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Can I charge an automatic penalty fee on contracts and packages?

Membership Contracts and Credit Packages can charge an automatic penalty fee

Written by Leah Cullins

Memberships and Credit Packages may incur an automatic penalty fee, a loss of credit, both, or neither.


Enabling Penalty Fees

Contracts and Package

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

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 get 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 Packages

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

Penalty fees are allocated to the purchase location, not the reservation location. For example, if a customer purchases a membership at Studio A but reserves a class at Studio B, any penalty fees incurred will be allocated to Studio A.

Credit Type

For Credits only, you must toggle on Penalty Fees for the Credit Type by going to Products > Credit Type > Edit.

For new Types, the Penalty Fee toggle is on by default.


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 incur 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 already been sold to customers, the system will charge no-show and late cancellation fees for each penalized reservation.

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