Failed Payments and Dunning

Failed Payments and Dunning

Some subscription payments will fail — cards expire, funds run short, banks decline. How you respond to those failures has a direct, measurable effect on your revenue.

Dunning is the process of recovering failed payments gracefully, and this article explains how to do it well.

Why Payments Fail

  • Expired or replaced cards.
  • Insufficient funds at the moment of charge.
  • Bank fraud checks blocking the transaction.
  • Temporary network or issuer outages.

A Sensible Dunning Flow

Rather than cancelling immediately, a good flow retries intelligently and keeps the customer informed so they can fix the problem before losing access.

  1. Retry the charge on a smart schedule over several days.
  2. Email the customer with a clear update-card link.
  3. Show an in-app banner prompting them to fix payment.
  4. Only suspend access after retries and reminders are exhausted.

Frequently Asked Questions

How many retries should I allow?

Usually three to four over a week or two. Providers can optimise retry timing based on when issuers are most likely to approve.

Should access stop the moment a payment fails?

No. A short grace period recovers a lot of revenue and avoids frustrating customers over a temporary glitch.

If you need a hand with any of this, your Progressive Robot delivery team is ready to help. Raise a ticket from the Support area of your client portal or speak to your account manager and we will guide you through the next steps.

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