How to use Dunning Management

Articles on: SubBox

We release a new feature that is extremely helpful for customers' checkout and avoids delivery and payment delays.

The mechanism of action of this feature is as follows:
When it comes to the billing time of an order that fails to pay, it will be retry later.

Dunning management helps:

-There is another chance to charge the subscription which has been unsuccessfully paid

-Subscription that is always active if the user adjusts in the settings to skip payment

-Subscribers can still receive orders

Merchant can set up an automatic retry process to re-charge that subscription to avoid losing scheduled orders

This feature avoids the following situations:

• Credit card/wallet expired/limited/insufficient balance, so a customer cannot make payment.
  
• Merchant lost revenue because of an unnecessary incident
  
• Merchant can set up an automatic retry process to re-charge that subscription to avoid losing scheduled orders
  

In order to set it up, please follow these steps below:

Please go to Subscription > Dunning Management tab, you can see the Billing Attempts Settings

• Retry failed payment, this part allows merchants can set a maximum number of retry for one subscription
  
  
  When the user sets as many times, there will be as many retry times and emails are sent to notify subscribers
  
  For example: User set retry failed payments is 3 times => there will be 3 maximum tests, the 3rd time is called last retry
  
  When the user sets as no retry, keeping the old flow for subscription charge failed is to return the subscription to status failed
  
  The delay before retrying and action once the subscription… will be disabled (cannot be adjusted and cannot be performed)
  
  Please note: default setting for this part that is 3 times.
  
• Delay Before Retrying: Retry start date and Retry interval (1-7 days)
  
  
  Retry start date is the day after the order billing date failed
  
  User set Delay Before Retrying to 1 day => The first retry is the day after order billing date 1 day
  
  For example: Order billing date: 1/1/2023 => charge failed => 1st retry: 2/1/2023
  
  Distance between retry is the distance between the first retry with the 2nd, the 2nd with the 3rd
  
  User set up 2 days => after 2 days from the 1st retry => 2nd retry => 2 days after the 3rd retry
  
  For example: order billing date 1/1/2023 => retry 1st: 3/1/2023 => retry 2nd : 5/1/2023 → retry 3rd: 7/1/2023
  
  Retry start time: Same as billing time
  
• Choose action once the subscription reaches the maximum number of failures: Action when the maximum number of retry is reached (when the last retry ends). Action takes place an hour after last retry
  
  
  For example: Last retry 10am on January 2nd 2023. The system will skip payment at 11 am on January 2nd 2023
  
  There are 3 actions:
  
• Skip payment: Skip that payment, continue to charge according to the schedule as usual
• Pause subscription: The same rule as pressing the pause subscription button
• Cancel subscription: The rule is the same as when pressing the cancel subscription button
  
  Note: Default here is skip payment
  
  For example:
  
  Frequency delivery once every 7 days, billing time is 10 a.m On order billing date 1/1/2023, the payment charges failed
  
  The user set up in dunning management is:
  
  Set day before retrying: 2 days. Retry every 2 days
  
  Retry failed payment: 3 times. There are 3 retries
  
  The retry times are timed as follows:
  
  Retry 1st: 10am. on 3/1/2023
  
  Retry 2nd: 10am. on 5/1/2023
  
  Retry 3 rd - last retry: 10am. on 7/1/2023
  
  Action: Skip payment
  
  Skip the payment for that scheduled order, continue to charge the scheduled orders as usual
  
  Example: Order schedule of that subscription is 1/1, 8/1, 15/1
  
  => Orders on January 8 will continue to charge according to the usual schedule
  
  Action: Pause subscription
  
  Pause subscription like when user rule clicks “pause subscription” button in subscription detail
  
  Action: Cancel subscription
  
  Cancel subscription like when user rule clicks “Cancel subscription” button in subscription detail
  
  If you have any further questions about this, don't hesitate to contact us via in-app live chat or email at support@onecommerce.io.

Updated on: 31/12/2023

Updated on: 16/04/2024