to do.

The high attrition rate in membership club rate which will include a lot of refunds spell a challenge for membership clubs. Banks tend to not accommodate businesses with a high percentage of chargebacks because there will be more money coming out of the vault rather than coming in. Also, if your membership club has nationwide scope, the high volume of transactions tend to overwhelm your local processor, since they set a limited number of transactions per day. The solution to this setback is to get a high risk merchant account that will allow you an unlimited volume of transactions and will truly understand and teach you to avoid chargebacks. Operating a membership club can be lucrative business, with your shining personality to attract potential members and high risk merchant account as your investments.