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Direct Debit vs Card Payments: What's Best for Your Gym?
ClearGym Team • • 4 min read

Direct Debit vs Card Payments: What's Best for Your Gym?

One of the most important decisions you'll make when running a gym is how to collect membership fees. Get it wrong, and you'll spend hours chasing payments. Get it right, and money flows in automatically while you focus on your members.

Let's break down the two main options: Bacs Direct Debit and recurring card payments.

Bacs Direct Debit

The Good

Predictable Cash Flow: Direct Debit has the lowest failure rate of any payment method in the UK. Once set up, payments reliably come out on the same day each month.

Lower Transaction Fees: Typically 1-2% compared to 1.5-3% for card payments. On a £50 membership, that's an extra £5-10 per year per member in your pocket.

Member Convenience: Members don't need to remember to update card details when their card expires. It just works.

Professional Image: Direct Debit feels more "proper"—like paying for utilities or a mobile contract rather than a gym membership that might get cancelled.

The Challenges

Setup Time: Members need to provide bank details and set up a Direct Debit mandate. This adds friction to the signup process.

Fixed Schedule: You can only collect on specific dates (usually the 1st, 8th, 16th, or 28th of the month). Less flexibility than cards.

Bank Rejection Possible: If a member doesn't have sufficient funds, the payment bounces. You'll know within 3-5 days, but it's not instant.

Recurring Card Payments

The Good

Instant Setup: Members can start immediately using any debit or credit card. No mandate process.

Flexible Timing: Charge on any day of the month, perfect for pro-rata memberships or mid-month signups.

Immediate Feedback: Know within seconds if the payment succeeded or failed.

Familiar to Members: Everyone's used to paying by card. Zero learning curve.

The Challenges

Higher Failure Rate: Cards expire, get cancelled, hit their limits. Expect 10-15% of payments to fail each month vs. 2-5% for Direct Debit.

Higher Fees: Most payment processors charge 1.5-3% plus a fixed fee (typically 20p) per transaction.

Update Fatigue: You'll need to chase members when their card details change. This happens more often than you'd think.

Easier to Cancel: Members can simply block the payment with their bank. With Direct Debit, there's a proper cancellation process.

So Which Should You Choose?

For Most Gyms: Both

Seriously. Offer both options and let members choose. You'll get:

  • Easy signups for people who want to start immediately (cards)
  • Better retention and lower fees from members who choose Direct Debit
  • Backup payment method if one fails

Start With Cards If:

  • You're just launching and need members NOW
  • You run a lot of short-term programmes (4-8 weeks)
  • Your members are younger and prefer card payments
  • You need flexibility in billing dates

Prioritize Direct Debit If:

  • You have established members on long-term contracts
  • You want the most reliable cash flow possible
  • Lower transaction fees matter to your bottom line
  • You're running a more premium/established gym

The ClearGym Approach

At ClearGym, we support both payment methods through Stripe. Members can choose what works for them during signup, and you get the reliability of GoCardless for Direct Debit with the flexibility of Stripe for cards.

The system automatically:

  • Retries failed payments
  • Sends reminder emails before payment is due
  • Notifies you of any issues
  • Updates membership status automatically

No spreadsheets. No chasing. Just automatic, reliable payments.

Bottom Line

There's no single "best" payment method for every gym. The best choice depends on your business model, member base, and growth stage. But if you can offer both options, you'll maximize signups while keeping your cash flow healthy.

Ready to streamline your gym payments? Start your free trial and see how easy automated billing can be.