Direct Debits for Gyms

When it comes to membership payments, the go-to method for gyms in Australia and New Zealand is Direct Debit. This guide provides everything you need to know about Direct Debit management, offering insights into this recurring payment method.

In Australia, approximately 1 in 5 Australians have a gym membership, while in New Zealand, gym membership penetration reached 13.6% in 2023 . Many of these memberships are paid via Direct Debit, either from a bank account or a credit/debit card.

For gyms and fitness businesses, Direct Debits offer an efficient, reliable way to collect payments from members.

Keen to know more about Direct Debit management for your gym? In this guide to Direct Debits for gyms, you’ll find:

Let’s get stuck in!

Direct Debits Explained

A Direct Debit is an agreement where a member authorises a business to collect recurring payments automatically – either from their bank account or their credit/debit card. In Australia, this process is facilitated through the Bulk Electronic Clearing System (BECS), and in New Zealand, the system is overseen by Payments NZ.

Under BECS and Payments NZ, members are afforded several protections:

It’s worth noting that while these protections are in place, a member is still obliged to adhere to the terms of the gym contract they’ve signed. So, if they do make a claim or cancel a Direct Debit authority, they may still need to cover an amount owed as per their contract.

Bank vs. Card Direct Debits: What’s the Difference?

In both Australia and New Zealand, Direct Debits can be set up from either a bank account or a credit/debit card. Both are automated payment methods that allow a business – like your gym – to collect membership fees on a recurring basis without members needing to manually pay each time.

Here’s how they compare:

Bank Account Direct Debits

Card-Based Direct Debits

Why Offer Both?

Providing both bank and card Direct Debit options gives your members greater choice and convenience, and your gym more flexibility in how payments are collected.
Some members might prefer using a credit card for rewards points or to manage their spending. Others will opt for bank account Direct Debit to avoid interest charges or expiry issues.

Either way, both methods are:

Benefits of Direct Debit for Gyms

As a gym operator, choosing to let members pay by Direct Debit can bring several benefits:

Reliable & Predictable Revenue

For many, this is the biggest benefit. Using Direct Debits to collect membership payments can help you maintain a steady, consistent cash flow, reducing financial uncertainty.

This makes it easier to forecast future performance and set budgets for your business, allowing better planning for future investments and expenses.

Plus, Direct Debits are a set-and-forget payment method, encouraging members to stick with you. No need to manually pay each month or pay for each visit separately, increasing retention and member lifetime value.

Flexibility & Control Over Collections

As a pull payment (rather than push), Direct Debits give you the flexibility to adjust the amount and timing of collections.

If you want to make a change, you’ll need to give members notice of the new amount, date, and frequency of payments. We recommend you give sufficient notice before the change and collection.

So, you’re in control of collections and making changes, while members are protected.

Fewer Payment Failures & Late Payments

Compared to payments by card, Direct Debits by bank account tend to have lower reversal rates.

With recurring card payments, cards often expire after a relatively short period. Bank accounts tend to stay the same, and many banks offer switching services that transfer Direct Debits to a new account.

Direct Debits typically fail for two reasons – insufficient funds or a cancelled instruction. You should be able to set your gym management software up to automatically notify members when payments fail, with details of what to do next.

Cost Savings

Especially compared to credit card payments, Direct Debit fees are usually significantly lower. Plus, gym Direct Debits reduce the cost of handling cash and processing one-time payments.

Benefits of Direct Debits for Gym Members

So why should your gym offer Direct Debits for your gym members?

Convenient, Hassle-Free Payments

Your members don’t need to remember due dates or manually make payments for their membership. With Direct Debits, payments are automatically taken, ensuring members always have access to use their membership.

Members can focus on their fitness goals without worrying about missed payments or having to update payment details regularly.

Budget-Friendly, Predictable Costs

Especially where there’s a fixed-term contract, paying by Direct Debit can help spread the cost of a gym membership over time, making it more affordable.

Many gyms offer discounts or perks for members who pay via Direct Debit, so members may enjoy premium benefits and long-term savings.

Plus, members can budget more effectively with fixed, regular payments.

Security & Peace of Mind

Consumer protections in both Australia and New Zealand add extra security for members. Members know that they’ll be notified in advance of any changes to payment amounts and schedules. And if an error occurs, they’re entitled to a full and immediate refund from their bank.

Plus, members are given the control to easily cancel the payment at any time by contacting their bank or even via their bank account online.

How Do People Pay for Gym Memberships in Australia & New Zealand?

When it comes to paying for gym memberships in Australia and New Zealand, gym members usually choose one of two options:

1. Direct Debit (Bank Account or Card)

This is the most common and recommended way to collect ongoing membership payments. Members authorise your gym to charge their bank account or card automatically at regular intervals.

Direct Debit is widely used across the fitness industry, including 24/7 gyms, health clubs, swim schools, and functional training facilities.

2. Upfront Payments

Some members prefer to pay for their memberships in full – whether that’s monthly, quarterly, or annually. This is more common for:

These payments are usually made via EFTPOS, credit/debit card, or cash (though cash is becoming less common).

Why Direct Debit is Preferred by Most Gyms

Most gyms lean toward Direct Debit for a few key reasons:

If you’re a gym owner, choosing a Direct Debit setup that allows both bank and card payments gives you the flexibility to meet your members where they’re at, while keeping your business running smoothly.

How to Choose the Best Payments Partner for Your Gym

Want a fitness business where things run smoothly? Selecting the right gym billing software partner will help you:

Here’s what to look for in a payments partner:

All-in-One, Real-Time Visibility

Ideally, your payments partner will also be your gym management software partner. By choosing an all-in-one gym management software solution with embedded payments, you’ll have live access to up-to-date, complete payments data.

No delays. No switching between systems to cross-reference data. No need to deal with multiple partners. You’ll have the info you need to power better member experiences and get essential tasks completed fast.

Flexible Collection Dates

Collect membership payments at the optimal time for your business and your members. How? Thanks to the flexibility to choose from a range of billing dates.

This makes it possible to collect fees as soon as a member joins – no need for pro-rata payments by card. And if members have more flexibility over their billing date, it can reduce failures as they are able to choose a date that aligns with payday.

Automated Access Control

Choose to automatically restrict access for members who have missed a payment. By selecting an all-in-one gym management system with embedded payments and integrated access control, this is possible.

When a member makes a catch-up payment, access should automatically be granted without delay. This also makes it possible to let members access your club as soon as they sign up.

Automated Resubmissions & Notifications

When a Direct Debit payment fails, your system should be set up to automatically alert members via email and/or SMS , So, they know what to expect next.

Your system should also reattempt to collect payments that have failed due to insufficient funds. This helps maximise collection rates and gives members a chance to catch up without needing awkward follow-ups.

Look for a system that makes these processes feel seamless to the member. Clear messages, helpful reminders, and a smooth path back to “active” status.

Accurate Revenue Forecasting

Direct Debits give you visibility into future billing, so you can forecast with confidence. With access to real-time payments data and automated reporting, you’ll be able to set more accurate budgets and make better decisions around staffing, investment, and marketing.

This kind of forecasting becomes even more powerful when integrated with your member retention insights and growth plans.

Support for Your Members

Payments are a sensitive topic, and delays or errors can cause frustration. A strong payments partner should act as an extension of your team, offering local customer support that can answer member questions quickly and respectfully.

This reduces pressure on your staff and helps keep your member experience on point, even when issues come up.

Support for You and Your Team

Behind every smooth-running gym is a team that’s well-supported. Look for a partner that offers onboarding, troubleshooting, and ongoing guidance. Your payments system should evolve with your business, not hold it back.

Regular check-ins, performance insights, and support from a local team that understands the Australian and New Zealand fitness markets can make all the difference.

Data Security & Compliance

Any gym or payment provider handling card payments in Australia or New Zealand must comply with PCI DSS.

PCI DSS (Payment Card Industry Data Security Standard) is a global set of security standards designed to ensure that any business that accepts, processes, stores, or transmits credit card data does so securely.

Direct Debits via bank account don’t fall under PCI DSS, but you still need to protect that data under local privacy laws (like Australia’s Privacy Act and New Zealand’s Privacy Act 2020).

If you’re using a software or payment provider (like Xplor Gym), you should ensure:

Choose a Partner That Does It All

Ideally your Direct Debit provider will also be your gym management software partner, as an all-in-one solution makes it simpler to maximise collection rates and avoid common issues.

Switching to a New Gym Direct Debit and Software Partner

If you’re already collecting membership payments using Direct Debits but want to switch to a new partner, the process should be straightforward – especially if you’ve chosen a provider that knows how to handle transitions in the fitness industry.

Here’s a simple 3-step switch:

Managing Direct Debit Details and Rejections

Your gym management software should make it easy to track and manage payments in one place.

That includes:

These features reduce stress for both your team and your members and mean fewer awkward phone calls or awkward “you’ve been locked out” moments at reception.

The Wrap-Up…

Direct Debit is the most popular way to collect membership fees for gyms – and for good reason. It gives you, the gym operator, predictable income, less admin, and more control. And it gives your members a seamless, stress-free way to stay on top of their payments.

If you’re ready to take the hassle out of managing memberships, Xplor Gym can help. With embedded Direct Debit and all-in-one gym management tools, we do the heavy lifting so you can focus on running a stronger business.

Ready to get started? Let’s chat. Request a demo

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