In this article, you will learn what manual debt collection is, how to activate it and use it
IMPORTANT: The current method of importing responses from the collection partner via XML file will be replaced within the next few months by the function of a manual update in the member account at file level.
What is manual debt collection?
Studios that charge membership fees on a recurring basis depend on members paying their fees or providing a valid payment method, like a credit card or a SEPA mandate, to conduct payment runs. If a studio is unable to collect the membership fee using a payment run or the member does pay in time, it is recommended that the studio implements a dunning process to automatically contact the customer in multiple stages. More information on how to set up a dunning system in Magicline can be found by following this link.
At the end of the dunning process conducted by the studio, the member can be transferred to a debt collection agency. Magicline offers various options:
Debt collection via Open API (recommended)
Magicline provides a programming interface called an API that allows debt collection agencies to connect their systems to Magicline's infrastructure. This allows for automatic updates, high reliability, and control over debt collection files. Debt collection agencies that have already been integrated can be found in the Magicline App Store. If you want a different debt collection agency to use the API, they must contact Magicline. Here you can find some information on how to get started:
Manual debt collection
Magicline also allows you to conduct debt collection runs and download the resulting handover XML-file that contains all open debts from your members. These file is then handed over to your debt collection partner, which can use the data to reach out to the members. On regular intervals or on demand, your debt collection agency can create a response XML-file to update your Magicline and affected member accounts accordingly. Please make sure that your debt collection partner is able to both import the file created by Magicline and to create a response file that can be imported in Magicline. The instructions are listed on this page.
Disclaimer: Magicline does not offer any support of troubleshooting the import file that needs to be generated by the debt collection partner.
Activation of the manual debt collection*
Follow these steps to activate manual debt collection
- Navigate to Finance / Finance / Debt collection runs in Magicline
- Read the text carefully and confirm with your debt collection partner that the technical requirements are met
- Click on Start now and fill in the necessary data. Click on Activate now to start.
*Please note, that in German and Austria this feature is only available upon request. Please contact your account manager in this case.
Creation of a debt collection run
- Click on Create collection run
- Select the locations that you want to include in the collection run and click on Create.
- Click on the preview and review the members that are included. If completed, click on Transfer to debt collection and download the file by clicking on Export as XML-File. Send the file to your debt collection partner and confirm that action. This is a necessary step to import the updated collection file.
Import of a debt collection response file
You can easily import the response file by clicking on Import debt collection data and selecting the file that is provided by your debt collection partner. It is important that the file generated by your debt collection partner is compliant with our guidelines on how to create the file.