Dunning – Credit Cards
Payments can fail for a number of reasons, but most commonly they fail because of insufficient funds or a card number has changed. Unfortunately, credit card company’s do not give specific reasons for a failure, the reasons are very generic and not very helpful.
When the first payment fails, the partner gets a polite email stating their payment to GetintheLoop has failed. Within this email, the partner can see what payment details we have on file and they can view the invoice (a PDF is attached to the email). They can click on a link to both pay the outstanding invoice and update their card details. However, sometimes it’s a matter of insufficient funds and the partner does one of two things:
They ignore the email and clear up some room on the credit card. The email indicates we will try again automatically. If this happens, the subscription resumes as per usual.
They reach out to GetintheLoop finance and tell us to try the payment again on their schedule; when they will have the funds ready. We can set the system to pause the automatic retries based on their wishes and within reason.
If the partner does not respond to the first email, Chargebee automatically retries their card on the following schedule:
1, 3, 5, 8, and 14 days after the first initial attempt (5 more automatic attempts in total).
In addition to the automatic retries, if the payment still doesn’t work, the partner will get reminder emails on the 3rd, 5th and 14th day. These emails get progressively more blunt and they all include links to update the card on file and to pay the invoice.
In virtually all cases, this automated dunning process clears up the payment issue and the subscription goes on. If the payment is still not cleared up after this 15 day automatic process, Chargebee stops the automated process and human intervention is required. As the last automated email goes out of Chargebee (14th day), we have set up a process where a task will be created in Pipedrive for the relevant Local Owner. If you see this task, you should know email communication is not working and you should touch base with your partner. The Local Owner is in the best position to discuss and figure out why the payment still hasn’t been made given the established relationship. We have found there are three key reasons why subscriptions get to this point:
The email address in Chargebee is not correct and/or the emails are going to a junk folder. Asking if the partner has been getting the automated emails is a first step. If they haven’t been getting them, provide GetintheLoop finance with the right / updated contact info.
Some partners will feel like they haven’t been getting what they expected from GetintheLoop in terms of servicing, actions, etc. These partners sometimes take steps to prevent payments or when their card details change they ignore the dunning emails instead of contacting the Local Owner. If this is the case, you should do your best to address the issue ( service, addressing concerns, etc) but also remind them they have an invoice due as well. In these cases, you might also consider whether the subscription is saveable.
Some partners sadly have struggling businesses or struggling personal finances. They may want to pay the invoice but haven’t been able to clear up room on their card. If this is the case, you should try to establish a future payment date, if you do, please reach out to GetintheLoop finance either through a Pipedrive task or an email to firstname.lastname@example.org.
Important: If a partner is ready to update their card details with you, please ask if they wouldn’t mind responding to an “Update your payment method” email directly from the GetintheLoop finance team (or any of the previous dunning emails). There are compliance issues and protocols that businesses must follow in regards to handling credit card information, a secure link is the best way to keep everyone on side. If you must, take the credit card information down on a piece of paper and then call GetintheLoop finance with the details (card number, expiry, CVV, billing address). Once GetintheLoop finance has the card number, securely destroy the card information you have written down. You should not be emailing, slacking, or entering credit card details in Pipedrive.
For reasons 2 and 3 above, you should be prepared to potentially end the relationship due to non-payment. This is particularly true if you’ve been spending a disproportionate amount of time with this particular partner. You may also find that if the reasons are either 2 or 3 above, that you may have a hard time even getting a hold of the partner. We should be allowing at least a total of 30 days (including the automated process described above) for a payment issue, however, after this point, it’s likely warranted to remove the partner from the app. Unpaid invoices may be written off by GetintheLoop finance periodically but it’s important to remember there’s no remittance to the Local Owner if this happens. Payment failures will happen from time to time and as long as we’ve followed a diligent process to attempt collection, we collectively have minimized loss to a sufficient threshold.
Special Note: In our experience, trying to take small amounts due to small claims or collections is not worth the effort, time and cost involved. As a result, we do not pursue these avenues. A good process and timely human intervention is the best way to minimize overall losses.