Credit Cards

Dear Spring Run Member,

Since the recent Board Action Summary was emailed out this week, the awareness of this credit card issue before the Board has increased, followed by increased feedback on it! Communication is clearly the Key to Success. I use that phrase in big letters as a banner across the agendas of my weekly Department Head meetings because I believe so strongly in it. So, in the spirit of (more) communication, I thought I would share an exchange this morning between an Owner and our Controller, Michele, regarding the Owners’ objections to the proposal. I am sharing it with you because he said in the end… “Had I known this information, I would not have expressed such an objection”.  Or as close to that phrasing as possible, since I am quoting.

“We had an Owner stop by the office this morning to express their objection to the recent proposal presented by the Finance Committee, which had recommended to eliminate the use of credit cards to pay an owner’s monthly bill at the last Board Meeting.  I (Michele) shared the following information with him so he understood why this was proposed:

1)      We estimate the cost to the club in bank charges for credit card use by members for the monthly billing to be around $20,000 annually

2)      This $20,000 in fees results in almost $30 per member of the annual assessment. Not a huge number to be sure, but approximately 2/3 of owners who don’t use a card for their bill are paying extra for the convenience of 1/3 who do.

3)      We surveyed 29 area country and bundled golf club communities and we were one of only 2 clubs out of those 29 who allow members to use the credit cards for their monthly bill.

It is important to note also this proposal was recommended after much thought and research took place, and that the majority (if not all) members on the Finance Committee personally use credit cards as their form of payment on their monthly bills.  Once the Committee had these facts, they decided unanimously that this was the most fiscally sound decision. We also wish to remind you that as a convenience, we will be glad to set up ACH payments for our members.  ACH is when the funds are automatically drafted from your checking account. Just contact the office!

This proposal is now in front of the Board, who will take it up for a final decision Jan 26. All feedback in the meantime will be forwarded to them for consideration.  I hope this sheds some light on the reasoning behind the recommendation.

Feel free to respond back, and have a wonderful Thanksgiving!

Mike

 

 

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13 thoughts on “Credit Cards

    1. Mike Zigler

      Mr. Eberhardt,
      i wish it were that simple, but according to Florida Statutes, we are not allowed to do so, There are some exceptions, but as far as permitting a monthly practice of charge backs for several hundered people, that is illegal in this state.

  1. Richard Pascucci

    Mike: I agree 100% with the denial of the utilization of credit cards for the reasons stated–smart move on the part of Spring Run adn thanks. Happy Thanksgiving to you and the Staff

    Rich

    Richard A. Pascucci DO, FACOI Vice Dean for Clinical Education Professor of Medicine

    PH (215)871-6690 FAX (215)871-6695

    On Wed, Nov 23, 2016 at 3:33 PM, Springing Forward wrote:

    > springingforward posted: “Dear Spring Run Member, Since the recent Board > Action Summary was emailed out this week, the awareness of this credit card > issue before the Board has increased, followed by increased feedback on it! > Communication is clearly the Key to Success. I use that” >

  2. Jessie Lovatt

    I am in favor of using credit cards and I am wondering why those who wish to use this method of payment , cannot be charged a usage fee. This would eliminate the $20K that it costs the club for as mentioned, only 1/3 of the residents use this. Jessie Lovatt

    1. Mike Zigler

      Mrs. Lovatt,
      I replied to a similar question, so you may get that response notice via email, but briefly, that surcharge is not permitted by Florida Statute. It would make perfect sense, for sure. Currently, eleven states—California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas—and also Puerto Rico, ban surcharges.

  3. William Everett

    Spring Run as an organization is there for the benefit of the members. A multitude of services are provided for the members and some are well utilized, others marginally.

    If you start picking through the list of services, and then decide (or validate) that a majority of the members do not take advantage of services offered, will you start eliminating those specific services?

    Alternatively, if I am to pay for services that I don’t use, and you put a value on each of those unused services, can we start eliminating those from my annual membership charges?

    Electing to discontinue use of credit cards is a termination of one of the services that many members use. The number of members that use this service is a statistic you failed to provide in support of your position, nor did you indicate the percent of monthly dues that are paid via credit cards. Guaranteed on-time monthly payment is a benefit to the club that you seem to be willing to discard.

    Please be advised that I am absolutely against eliminating the benefit of credit card bill payment.

  4. Bob Owens

    There clearly is a cash flow benefit in automatic charges to members’ cards, assuming this charge is made early in the month and ahead of when the average payment is made by another method. In today’s low interest rate environment, I’m guessing this cash flow benefit is minimal, however.
    I do trust that the finance committee has carefully looked at the pluses and minuses prior to making their recomendation and I’d suggest that they make clear that they have looked at the “net benefits” by presenting not just the $20,000 savings, but other issues as well. It may be that they are assuming that ACH payments will be on the same time schedule as the current cc payments.
    I currently pay by credit card and use a “cash back” card so the change will cost me something. I still believe that the move to eliminate credit and debit card payments is the right move as the club should be looking at ways to keep admin costs down.
    Is the finance committee or staff considering any incentive to get members to pay via ACH?

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