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One of the less-exciting features of running a fraternity or sorority is collecting dues from the members. Any fraternity or sorority treasurer can explain how laborious the job is, however, it is arguably the most important job within the chapter. Without members’ dues the chapter has no money, and without money, the chapter cannot function. To lessen the stress and weight of collecting money for your chapter, we at ChapterTalk recommend using an online collection service (to learn more about the benefits of collecting your money online, read Collecting Dues Online: Why Going Virtual Is The Best Choice For Your Chapter).

There are a number of collection companies to choose from, however, just like potential new members, some are better fits for your chapter than others. So how do you wade through the choices and find the one that’s best for your chapter? Although we can’t make the choice for you, here are some questions you should ask yourself and the collection companies to narrow your search.

Note: In this article, “online collection services” refer to companies who collect members’ payments for fraternity and sorority chapters, while “debt collection services” (mentioned at the end) refer to third-party companies who resolve debt issues with members on behalf of the fraternity or sorority chapter.

Who can make payments?

Although the payments are the responsibility of your members, many members’ dues come from their parents. While some members receive money from their parents and pay on their own, other students may have parents who would like to pay it themselves. Thus, make sure to ask potential online collection services if they allow parents (or third parties) to make payments on behalf of an individual.

What methods of payment are accepted?

Popular methods of payment include credit cards, echecks and PayPal. Be sure to ask what methods of payment are accepted, and specifically, what credit cards are accepted (VISA, American Express, Discover and MasterCard).

Additionally, we strongly recommend asking if there are different rates associated with the use of different payment methods. Some online collection services will charge one rate for credit cards and another rate for echecks, while others will charge one rate for VISA cards and a different rate for Discover cards. This is important as those different rates can make a big difference in the amount your chapter ends up paying (for more information, read the following section on how much services cost).

How much does the service cost?

This is probably one of the most important questions to ask. Online collection services charge clients in a number of various ways, including:

• A set fee per chapter member
• A percentage of the total amount of money collected by the chapter
• A standard, set fee (assessed every year, quarter, semester, etc.)

Additionally, some online collection services charge clients in a combination of the above mentioned options (a percentage of the total money collected plus a standard fee per chapter member). When asking services about their costs, make sure you get the specifics (“we charge 4%” vs. “we charge a low percentage”). Once you have this information, compare companies, look over your chapter’s past financials and see what option works best. While paying per member may be the cheapest option for a small chapter, it might be the most expensive option for a larger chapter.

How are receipts issued for payments?

Today, most online collection services issue payment receipts in the form of emails or as a confirmation page upon completion of the transaction. If you have members who need a receipt they can print out (for their parents, etc.), or if you have parents paying dues who want to see a receipt, take these people into consideration when selecting an online collection service. Additionally, ask what information is shown on the receipt. Is it just a confirmation of the payment or does it have the payment amount, last four digits of the credit card, and the date?

Can your chapter track payments as they are made?

While this option may not be a priority for some chapters, it might be for yours. We recommend online collection services in which the chapter can track their members’ payments in real time. Not only does this give your chapter its own payment history (which comes in handy for payment disputes), but it also keeps your chapter updated on who has paid and when. As many chapters limit social activity for members who haven’t paid their dues, this is a great feature in that chapter executives can immediately know if a member makes a last-minute payment before a big party or event. Finally, the ability to track payments helps chapters stay in control of their finances. Although online collection services are meant to alleviate stress and work for chapter treasurers, we think seeing payments as they occur adds a certain sense of peace of mind for many fraternities and sororities.

When is money available to your chapter?

This is a vital question to ask and, surprisingly, it’s usually the most forgotten question on the list. Just like banks, when online collection services collect payments, there is usually a small delay between the time of collection and the time that the funds are available to your chapter. For some services, the delay is as short as two days while for others it can be up to two weeks. If your chapter doesn’t have a large savings account, having your funds available when you need it is of the utmost importance. Thus, make sure to ask when payments are deposited into your chapter’s account. Additionally, we suggest asking if there are options to request special deposits (in case you need the money before the standard deposit date), and if there are any fees or charges associated with such requests.

What type of online security is used?

As your members will be entrusting their credit card and bank account numbers to whichever online collection service you choose, it’s wise to ask about site security. Industry standard security is

What type of customer service is offered?

Customer service normally covers the chapter as well as its members, however it never hurts to ask. Usually, online collection services will assign an account representative to your chapter. This individual is normally your chapter’s contact for the collection company and is usually available to answer account-specific questions. While this is all and good, don’t forget about your members! Members can get confused, make double payments, or make mistakes in their payment information. If this happens, who do they talk to? Although their first instinct may be to ask a chapter executive, it’s probably better for them to contact someone at the collection company. Thus, ask about customer service, their hours of operation, and how easy it is to get ahold of someone (automated answers vs. person-to-person answers).

Is their website easy to use?

Finally, don’t forget to look at the actual site and test it out for yourself. Are there too many bells and whistles? Do the text and background colors make it hard to read the information on the screen? Is it easy and fast to make payments (how many steps or pages)? Does the site run slow, timeout, or give you error messages (this is usually indicative of an incomplete site or bad user testing)?

When you’re ready to browse the actual collection site, ask for either a test account or a demonstration. After all, what may work for someone else may be completely frustrating to you, and vice versa. And remember: watching a video of the site’s features is not the same as using it! Whenever you can, try things out for yourself. Besides, if the online collection service is as good as they promise, why shouldn’t you be able to see for yourself?!

Does your chapter need dues collection, debt collection, or both?

As stated at the beginning of this article, there is a difference between online collection services and debt collection services. In this article, online collection services has referred to companies who collected members’ payments for fraternity and sorority chapters. Debt collection services, on the other hand, are companies who collect debt from members on behalf of fraternity and sorority chapters. Debt collection services are usually needed when a member has an outstanding debt with the chapter, and, with the chapter executives, cannot resolve to pay the remaining amount (or refuses to pay the remaining amount). If your chapter is also in need of a debt collection service, be sure to ask when looking at online collection services. Most online collection services do not provide additional debt collection services, however you may be able to find one that does, or get a reference to another company (and even a discount for being referred). Even if your chapter doesn’t currently need debt collection services, it never hurts to ask. Plus, it could benefit your chapter in the future if any debt issues arise.