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Can I charge an automatic penalty fee on Memberships and Credit Packages?

Memberships and Credit Packages can charge an automatic penalty fee

Leah Cullins avatar
Written by Leah Cullins
Updated today

Memberships and Credit Packages can charge an automatic penalty fee, loss of credit, both, or neither.


Enabling Penalty Fees

Membership/Credit Type

First, you must toggle on Penalty Fees for the Membership and Credit Type by going to Products > Membership/Credit Type > Edit.

For new Types, the Penalty Fee toggle will be turned on by default.

To create no penalties, toggle the Penalty Fees off. This prevents fee setup and ensures customers aren't charged.


Membership/Credit Package

To select the type of fee, go to Products > Memberships/Credits > Contracts/Packages > Edit or create a new one.

Selecting fees on Memberships is currently in beta and is expected to be generally available soon.

Under Penalty Fee, select one of the four options:

  • Loss of Usage/Credit: Limited Memberships and Credit Packages

    • When a customer late cancels or no shows, they will lose the credit they used to make their reservation

  • Charge: All Memberships and Credit Packages

    • When the customer cancels late or no shows, they will be given their usage back, but will be charged your studio’s late cancel or no show fee.

  • Loss of Usage/Credit & Charge: Limited Memberships and Credit Packages

    • When the customer cancels late or no shows, they will lose their usage AND will be charged your studio’s late cancel or no show fee

  • No Fee: All Memberships and Credit Pacakges

    • When the customer cancels late or no shows, they will return their usage and not be charged any penalty fees.

You can set any fee, but penalties are only collected if the penalty toggle is enabled on the Type. No Fee won’t collect penalties, regardless of the toggle setting.


Credit Card Requirements

When monetary penalty fees are configured either as a charge or a combination of credit loss and charge, customers must have a credit card on file to purchase the package. This ensures the studio can collect any applicable fees.

Memberships will always require a credit card on file for purchases


Complimentary Credits and Credit Gift Cards

At this time, complimentary credits and credit gift cards, physical and email, will have a loss of credit penalty, regardless of the credit type setting.


Editing Penalty Fee

If penalty fees are enabled while editing and the contract/package has been sold to customers already, no-show and late cancellation fees will be charged for each penalized reservation.

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