10 Facts Full-Service Billing Companies Don’t Want You To Know

The phrase “Full-Service” has an alluring effect for most of us. It gives us a sense of security, a feeling of self-assurance, a sanctuary-like effect protecting us from the small risks and dangers that plague us the moment we leave our front doors and face the real world. In reality the term “Full-Service” is so appealing because what it really means is someone patting you on the back and saying “don’t worry we’ll take care of it.” And let’s face it, in a fast-paced world one less task, one less job to take care of in your already busy day is a blessing.

In the Martial Arts Industry, “Full-Service” is a concept that carries more than just a pat on the back and the assurance that everything will be magically taken care of. It isn’t like going to the gas station and have someone pump the gas for you. In the realm of Full-Service Billing vs. Automated Billing, Full-Service Billing means that you don’t have to deal with the whole mess of getting money from the occasional students who feel that they shouldn’t have to pay you for the invigorating martial arts lessons you’ve taught them. It’s true. Money exchange is often a messy business because when it comes down to a tug ‘o war where one person wants to take the money while the other wants to keep it.

Full-Service Billing seems to be the “Ultimate Middleman” that will smooth out these problems so that you remain on good terms with your delinquent student while, behind the scenes someone from your Billing Service is haggling them over overdue funds.
It’s sounds easy, efficient, and gets the job done. Or does it?
If we go back to the whole Tug ‘o War of Money Exchange, the same concept applies to the School Owner (You) and Full-Service Billing (The Billing Company You Use). One side is trying to keep their money while the other tries to take it.

Here are some quick facts about Full-Service Billing Companies that you may not know:

  • On Average 4-10% of Your Monthly Business Income goes to Billing Companies.
  • Most Billing Companies Hold Your Income until the end of the month, so you get paid according to their schedule and not yours.
  • If you use the contracts provided by a Full-Service Billing company, the student agreements will belong to the billing company, NOT YOU. 
  • In some cases, each student contract, money transfer, and even financial information is out of your hands.
  • If you no longer want to use Full-Service Billing there can be a CANCELLATION FEE OF UP TO 25$ FOR EACH STUDENT CONTRACT. **In some cases you can waive these fees.
  • For Billing Companies you can’t get access to student information and contracts.
  • There is no way to extract or export that financial information without going to the billing company, which in the end, they CHARGE YOU $10 for.
  • Any changes you want to make: put a student’s payment who is taking a vacation on hold, credit card payments, cash payments, changing payment amounts, requires you to call the billing company and any changes will usually take up to 5 BUSINESS DAYS.
  • You must pay a hefty cancellation fee for any student that cancels their training before a limited agreement or month to month contract is fulfilled.
  • For smaller schools, Full-Service billing companies charge a minimum usage fee whether you have 50 students or 100. **For smaller schools there are sponsorship packages available from ChampionsWay.


What Full-Service Billing really is taking a job that you could do more effectively and paying them for it. Most Full-Service Billing companies use the same gateways and the same technologies that are available to you, they just ad the customer service channel and charge you extra for it. Even the customer service channel is not as efficient as you would think. It may retain the relationship you have with your student by having somebody haggle over unpaid fees, but how efficient is somebody in another state, or in some cases another country like India, going to be in getting someone to pay their bills? Ask yourself this, can a billing company be there physically to take care of your billing and bring accounts up to date? Everyone knows that the overall practice of taking in payments is easier by doing it directly.
Furthermore, a Full-Service Billing company has its own interest at heart not yours. In a struggling economy, do you think your Billing Service has your interests as heart or their own?
Full-Service Billing companies will regularly tell you to raise your tuition and create an image of benefits, while giving you the bad rates, because the more money you take in the more they can take out of your pocket.

Finally, let’s look at the whole hypocrisy that exists with Full-Service Billing companies. You hire these companies to get you your money quickly and efficiently. But in some cases a delinquent student will eventually be transferred over to a collections company. In such a case, the Billing Company would charge you 30-35% to recover the funds. So, the breakdown is the Billing Company you hired to get you your money will charge you more money when they can’t get you your money.

Full-Service Billing does have its advantages, such as having someone else take care of your billing issues (something you could do just as easily), but the high service costs and ridiculous fees they charge you means one thing:
MORE HANDS IN YOUR POCKET!