What happens if a subscription payment fails?
  • 03 May 2023
  • 1 Minute to read
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What happens if a subscription payment fails?

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Article Summary

The dunning and failed payment notification processes are determined entirely by your shop’s settings. You can edit these settings directly from the Subscription Herder app.

Billing Failure Notification

By default upon initial payment failure we send an email to your customer notifying them of their failed payment with instructions how to begin the payment method change process from their customer portal.

Like all notifications we send on your behalf, this notification is customizable. You may also select to be BCC’d or disable this notification entirely.

This notification and its settings can be edit by opening Subscription Herder from the Apps section of your Shopify store. Then, click the tab for "Customer Notifications" shown in red below.


Dunning Settings

With Dunning Settings you can manage failed billing attempts. Control how many attempts are made, the time between attempts and what to do with contracts after maximum billing attempts have been reached.

The default settings are 3 billing attempts with 6 hours between attempts.

You also have options for what to do with contracts after the maximum billing attempts have been reached so you can pick whichever fits your business the best.

Keep Active: Contracts will remain active. Billing will be retried immediately only if the payment method is updated. Their billing schedule will not be changed. For example, For a contract billed every month on the 15th. January 15th all 3 (or maximum) billing attempts fail. January 18th the customer updates their payment method, is billed immediately and order is created. Their next billing date will be February 15th.

Cancel Subscription: Contracts will be automatically canceled. To receive subscription items again, a new subscription will need to be purchased.

Skip to Next: Contract will remain active. Billing will be retried on the next billing cycle. For example, for a contract billed every month on the 15th. January 15th all 3 (or maximum) billing attempts fail. January 18th the customer updates their payment method. They will not be billed at this time and no order will be created. Their next billing date will be February 15th.

These settings can be edit by opening Subscription Herder from the Apps section of your Shopify store. Then, click the tab for "Settings" shown in red below.



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