A business run on tight margins controls cash flow and enhances service with Fundtech’s Bacsactive-IP service bureau for Direct Debit payments.
Fundtech, a market leader in global transaction banking solutions, today announced that Fitness4Less, a UK-based network of low-cost gyms, has selected Fundtech’s Bacsactive-IP service bureau to support the fast, reliable and low-cost on-boarding of its members via Direct Debit arrangements.
Prior to engaging Fundtech, Fitness4Less used a Bacs service bureau that charged debit payment fees per transaction for every new and renewing customer. In order to process the charge, customers had to be re-directed from the Fitness4Less website, limiting the company’s ability to promote its services and offerings to its customers. To resolve these issues, Fitness4Less implemented Fundtech’s fixed-cost Direct Debit solution, Bacsactive-IP. As a result, it is able to offer its customers the ability to pay for membership on a 24/7 schedule—of particular importance to the company because a great deal of its online transactions are conducted outside of Bacs operating hours, in the evening and on weekends. It is also able to see the status of any customer in near-real-time, helping them to quickly resolve issues, effectively manage their cash flow and provide a high level of customer service. Finally, Fitness4Less realized significant cost savings using Bacsactive-IP compared to its previous Bacs service bureau.
“Our membership system is black and white,” says Emma Edwards, marketing director at Fitness4Less. “As soon as we have confirmation that someone has paid for their membership they can instantly get access to our premises. As soon as we get failure on their part, the membership is instantly closed and they won’t get access from that time.”
“By nature of its business, Fitness4Less operates on tight margins, so minimizing transaction fees and carefully managing cash flow are of critical importance,” says Kim Dennis, Head of Sales, Fundtech Merchant Services at Fundtech. “We’re excited to be able to provide Fitness4Less with a solution that drives significant cost-savings in accepting customers’ Direct Debit payments.”