What it does
It automatically manages failed subscription payments through smart retries, customer notifications, and card-update requests. The goal is to recover revenue without manual intervention while being respectful to customers.
Why I recommend it
Failed payments cause silent churn. Most customers want to stay – they just have expired cards or insufficient funds. Automated dunning recovers revenue that would otherwise be lost without you noticing until it’s too late.
Expected benefits
- Recovered revenue from failed payments
- Lower involuntary churn rates
- Less time manually processing failures
- Better customer retention through proactive communication
How it works
Payment fails → automatic retry schedule (day 1, 3, 7) → send card-update emails after each attempt → if all retries fail, pause service and send final notice → optionally offer payment plan or downgrade → track recovery success rates.
Quick start
Use your payment processor’s built-in retry logic first. Add custom email notifications explaining the issue and providing an update link. Track recovery rates manually before adding more complexity.
Level-up version
Smart retry timing based on likelihood of success (payday patterns). Offer one-click card update links. Send SMS for high-value customers. Provide temporary grace periods for long-term customers. Track which recovery tactics work best.
Tools you can use
Payments: Stripe, PayPal, Chargebee
Email/SMS: Transactional email services, Twilio
CRM: GoHighLevel, HubSpot
Automation: Zapier, Make, payment platform webhooks
Technical implementation solution
- No-code: Payment platform configures retry schedule → webhooks trigger email notifications → customer updates card via hosted page → service restored automatically.
- API-based: Payment failure webhook → retry logic with smart scheduling → email/SMS API sends notifications with update link → payment method update webhook → subscription API restores access.
Where it gets tricky
- Balancing persistence with annoyance
- Handling edge cases like insufficient funds vs expired cards
- Determining when to pause service without losing the customer permanently
