« Finances

Financial obligation is one of the major responsibilities of fraternity and sorority members. While most members understand their dues pay for socials, house decorations, and recruitment t-shirts, few realize just how important their payments are. Greek chapters use members dues to pay for chapter insurance, not to mention the chapter’s own dues to the fraternity or sorority headquarters. Bottom line: without members’ dues, fraternity and sorority chapters would literally cease to be.

As members’ dues are vital to the well-being and survival of fraternity and sorority chapters, the method by which payments are collected is equally important. In the past, collecting payments by hand and in person was common practice and worked well for many fraternities and sororities. However, with the convenience of the internet, online banking, and credit card payments, many chapters have seen improved results with online dues collections. While some chapters may still have their reservations about going virtual, there are a number of benefits to collecting chapter dues online.

Safer

Simply put, collecting payments online is safer than collecting them in person. Even for the most organized treasurer, mistakes are inevitable. Checks are misplaced, money goes missing, and people forget who owes what. With physical collections, human error is a substantial factor that, more times than not, comes into play. Fortunately, chapters can avoid this problem by collecting their dues online. With online collections, payments are made without any human interference. This means the money goes directly from one account to another and doesn’t have to go in the mail, be delivered at chapter meeting, or sit in someone’s backpack for a week.

Faster

Online collections are faster than collecting payments in person. While chapters who favor their tried and true method of collecting money at chapter meeting might argue this point, in reality, there’s nothing to argue. As stated before, with online collections, money basically moves from one account to another. And while this transaction can sometimes take up to two or three business days, on average it is still much faster than collecting dues in person, driving to the bank, and depositing the payments. Online collections also make financial reporting faster as the chapter treasurer can see in real time how much money has been collected and which members haven’t paid.

Convenient

As collecting dues online is safer and faster, most chapter treasurers find it is also more convenient. Treasurers are able to assess dues, collect payments, and see who is delinquent with a few clicks of the mouse. Online collection also allows treasurers and executive chapter members to view chapter finances when it is most convenient for them (between classes, during lunch, etc.). Collecting chapter dues online is not just convenient for the chapter executive members, but also for the fraternity and sorority members. As most college students today have credit cards, or at the very least a debit card, making online payments via card is easier than writing checks or keeping enough cash on hand. Online payments have the added benefit of multiple online records: the collection system makes a record of the payment, the chapter’s bank account makes a record of the deposit, and the member’s bank account makes a record of the withdrawal. Thus, members can see their payments through the online collection system as well as their personal bank account.

Payment by Parent

Finally, collecting dues online allows parents to make payments for their students. While yes, parents could write and mail checks to their son’s or daughter’s chapter, online payments are again, easier, faster, and more convenient. Online payments also decrease the chance for confusion on the part of the parents. Parents can go online, see the amount due, and make the payment on the spot. They don’t need to worry about nagging their son or daughter for the chapter’s mailing address, getting the payment amount wrong, or transferring money to their student’s bank account.

Finding An Online Collection Provider

If you’re looking for an online collection provider, there are a number to choose from. We at ChapterTalk recommend ChapterBoard, as they have low rates and a user friendly collection system. However, no matter what provider you choose, make sure to do your research. When interviewing potential providers, ask about their rates, deposit schedule (when payments are deposited into your chapter’s account), and website security. Additionally, ask for a preview of their online system so you see how user friendly, or unfriendly, it is. For more suggestions on how to pick your collection provider, we recommend reading: Online Collection Services: Finding The Best One For You.