Joining a Gym? Here's Why You Should Open a New Bank Account

It's that time of year again, when we all take a long look at that holiday weight gain and think, "Ugh."

For many of us, that thought inevitably leads to the thought that joining a gym may not be a bad way to start the new year. If that's you, I have a tip for what you should do first: Open a new bank account.

Gyms are increasingly requiring ACH payments

Alright, so it's not the most intuitive bit of advice, but it will make sense when I tell you that many gyms are now requiring you to pay your monthly membership fees via ACH bank transfers.

That's right, your gym wants your bank account information.

There are two main reasons why your gym might want you to pay this way instead of with your trusty credit cards:

• It's cheaper for the merchant. ACH transfers cost pennies. In contrast, credit card companies typically charge merchants 1% to 3% of a transaction to process it.
• It's harder for you to stop payments. Credit cards issuers make it pretty easy to file chargebacks on naughty merchants, while banks usually charge fees to stop recurring payments on their end.

Like it or hate it, if you want to join one of these gyms, you're going to have to give them access to a checking account. That's why you should open a new account dedicated just to the gym.

Giving any merchant access to your primary bank account is already a bad idea simply from a security standpoint. Your account information is only as secure as the least secure company that has it. How good is your gym's cybersecurity?

Then, once you consider how much hassle it could be to deal with a gym that won't stop billing you no matter how many times you try to cancel, well -- get that new account.

The bonus could pay for your membership

Another big reason I advocate opening new bank accounts for, well, anything really: The welcome bonuses. Similar to the bonuses credit cards offer, many banks have new account bonuses for their checking and savings accounts.

In yesteryear, just opening the account was enough to score a sweet kitchen appliance. (Yes, kids, this really was a thing!) Nowadays, you generally have to do a bit more to get your bonus -- but it's usually a lot more valuable than a toaster. I've earned bank bonuses worth $300.

Requirements for new account bonuses are usually along the lines of setting up a direct deposit, or making a certain number of debit card transactions. Just choose an account with a bonus you can comfortably meet. Then, you can use the welcome bonus to cover your monthly gym fees.

How to stop payments to stubborn gyms

Once you give a company permission to start recurring transfers out of your account, it can do so until you specifically revoke that authorization. In a perfect world, you could go online, hit a "cancel" button, and that would be that.

This is not that perfect world.

Gyms, in particular, are notorious for making it hard to cancel, or for charging people even after they have cancelled their membership. Closing the account may work in some cases, but it's not a guarantee that the bank will stop accepting recurring charges.

Instead, you'll need to inform both the gym and the bank -- in writing -- that you are "revoking authorization." And yes, you should use that exact phrase somewhere in your letter.

You can also choose to use a "stop payment order" with the bank. Most banks will charge a fee for this service, but it works even if you haven't specifically revoked authorization yet. You may be able to do this online or through the bank app, but some banks may require it in writing, especially if you're trying to stop all future payments, too.

Dispute unauthorized transactions right away

If you've cancelled your membership and revoked authorization, but the gym still charges you anyway: Dispute it.

You can dispute any unauthorized transaction by law. For the best results, it needs to be done within 60 days of the transaction. The bank will then investigate to see if the transaction was really unauthorized. Show the bank proof that you cancelled your membership and revoked authorization, and you should get your money back.

Do you need to open a new bank account when you join the gym? Of course not. You can absolutely just hand over your primary bank account information. But considering a new account offers both better security for your money and the potential for a bonus, well, it seems like an easy call to me.