Backup payment method

Enable Recurly's Backup Payment Method to automatically switch to a subscriber's alternate payment method when their primary payment fails — reducing involuntary churn and improving renewal success rates.

Additional cost There are additional fees to use the Wallet feature required by Backup Payment Method. Contact your Account Manager, Account Executive, or Recurly Support to learn more.

Backup Payment Method lets subscribers designate an alternate payment method to be used automatically when their primary payment fails. When a renewal declines, Recurly switches to the backup — reducing involuntary churn without any manual intervention.

Not included in Starter or Pro — contact Recurly Sales to upgrade

1Definition 2Key benefits 3Key details 4Setup 5Testing 6Considerations

Prerequisites

The Wallet feature must be enabled on your account.
Be aware of the additional fees associated with Wallet.
Subscriber consent is required before setting a payment method as a backup.

Definition

Backup Payment Method is a Recurly feature that allows subscribers to designate an alternative payment method to be used automatically when their primary payment method fails during a transaction. It requires the Wallet feature, which lets subscribers store multiple payment methods. When a primary payment declines, Recurly switches to the backup automatically — reducing payment failures and involuntary churn.

Key benefits

Reduced churn Lower the risk of involuntary churn by ensuring a backup payment option is available when the primary method fails.

Uninterrupted service Subscribers keep access to their services without needing to intervene when a payment fails.

Increased revenue recovery Improve successful transaction rates for recurring payments by adding a second attempt path.

Automated payment handling The switch to the backup method happens automatically, with no manual intervention required.

Flexibility Supports a wide range of payment methods across different regions.

Key details

Wallet integration

Subscribers can store multiple payment methods using the Wallet feature. Backup Payment Method extends this by letting one stored method be designated as the backup. When the primary method is declined, Recurly automatically switches to the backup.

Backup payment method usage

The backup method is used for failed subscription renewals — specifically for invoices entering dunning. It is not applied for purchase requests or subscription changes unless the backup is explicitly specified in the purchase request.

Payment method response times

For payment methods with immediate responses (most credit cards, debit cards, digital wallets), Recurly switches to the backup instantly on decline. For delayed-response methods (direct debit), Recurly waits for the initial decline confirmation before initiating the backup attempt.

Retry mechanism

If both the primary and backup transactions decline, Recurly retries them during the dunning process — alternating between primary and backup, waiting for a decline before each next attempt. If a hard decline occurs on either method, that method will not be retried for that invoice.

Analytics

Recurly's Recovered Revenue and Dunning Effectiveness reports include recoveries from backup payment methods. For detailed insights, use the billing_info v5 and transactions v5 exports.

Open Reports

In the Recurly Admin Console, navigate to Reports.

View recovery reports

Open the Recovered Revenue and Dunning Effectiveness reports to see recoveries attributed to backup payment methods.

Download export data

For more detail, download the billing_info v5 and transactions v5 exports.

Setup

Set a backup via Admin Console

Open the subscriber account

In the Recurly Admin Console, navigate to Subscribers and select the desired account.

Select the backup method

Under Billing Information, find the list of stored payment methods. Choose the desired method and click Set as Backup.

Set a backup via API

Choose your API version

Use either API V3 or API V2.

Make the request

POST to the /billing_infos endpoint with the subscriber's account ID, payment method details, and the parameter indicating it should be set as the backup. You can also set the backup via the /subscriptions and /purchases endpoints.

Integration requirements

Update your integration to support Wallet and ensure you obtain subscriber consent before setting a backup payment method. Provide subscribers with a UI to manage their stored payment methods and designate a backup.

Testing

Test Backup Payment Method in development mode against your gateway to simulate both declined and successful scenarios. You can also test using Recurly's sandbox with test card numbers.

Set your site to development mode

Confirm your Recurly site is in Development mode.

Create a subscription with a decline card

Use a test card number that simulates a declined transaction as the primary payment method.

Set a success card as backup

Use a test card number that simulates a successful transaction as the backup payment method.

Initiate a transaction

The primary method should decline and Recurly should automatically attempt the backup.

Considerations

Subscriber consent

Always obtain subscriber consent before setting a backup payment method. Compliance requirements are each merchant's responsibility to define and adhere to.

Update terms and conditions

Add a clause about using a backup payment method to your terms and conditions.

Display a consent checkbox

When subscribers add or update a payment method, show a checkbox with language such as: "I authorize [Your Company] to use this as a backup payment method in case of transaction failures."

Default to unchecked

The consent checkbox must be unchecked by default — subscribers must actively opt in.

Store consent securely

Record and store the subscriber's consent choice securely for future reference.

Handling communication errors

Warning Communication errors with a gateway will prevent backup attempts from being initiated.

If a communication error occurs during a transaction, monitor the transaction status in the Admin Console or via API responses. If the status remains pending or unclear, do not manually initiate a backup attempt — wait for confirmation from Recurly or the gateway before taking further action.

Additional considerations

If the primary payment method is also set as the backup, only the primary method will be used for retries.
Custom Gateway Routing rules apply to backup payment methods.
Using two ACH payment methods as primary and backup is not recommended.
Only one backup payment method can be set per account.
Backup payment method is not used for purchase requests or subscription changes unless explicitly specified.