What is dunning? How businesses recover failed recurring payments
By SendPay Business · · 2 min read
Dunning is the process of chasing payments that have failed or are overdue, especially for subscriptions. Done well, it recovers money from customers who still want the service but whose card simply failed.
Why recurring payments fail
Common reasons include expired or replaced cards, not enough balance on the day, and fraud checks at the card issuer. Customers who leave because of a failed payment, not because they chose to, are often called involuntary churn.
How a dunning process works
- The payment fails and the system records the reason.
- It retries the payment after a few days, when funds may be available.
- The customer gets a friendly email or message with a link to update their card.
- If payment still fails, access is paused or the subscription ends after a final notice.
Keeping it customer-friendly
Clear, polite messages work better than threatening ones. Say what failed, how to fix it in one click, and when access will change, and avoid charging late fees on a first failure.
Where SendPay fits
SendPay platforms include subscriptions, invoicing and payment links under your own brand, powered by licensed partners. SendPay tells you in writing which licences apply to your platform before you pay.
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Build my platform →Questions people ask
What do failed subscription payments cost me?
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Failed subscription payment calculator →How do I chase an unpaid invoice?
Four polite reminder emails, filled in with your details.
Payment reminder templates →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.