Payments and Billing for BJJ and MMA Academies: Complete Guide

The money coming in is the engine of your academy and what allows you to keep doing what you love. Late payments, declined cards, and awkward collection conversations drain the energy that should go toward teaching and growing your business.

This guide covers everything you need to systematize your academy’s payments: from structuring your pricing to automating collections and handling non-payments without losing students or your peace of mind.

Table of Contents

1. The Real Cost of Poor Payment Management
2. Pricing Models for Academies
3. Automated Recurring Billing
4. Handling Failed Payments
5. Communication About Late Payments
6. Payment Methods by Region
7. Basic Financial Reports
8. Choosing Payment Software

The Real Cost of Poor Payment Management

Most academy owners underestimate how much poor payment management costs them. It’s not just the money you don’t collect; it’s the time, energy, and students you lose in the process.

The Numbers That Matter

Consider a typical academy with 80 students at $65/month:

Theoretical monthly revenue: $5,200

Typical losses without an automated system:

Annual total: Between $2,000 and $4,000 in lost or delayed revenue, plus the lost hours of your time and energy.

The Invisible Cost: Your Energy

Beyond the numbers, there’s a cost that doesn’t appear on any spreadsheet: mental wear.

Every awkward conversation about money:

• Drains your energy for teaching.
• Potentially damages the relationship with the student.
• Makes you avoid the problem (making it worse).
• Creates a strange dynamic in class.

The academy owners we work with at MatGoat mention payments as one of the most stressful parts of running their business. It doesn’t have to be that way.

The Alternative: Systems That Run Themselves

Academies with well-configured payment systems give you:

• 40% fewer failed payments thanks to automatic retries.
• 60% less time spent on payment administration.
• Zero awkward conversations — the system handles communication.
• Better retention — fewer students leave due to administrative friction.

The investment in automating payments pays for itself in weeks, not months.

Pricing Models for Academies

Before automating collections, you need a clear pricing structure. The model you choose directly affects your cash flow, retention, and ability to grow.

Model 1: Single Monthly Fee

The simplest: everyone pays the same for unlimited class access.

Example: $75/month for access to all classes.

Advantages:

• Easy to explain and sell.
• Minimal administration.
• Students know exactly what they’re paying.

Disadvantages:

• Doesn’t capture value from students who would pay more.
• Can be a barrier for students who only want to train 1-2x/week.
• Difficult to adjust prices without affecting everyone.

Best for: Small academies (less than 50 students) that want simplicity.

Model 2: Frequency-Based Tiers

Different prices based on how many classes per week.

Example:

• 2 classes/week: $55/month.
• 3 classes/week: $70/month.
• Unlimited: $85/month.

Advantages:

• Lower entry point attracts more students.
• Captures more value from frequent students.
• Allows natural revenue increases as each student’s commitment grows.

Disadvantages:

• Requires attendance tracking.
• Students may feel limited.
• More administrative complexity.

Best for: Medium-sized academies that want to balance accessibility with revenue.

Model 3: Program-Based Tiers

Different prices based on program type.

Example:

• Adult BJJ: $75/month.
• Kids BJJ: $55/month.
• BJJ + No-Gi: $95/month.
• Competition Classes: $110/month.

Advantages:

• Reflects the different value of each program.
• Allows specialization.
• Parents appreciate differentiated pricing for kids.

Disadvantages:

• Can complicate the buying decision.
• Students may feel like they’re being charged for everything.

Best for: Academies with multiple differentiated programs and many classes.

Model 4: Base Membership + Add-ons

A base fee with optional add-ons.

Example:

• Base membership (fundamental BJJ): $65/month.
• +Advanced classes: +$15/month.
• +No-Gi: +$15/month.
• +Private lessons (2/month): +$90/month.
• +Video access: +$10/month.

Advantages:

• Maximum flexibility for the student.
• Multiple billing opportunities.
• Low base price reduces barrier to entry.

Disadvantages:

• Can be somewhat complicated for certain students.
• More complex to manage and communicate.
• Requires software capable of handling multiple products.

Best for: Large academies with diversified offerings.

Which Model to Choose?

The key is to start simple and add complexity only when volume justifies it. Each additional price tier requires more administration unless you have an automated payment system.

For more on pricing strategies, check out our guide Structuring Membership Tiers for BJJ (coming soon).

Automated Recurring Billing

Manual billing is the enemy of predictable cash flow. Every month you depend on remembering to charge, sending invoices, and chasing payments is a month of unnecessary stress.

Why Automate

Typical manual billing:

1. On the 1st of the month, you generate receipts or wait for payments.
2. You send them by email or WhatsApp.
3. You wait for them to pay.
4. Day 5: you start asking those who haven’t paid.
5. Day 10: some still haven’t paid, more messages.
6. Day 15: you decide whether to block access or not.
7. End of month: some paid, others didn’t, and you’re exhausted.

Automated billing:

1. The system automatically charges on the agreed date.
2. If it fails, it automatically retries.
3. If it keeps failing, it sends notifications to the student.
4. You receive a report of who paid and who didn’t.
5. You only intervene in exceptional cases.

Elements of an Automated System

1. Payment Authorization

The student authorizes automatic charges to their card or bank account. Each month, the system charges without anyone having to do anything.

Basic setup:

• Fixed billing date (recommended: 1st or 5th of the month).
• Clear description on the bank statement.
• Notification to the student before charging (optional but recommended).

2. Automatic Retries

When a payment fails (expired card, insufficient funds), the system automatically retries.

Recommended retry strategy:

• First retry: 3 days later.
• Second retry: 5 days after the first.
• Third retry: 7 days after the second.

Automatic retries recover between 30-50% of failed payments without any intervention from you.

3. Automatic Card Updates

Cards expire. The best payment processors have agreements with card networks to automatically update the data when a card is renewed.

This is invisible to you and the student, but prevents failed payments due to expired cards.

4. Automatic Notifications

The system sends emails or SMS at key moments:

• Payment confirmation when it occurs.
• Upcoming payment notice (optional).
• Failed payment notification with link to update method.
• Reminders for pending payments.

Billing Dates: When to Charge?

Option A: Same day for everyone

All students are charged on the 1st (or 5th) of the month.

• Advantages: Simple, predictable, easy to reconcile.
• Disadvantages: Server load peak, all problems occur the same day.

Option B: Anniversary date

Each student is charged on the day of the month they enrolled.

• Advantages: More distributed cash flow, fewer problem peaks.
• Disadvantages: Harder to reconcile, less predictable.

Our recommendation: Same day for everyone, preferably between the 1st and 5th of the month. Simplicity outweighs the small advantages of the anniversary model.

Handling Failed Payments

Even with the best system, some payments will fail. The difference between academies that lose money and those that don’t is how they handle these cases.

Why Payments Fail

Recommended Recovery Flow

Day 0: Payment fails

• System logs the failure.
• Student not notified yet (may be temporary).

Day 3: First automatic retry

• If it works: all resolved.
• If it fails: automatic email to student.

Subject: Problem with your payment at [Academy]

Hi [Name],

We couldn't process your monthly fee for [Month].

This usually happens due to an expired card or temporarily
insufficient funds. You can update your payment method here:

[Button: Update Payment Method]

If you have any questions, reply to this email.

Best regards,
[Your name]

Day 8: Second retry + second email

• Slightly more urgent tone.
• Mention that access may be affected.

Day 15: Third retry + personal message

• A human intervenes here (you or your manager).
• WhatsApp message or call.
• Goal: understand if there’s a bigger problem.

Day 21: Decision on access

• If no response: suspend access.
• Send clear email explaining how to reactivate.
• Keep the door open for return.

The Most Common Mistake

Many BJJ and MMA academy owners suspend access too late (or never). This creates:

• Students training for free for weeks.
• Resentment when you finally act.
• A signal to other students that payments are optional.

The rule: Be understanding of circumstances, but firm with deadlines. If someone has genuine financial problems, offer options (pause, temporary reduction). But if they simply don’t pay without communicating, access should be suspended.

For how to communicate late payments, check out our guide Communication About Late Payments (coming soon).

Communication About Late Payments

Talking about money is uncomfortable. But the discomfort comes from improvisation, not the topic itself. With prepared messages, these conversations become routine.

Communication Principles

1. Assume good intention

Most failed payments are not attempts to not pay. They’re expired cards, forgetfulness, or temporary problems. Your tone should reflect this.

❌ “Your payment has failed. Regularize your situation immediately.”

✅ “We had a problem processing your fee. It’s probably something simple to resolve.”

2. Make action easy

Every message should have a clear path to resolve the problem. Don’t make the student guess what to do.

❌ “Please contact us to resolve this matter.”

✅ “You can update your card here: [link]. It will take less than a minute.”

3. Escalate gradually

First message: informative and friendly. Second message: more direct. Third message: clear consequences. This escalation is fair and gives opportunities to resolve.

4. Separate money from the relationship

In class, treat the student normally. The training relationship and administrative relationship are separate.

Scripts by Situation

Automated email #1 (day of failure):

Subject: Small issue with your [Month] fee

Hi [Name],

We tried to process your [Month] fee but it didn't work.
Don't worry, this usually happens when the card has expired
or there was a temporary problem with the bank.

You can update your payment method here:
[Button: Update Payment]

If you've already resolved this through another means, ignore this message.

See you on the mats!

[Your name]
[Academy]

Automated email #2 (day 7):

Subject: Reminder: [Month] fee pending

Hi [Name],

Your [Month] fee is still pending. We've retried the charge
without success.

To avoid interruptions to your training, update your
payment method before [date]:

[Button: Update Payment]

If you're having difficulties or need to discuss options,
reply to this email. We're here to help.

Best regards,
[Your name]

Personal WhatsApp (day 14):

Hi [Name], how are you?

I'm writing because we've been trying to process your
fee for a couple of weeks without success. Is everything okay?

If there's a problem with the payment method, here's the
link to update it: [link]

And if there's something else we should discuss, let me know
and we'll find a solution.

Suspension email (day 21):

Subject: Temporary suspension of your membership

Hi [Name],

Since we couldn't process your [Month] fee and we haven't
received a response to our previous messages, we've
temporarily suspended your class access.

We understand that unexpected things happen. When you're ready
to return, you just need to:

1. Update your payment method here: [link].
2. Access is automatically reactivated.

If you'd prefer to talk before reactivating, I'm available.

We hope to see you back soon.

[Your name]

Special Cases

Student with genuine financial difficulties:

If someone tells you they’re going through a difficult time, you have options:

• Temporary pause: 1-2 months without charging, keeps their history.
• Temporary reduced fee: 50% for X months.
• Pay what they can: Something is better than nothing and them leaving.
• Exchange: Help with cleaning/management in exchange for training.

The important thing is that THEY initiate the conversation. Don’t proactively offer discounts to someone who simply doesn’t pay.

Student who avoids the topic:

Some students keep coming to class ignoring messages about payments. This requires an in-person conversation:

"Hey [Name], do you have a minute after class?
[After class, in private]
I wanted to talk to you about the fee. We've been trying
to process it for X weeks without success. Is there something we need to resolve?"

Direct, private, no drama.

Payment Methods by Region

The optimal payment method varies depending on where your academy is located. Offering the right options reduces friction and failed payments.

Spain

Main methods:

Recommendation for Spain: Prioritize SEPA Direct Debit. Lower cost, fewer failures, and Spaniards are used to paying gyms and subscriptions this way.

How to set up SEPA:

1. The student signs a SEPA mandate (direct debit authorization).
2. You provide their IBAN to your payment processor.
3. Charges are processed automatically each month.

The mandate can be digital (electronic signature) or paper. Digital is faster and integrates better with management software.

Mexico

Main methods:

Recommendation for Mexico: Card as main method for recurring, OXXO as alternative for those without cards or who prefer cash.

Note about OXXO: It’s very popular but complicates automation. The student receives a code, goes to OXXO, pays in cash. Useful as backup but not as main method.

Argentina

Main methods:

Recommendation for Argentina: Mercado Pago for simplicity, or card with installment option. Inflation makes annual payments with discounts less attractive.

United States

Main methods:

Recommendation for USA: ACH as main method (lower cost, fewer failures than card), card as backup.

Basic Financial Reports

You don’t need to be an accountant to understand your academy’s financial health. A few key numbers, reviewed regularly, give you control.

Essential Monthly Metrics

1. Monthly Recurring Revenue (MRR)

The sum of all active fees.

Example: 80 students × $70 average = $5,600 MRR

This number should grow month over month. If it drops, you have a retention problem.

2. Collection Rate

Percentage of billing you actually collect.

Formula: (Payments collected ÷ Payments billed) × 100

Target: 95%+

If you’re below 90%, your payment system needs urgent attention.

3. Pending Failed Payments

How much money is “in the air” awaiting recovery.

Review this number weekly. If it constantly grows, something is failing in your recovery process.

4. Average Collection Time

How many days on average payments take to process.

With automation, it should be 0-3 days. If it’s higher, you’re chasing payments manually.

Basic Monthly Report

Create a routine to review these numbers on the 5th of each month (when most charges have been processed):

Warning Signs

🚨 Red alert:

• Collection rate below 85%.
• Pending failed payments exceed 10% of MRR.
• MRR drops two consecutive months.

⚠️ Attention:

• Collection rate between 85-92%.
• Increase in failed payments compared to previous month.
• Cancellations exceed new sign-ups.

✅ Healthy:

• Collection rate above 95%.
• Failed payments resolved in less than 14 days.
• MRR grows or remains stable.

For deeper financial analysis, check out Financial Metrics for BJJ Academies (coming soon).

Choosing Payment Software

The right software automates 90% of collection work. But not all systems are equal, especially for martial arts academies.

Architecture Options

Option 1: Management software with integrated payments

Platforms like MatGoat that combine student management, attendance, and payments in one system.

Advantages:

• Everything integrated: the student, their attendance, and their payments in one place.
• Fewer tools to manage.
• Automations between modules (e.g., automatically suspend access if they don’t pay).

Disadvantages:

• You depend on a single provider.
• Fees may be higher than independent processors, although at MatGoat this isn’t the case.

Option 2: Management software + external processor

You use one software for management (students, classes) and another for payments (Stripe, PayPal, your bank).

Advantages:

• You can choose the cheapest processor.
• More flexibility.

Disadvantages:

• Two systems to sync.
• More manual work.
• No cross-automations.

Our recommendation: For most academies, integration outweighs the small savings of using separate systems. The time you save is worth more than the difference in fees.

Essential Features

Advanced Features

Questions to Ask Providers

1. What’s the total cost? Per-transaction fee + monthly fee + hidden costs.

2. What payment methods do they support in my country? Confirm SEPA, local cards, etc.

3. How do failed payment retries work? Automatic? How many? Configurable?

4. Can students update their payment method without my intervention?

5. What’s the data migration process like? If you have students with cards saved in another system.

6. How long do funds take to reach my account? Some processors hold for 7+ days.

7. What support do they offer? If there’s a problem with collections, do they respond quickly?

Red Flags

Avoid providers that:

• Charge fees greater than 3% on cards.
• Don’t support the dominant payment method in your country.
• Require long contracts before testing.
• Can’t show the complete failed payment and recovery flow.
• Have negative reviews about fund retention or support.

Implementing Your Payment System

If You’re Starting from Scratch

Week 1: Define pricing structure

• Choose your pricing model.
• Clearly define what each tier includes.
• Prepare materials to communicate pricing.

Week 2: Select and configure software

• Evaluate options with the questions above.
• Set up account and connect payment method.
• Create your products/memberships in the system.

Week 3: Configure automations

• Email sequence for failed payments.
• Configure automatic retries.
• Define suspension rules.

Week 4: Migrate students

• Communicate the change to current students.
• Collect payment methods (cards, SEPA).
• First automatic charge.

If You Already Have a Manual System

Step 1: Audit current situation

• How many students have late payments?
• What’s your current collection rate?
• How much time do you spend chasing payments?

Step 2: Clean data before migrating

• Resolve pending payments before switching systems.
• Update contact information for all students.
• Cancel memberships for students who no longer train.

Step 3: Gradual migration

• Start with new students in the automated system.
• Migrate existing students in groups.
• Keep the old system active until migration is complete.

Related Resources

• Structuring Membership Tiers for BJJ (coming soon)
• Communication About Late Payments: Complete Scripts (coming soon)
• Processing Fee Comparison (coming soon)
• Reducing Failed Payment Rates (coming soon)
• Complete BJJ Academy Management Guide
• Student Tracking Guide

This guide is part of the MatGoat Academy Management Series. For more resources on running a successful BJJ academy, explore our other guides.