ACH Failures

If you are an Authorize.Net user that allows your subscibers to pay by ACH, you may have run into a failed ACH payment. The guide below will instruct you on how to re-collect the funds and properly reconcile the subscription.

If the payment fails when it is attempted, the subscription will immediately transition to past_due. From here, the dunning process begins to attempt to collect the past due funds.

You should receive a notification of a failed ACH payment in your Authorize.Net account after it fails to post to your account. This will occur several days after the original payment was submitted successfully to the gateway by Chargify. Chargify does not receive notification from Authorize.net when an ACH payment fails.

Once a failed ACH payment has been located, you can follow the steps below to achieve the desired outcome.

Method 1

  1. When an ACH payment fails several days later, you can record an External Refund in Chargify. This will reduce the revenue in Chargify by the given amount.

  2. You can attempt a one-time charge with a different active payment method on file in the subscription. This is if there are multiple payment methods on file. Simply activate a card on file for the subscription, and proceed with the one-time charge.

  3. Method 1 will not trigger any dunning emails because a failed one-time payment does not move a subscription into a past_due state.

Method 2

  1. When an ACH payment fails several days later, you can record an External Refund in Chargify. This will reduce the revenue in Chargify by the given amount.

  2. As alternative to issuing a one-time charge, as denoted in Method 1, we suggest the following:

    • If needed adjust the subscription’s balance to make the Next Billing Amount match the amount you need to attempt to charge
    • Change the next billing date to the current time / current timestamp.
    • Adjusting the balance will not charge right away, but will increase their next amount owed on their next renewal date. By changing the date to the current time, you are attempting to process the transaction immediately.
  3. If the subscription’s payment fails, the subscription moves into the past_due state. This will trigger the dunning process which will send an email to the customer. This is assuming you have a day 1 email configured in your dunning settings.

  4. If the subscription payment succeeds, you’ll need to move the next billing date back to the appropriate day in which the subscription should renew.

API Version

If you have Authorize.Net configured to programmatically notify you of an ACH failure, you can follow the same sequence of events using the Chargify API.