We suspended members accounts who didn’t ‘Opt In’. Will these be unsuspended automatically?
No, for any CURRENT suspended members you will need to action the end of suspensions manually via WebExpress. It is recommended you use this time to begin reaching out to your members to best understand their position for recommencement once business reopens.
Many of our members are being provided a different service at a reduced fee after receiving ‘opt-in’ emails from members. Will their payments revert to the normal contact value?
No, you will need to remove the payment variation action for payments to go back to the contracted payment amount. If the payment amount is to be changed to an alternative amount other than the contracted value, you will need to process a future payment variation action for the amount to be effective from the members first debit date ON or AFTER the date your business reopens.
When will we receive the 10% holdback?
PaySmart will be releasing all holdbacks owing within 14 days of the reopen date. However, please remember that you may not receive the full 10% back if some chargebacks have been processed.
If the shutdown is still in place after 11 May 2020, we will review your business’ chargeback and refund activity – with a view to release funds owed by 25 May 2020.
What if my business IS NOT set to reopen when the Government restriction end?
Once Government restrictions have been lifted and a re-open date has been provided, if your business IS NOT in a position to recommence operations please contact our Account Management Team urgently on email@example.com so we can make the necessary adjustments to ensure your account remains on suspension until you confirm otherwise.
Failure to notify the PaySmart Account Management Team will result in your business account being reinstated as of the reopen date and member payments attempted accordingly.
Will our members contracts be extended?
Yes, all contracts will be automatically extended.
For example, on 1 Jan 2020 a member signed a minimum term of 26 fortnightly payments and then continued Until Further Notice (UFN). Up until the 23rd March the member would have made 6 fortnightly payments. The members minimum number of payments has been maintained at 26 and will still be contracted in a minimum term for a further 20 payments following the re open date.
What about members who suspended their contracts before the shutdown?’
If a member suspended their membership before 23 March 2020 (for whatever reason) and their suspension end date is AFTER the reopen date, then then original suspension date still stands.
Alternatively, if their suspension is due to end BEFORE the reopen date, their membership will be automatically activated that day with payments processed as per the members contract agreement.
Could our members first debit amount be different to their normal amount?
Yes. As of the reopen date, some members may be charged more than their regular debit amount on their first payment.
This could be due to one or more of the following:
- Any overdue fees the member owed prior to the 23rd March 2020.
If you DO NOT wish for the member overdue fees to be carried forward to their next debit please email firstname.lastname@example.org stating that you want to remove any overdue amounts and continue your member payments with a clean slate.
What if we DON’T want some members to be debited from the reopen date?
Between now and the to be confirmed reopen date, PaySmart encourage you to reach out to your members to find out their position once business can return to normal. This will allow you to action your member accounts accordingly via WebExpress BEFORE payments are due to recommence. This may include any cancellations you have received during the shutdown period, or any suspensions you wish to action to accommodate for your members financial position.
What happens if I DON’T process required member actions before the reopen date?
If NO actions are processed against member accounts before the reopen date, once your PaySmart business account is reinstated, member payments will recommence as they were PRIOR to the government’s announcement on 23rd March 2020.
Our business elected to create a new PaySmart account to sign up members to a new service offering during this time, will this account remain active and what do we need to do to reinstate our standard business account(s)?
For our clients who specifically requested an “option B” account and had members complete a new eDDR for payments/services during this time, the “option B” account will remain active as of the reopen date with payments processed as per each members contract terms. If your business is ceasing this service/terminating these contracts as things are going back to normal, you are required to CANCEL the members payments on the “option B” account via WebExpress BEFORE the reopen date.
Your standard business accounts will be reinstated as of the reopen date resulting in all member payments being processed as per their actions at that time. If you do not cancel the members on your “option B” account and they exist on your standard business account with PaySmart those customers will be debited twice.
Are there any tools that can help me manage my member account before the reopen date?
Yes, of course. There are a number of reports including “future action request” and “projected payments report” that you can view and there is a how to guide in WebExpress to help process the required actions.
10% HOLDBACKS ON PAYOUTS
Why was 10% of our payouts held back last week (week ending 27 March)?
Given that membership fees are charged in advance, a portion of the fees we paid out during last week (week ending 27 March) were for services you may not be able to deliver for the time being.
And according to the ACCC website, you’re prohibited under Australian Consumer Law from taking payments for services when there are reasonable grounds to believe the services won’t be supplied.
This means that members may be entitled to a refund on fees already paid or, alternatively, they could request a chargeback down the track.
In normal circumstances, we would simply deduct chargebacks from the next payout. However, given that we don’t know when your next payout will be, we need to hold back 10% of the funds currently held to ensure that we can pay any potential chargebacks that may occur.
Will we eventually receive the 10% that has been held back?
The amount received will vary on a case by case basis. In other words, if your business receives no chargebacks, you will get the full amount back. If there are chargebacks, these will be deducted from the 10% held and you will receive the residual amount left over.
PaySmart will continue to monitor chargebacks for your business over the coming weeks and months. Once we have a clearer idea of how many chargebacks your members are claiming, we’ll be in a better position to tell you exactly how much you can expect to receive back and when you will receive this.
CHARGING FEES WHILE YOUR BUSINESS IS CLOSED
Can we charge suspension or freeze fees?
No. According to the guidelines on the ACCC website, you are unable to charge these fees during the time that your business is closed. However, you will be able to charge these fees if you are continuing to provide a service and your members ‘opt in’ to being charged such fees.
Can we continue to charge membership fees while our business is closed?
Yes, you can. However, your members must ‘opt in’ before you can continue charging them. They need to do this via email.
Without their express written permission, you are not permitted to charge membership fees.
Can we ask our members to ‘opt out’ instead of ‘opt in’?
No. This is because your members are receiving a different service to what they initially signed up for. And they must formally agree to this new service and its related fees.
Is a verbal ‘opt-in’ enough?
No, your members must ‘opt in’ via email.
This process is no different to the one you have always followed when signing up new customers. It protects your business should a member change their mind or claim they never agreed to be charged.
How do our members opt in for us to continue charging them?
You’ll need to send an email to all your members asking them to respond if they are happy with the new service and related fee.
Please ask them to use the following wording in their email response:
|Same fee||I agree for you to continue deducting the current amounts being deducted at the current frequency, using my existing direct debit authority.|
|Reduced fee||I agree to a variation to my existing direct debit authority and authorise you to deduct [$X] from my account amount per [week/fortnight/month] for the service described above.|
What do we do once we receive an ‘opt in’ email from our members?
Save your member’s ‘opt in’ email as a PDF and upload the document via Web Express to the members profile under section ‘Customer DDR’ .
Can we continue collecting overdue membership fees that were due before 23 March?
Yes. This is the default position for all our clients (unless you have arrived at a different arrangement with your Account Manager).
Will you be holding back a percentage of future payouts?
We will continue to monitor chargebacks and we will be in contact with you to discuss options in the event the chargeback risk increases.
If a member cancels and is out of contract, can we take 30 days payment in line with their membership agreement?
No. As the physical location is closed, the member has no option to attend during that period.
Can we charge a one-off cancellation fee and cancel the member straight away?
Yes – but only if the terms and conditions in your membership agreement cater for this.
OUTDOOR PTS AND BOOTCAMPS
We provide outdoor training to one person at a time. Can we continue to charge our members?
Yes, however we need to see evidence that you are training people one at a time, outdoors.
Please send us a screenshot from your website or Facebook page to confirm that this is the case. Once we receive this, PaySmart will continue to charge your members the agreed fees.
What happens if the government prohibits outdoor PT or bootcamps in the future?
PaySmart will follow the same procedures we have already followed for other businesses. This means:
- All members will be placed on immediate suspension
- We will withhold 10% on the last payout to account for possible chargebacks in the future
- You are not permitted to charge any freeze or suspension fees
- Your members will need to opt in (via email) before you can continue charging any fees
Are the PaySmart Account Managers still working?
Yes. They’re all working from home and responding to emails as fast as they can. We appreciate and thank you for your patience during this especially busy period.
Is the PaySmart Contact Centre still operating?
Yes. Our Contact Centre team members are all also operating from home. This means they’re not able to make or take phone calls for the time being. But they’re also responding to emails as fast as they can.