When a customer's payment fails, Recurly kicks off a process called dunning management (Delinquent User Notification). This process involves user communication, payment reconciliation, and payment retries.
While an invoice is past due and in the dunning process, Recurly automatically attempts to collect the invoice using the optimal retry strategy for the payment type and error. This process is not customizable. However, you can control the communications that your customers recieve. For more information on that, please see the Customer Communication section.
Customer Payment Issues
- Insufficient Funds
- Every 7 days
- Exceeds Daily Limit
- Every 3 days
- Call Issuer
- Every 3 days
- Temporary Hold
- Every 6 days
- Generic Declines
- Retry every 3-5 days, based on dunning length
- PayPal Decline
- Every 6 days
- Hard Decline (Will Never Succeed)
Gateway Payment Issues
- Try Again/Gateway Error
- Every 2 days
- Issuer or Gateway Unavailable
- Every 3 days
- Communication/Configuration Error
- First retry up to 2 times, 4 hours apart
- Next retry up to 6 times, 1 day apart
- Finallly retry through end of dunning cycle, 3 days apart
An invoice will be marked as failed after 8 failed connections that have reached the payment gateway, 20 total transaction attempts, or 28 total days since the invoice creation date.
Dunning preferences can be accessed in your account’s Configuration panel. On this page, admins can change the failed payment notification intervals, number of notification attempts and the desired end-result when payment is unsuccessfully collected.
In the process of dunning an account, Recurly can send several emails to your customer notifying them of failed payment and any subsequent subscription changes due to non payment:
First, Recurly will send a “Payment Declined” email letting the customer know their payment failed, and prompting them to update their billing information.
Recurly will then retry the payments and send the appropriate notification emails (depending on the outcome) based on your dunning management settings.
If the customer does not respond to these emails by updating their billing information, Recurly sends a “Subscription Canceled Nonpayment” email letting them the customer know their subscription has been terminated for non-payment. This ends their subscription immediately.
Customizing Customer Communication
You must have Configuration permissions to perform this task.
Navigate to your Dunning Management page.
Adjust the number of emails you’d like your customers to recieve by pressing the + and - buttons.
Adjust the number of days in between emails. The total number of days should be fewer than your shortest billing cycle length.
Choose an outcome if the payment fails at the end of the dunning cycle. You may either expire the subscription, or leave it active.
Webhooks can be used to keep your service synchronized with payment issues inside of Recurly.
- Failed Payment
- Sent after each failed payment. Recurly merchants use this push notification to flag a user as past-due inside their application and encourage them to update payment information.
- Successful Payment
- Sent after a successful payment. Recurly merchants use this push notification to recognize when a previously past-due user is now back in good standing.
- Subscription Expired
- Sent if Recurly terminates a subscription due to non-payment or if the subscription is canceled and no longer valid. When this notification is received, the subscription should be immediately terminated in your system. This is the primary notification you should catch if you are receiving push notifications.
Updating Billing Info
When your customers receive a failed payment email, they need to know how to update their billing information. The default payment declined email template offers your customers a direct link to their hosted account management page, where the customer can provide updated billing information.
You can include a direct link to a customer’s account management page from your website using the
hosted_login_token parameter available on the Accounts API. API users can also update the email template to point to a billing update form on their own website.
Manual Retry/Force Collection
A forced collection attempt can occur at any time by clicking the Collect Now button on an open invoice
The dunning process can be halted on an account by opening the past due invoice, clicking on the Stop Collection tab, and selecting either the Stop Collecting option, which will mark the invoice as failed, or the Mark Paid option, which will indicate that the invoice was successfully paid for (this option is typically used when funds are received outside of Recurly).
Either option will move the invoice to a Closed state and will stop all future collection attempts on the invoice.
Please Note: Stopping collection on an invoice will not automatically cancel the related subscription. The subscription needs to be canceled separately in order to stop the subscription from renewing again.
A subscription will only be canceled automatically if an invoice fails dunning (assuming your dunning settings are configured to expire a subscription at the end of the dunning process).
Reopening Invoices and Dunning
Users with Customer Service permissions have the option to reopen failed manual invoices. If a failed manual invoice is reopened, dunning will not restart (no dunning emails will be sent) and the associated subscription will not be effected. When a manual invoice is reopened, it will remain in an Open state indefinitely until it’s closed and marked paid/failed.