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