Recurly

Dunning Management

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.

Retry Schedule

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.

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)
Never

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

Maximum Retries

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.

Configuration

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.

Customer Communication

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:

  1. First, Recurly will send a “Payment Declined” email letting the customer know their payment failed, and prompting them to update their billing information.

  2. Recurly will then retry the payments and send the appropriate notification emails (depending on the outcome) based on your dunning management settings.

  3. 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.

Push Notifications

Push notifications 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

Stop Dunning

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).