What is a pro-rata?

Membership payments are made in advance to cover the days within a member’s nominated payment frequency. For a weekly payer, this would mean 7 days worth of payment starting on the day their payment was taken. When a suspension is placed on an account, a pro rata amount may become due. The pro rata amount is worked out as a daily rate and any days already paid for but now suspended, will become credit.

The same principle applies when suspensions are ended. If the suspension ends midway between a member’s payment cycle, the days from when the suspension ends until their next debit, becomes overdue. If the member still has credit from when the suspension was placed, it may credit the overdue in part or entirely.

Examples:

1. A weekly debit on 19/03 covers the account until and including 25/03. If you start your suspension on 24/03, this means that this account has a credit of 2 days (24th & 25th) – the credit $ is worked out by calculating the daily total.

Because of this 2 days’ worth of credit, it means that the next Thursday weekly payment on 14/05 will be less than the normal membership payment amount.

  2. A membership is started on 19/3 but the member wishes to start their weekly payments on 21/3. This means that their first weekly payment would incur an extra pro-rata charge for 2 days (19th and 20th). Once this first payment is made, the payments will resume to their normal weekly rate. This also applies if a member decides to change their payment date to a later date, which will incur a pro-rata charge.

If you need more information on payments, get in touch or even better - use the notifications tab in your app which will send us a message linked to your account.