Chargify helps manage the dunning process, or what we like to call the “unhappy path.” This is what occurs when a credit card, ACH or Direct Debit transaction fails. Chargify helps you manage this process by giving you a set of tools to automate the process of addressing failed cards.
Dunning is the process of how you communicate with your customers in regards to failed credit card transactions and expiring credit cards.
We recommend viewing the the video below as a brief introduction in how the dunning process works in Chargify.
How dunning really works
When your a subscriber enters the state of past due, the Chargify dunning process takes over. We’ll inform your subscriber via email that their current payment has failed, based on your dunning settings. From there, we’ll also retry the card on file until we reach the end of your dunning schedule. At the end of the schedule, we’ll automatically cancel the subscription, or mark it as unpaid.
We absolutely suggest that you provide the following information to your subcriber via dunning emails in order to recover their past due account:
- Tell your subscriber why their payment failed
- Inform them how much the failed payment was for
- Explain to them how to update their credit card
- Give detailed information about consequences of non-payment
Easily customize your dunning communications by using any of the following:
- Create unique emails that address the dunning schedule, such as number of retries left before cancellation.
- Set up automatic retry schedule for failed transactions with or without an email. (Yes, you can retry a card without sending an email!)
- Set up proactive communication with your customers when their cards are about to expire by enabling “Expiring Card” email reminders
We have found that up to 50% of lost customers are due to failed or expired credit cards simply because the process is so difficult to manage for merchants. Chargify’s tools help you save time, be efficient, and retain more customers. Dunning works!