Why are customers being billed during the suspension period?

If you have selected Billing Within Suspension Term, then the customers will be billed during the suspension period. Of course you knew that!

But if the billing within suspension term didn't work as expected, you may want to first find out more about how suspension works on iconnect360.

Now here’s perhaps something you may not be aware of about no billing during suspension.

If you have selected No billing within the suspension term, customers may still have a billing due during the suspension period. Why?!?!?

Reason:
If the suspension dates occur out of the billing cycle, a pro-rata amount still applies to the regular membership payment. Then the Customer will be billed for the pro rata on your organisation’s preferred billing day for the days outside of the suspension period.

Let’s look at this example.

Customer: Steve Smith
Billing Rate: $14.00 every 2 weeks
Suspension Term: 1-31 January 2013
Organisation’s Preferred Billing Day: Monday

Steve's regular payment is prorated for the billing dates 24/12/2012 and 21/01/2013.
Notice that Steve will be billed on 21 January 2013 even though it falls during his suspension term.

Note: The pro rata amount is based on the original billing rate of the membership. Let’s say Steve has been given a revised membership rate of $10.00. The original billing rate of $14.00 will be used in the pro rata calculation.

If you do not wish for Steve’s payment to be debited while he’s still away, here are the options that you can take.

• Option 1. Collect Steve’s debit on the 21/01/2013 with the next debit on the 04/02/2013 (after he resumes his membership).
  Steps: Open the debit dated 21/01/2013 and select Collect on Next Debit Date. The debit dated 21/01/2013 will then be scheduled to be collected on 04/02/2013. This means there will be two debits collected on 04/02/2013.
   
• Option 2. Change the debit billing date from 21/01/2013 to 01/02/2013 (on the date he resumes his membership).
  Steps: How do I change the debit billing date for a customer?
   
• Option 3. Waive the 3 days membership payment fee by removing the debit dated 21/01/2013.
  Steps: Open the debit dated 21/01/2013 and select Remove.

 Remember, you need to perform the action before the debit is processed!

Related article

• How do I suspend the membership of a customer?