Understanding Dunning in Subscriptions
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Understanding Dunning in Subscriptions
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Dunning is the process of managing failed subscription payments by communicating with customers to resolve payment issues.
Our customizable dunning feature allows you to tailor the dunning process and notifications, ensuring a seamless subscription experience for your business and customers.
In this article, you’ll learn how to customize your dunning process and notifications for subscription orders.
How it works
A subscription is considered in dunning when the payment method has failed. By default, we’ll try to run the payment method 8 times before marking the subscription as failed. Payment attempts occur once per day.
Please note:
For prepaid orders, a charge of $0.00 runs on every delivery date that is not also a billing date. If the payment method fails for these charges, we'll still notify the customer to update their card info. They'll still receive the rest of their prepaid orders in the meantime.
To know how many contracts are currently in dunning, head to the Subscriptions tab and click Show only subscriptions in dunning. You can also find a specific dunning contract by searching for the customer in your Customers tab.
Customizing the dunning process
To customize your dunning process:
- In your Yotpo Subscriptions main menu, go to Settings > General > Dunning.
- In the dropdown, select how many times to attempt payment before canceling the subscription. You can select between 1 and 15 times.
If the payment method can’t be confirmed after all set attempts, the subscription will be canceled.
Please note:
If a customer cancels a subscription while it's in dunning, no further attempts will be made.
Dunning notifications
Sending a payment notification alerts customers that it’s time to update their payment method.
To customize your dunning notifications:
- In your Yotpo Subscriptions main menu, go to Settings > Notifications.
- Under the Customer section, enable the Payment problem toggle.
- Select whether to notify customers via Email or Email & SMS.
The payment problem notification will be sent after the 3rd failed payment attempt.
Customers will also be notified of payment issues in their customer portal. To send an email when the subscription is canceled after going through dunning, also enable Subscription cancellation in notifications. Emails and SMS messages can be customized with Yotpo SMS & Email.
Clicking past billing failures will show a list of previous attempts. You can also choose to send a reminder email by clicking Send update payment email in the banner or in the payment method section of the order.
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