How to retry failed subscription payments automatically to reduce churn

Involuntary churn—where customers lose access to your service due to failed payments rather than a decision to leave—is a significant revenue leak for subscription-based businesses. 4Geeks Payments provides powerful tools to combat this through automated retry logic, often referred to as "dunning management."

By configuring intelligent retry schedules, you can automatically attempt to process failed transactions at optimal intervals, recovering revenue without requiring manual intervention from your finance or customer service teams. This article explains how to set up and manage automated payment retries to maximize your transaction success rates.

Prerequisites

Before configuring automated retries, ensure you meet the following requirements:

• Active Account: You must have an active admin account on 4Geeks Console.
• 4Geeks Payments Enabled: The 4Geeks Payments module must be active and configured with a payment gateway. ²
• Permissions: You need "Admin" or "Finance Manager" permissions to modify payment settings.
• Active Subscriptions: This feature applies to recurring billing; ensure you have active subscription plans created.

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How to Configure Automated Payment Retries

Follow these steps to set up your dunning management and retry logic within the platform.

Step 1: Access Payment Settings

1. Log in to the 4Geeks Console.
2. Navigate to the Payments module in the main dashboard.
3. Click on Settings (usually represented by a gear icon) and select Retention & Dunning.

Step 2: Define Retry Schedule

Instead of retrying immediately (which often results in another failure), it is best practice to space out attempts to allow customers to fix issues (e.g., adding funds or updating a card).

1. Locate the Retry Schedule section.
2. Enable Smart Retries to allow the system to use AI to determine the best time to retry based on card type and error code.
3. Alternatively, select Custom Schedule to define specific intervals. A recommended schedule is:
   • Attempt 1: 1 day after failure.
   • Attempt 2: 3 days after failure.
   • Attempt 3: 7 days after failure.
4. Click Save Schedule.

Step 3: Configure Customer Notifications

Communication is key to recovering payments. You can set up automated emails to notify customers of the failure and provide a link to update their payment method.

1. Go to the Notifications tab within the Retention settings.
2. Enable Payment Failed Email.
3. Use the template editor to customize the message. Ensure you include a dynamic link (variable) for {{update_payment_method}}.
4. Set the timing to send the email immediately after the first failed attempt.

Step 4: Set Final Action

Define what happens if all retry attempts fail.

1. Scroll to the Final Action section.
2. Choose an action from the dropdown menu:
   • Cancel Subscription: Immediately ends access.
   • Mark as Unpaid: Keeps the subscription active but flags the invoice as unpaid (useful for B2B relationships).
3. Click Save Changes to activate the workflow.

Common Use Cases

Scenario 1: Recovering Revenue from "Soft Declines"

Situation: A loyal customer’s monthly subscription fails due to "Insufficient Funds" because their paycheck hasn't cleared yet.

Application: With 4Geeks Payments, you configure a retry schedule that attempts the charge again in 3 days.

Result: The second attempt succeeds automatically once the customer has funds. The customer experiences no service interruption, and your team spends zero time chasing the payment.

Scenario 2: Handling Expired Cards

Situation: A long-term client forgets to update their credit card details before it expires, resulting in a hard decline.

Application: The system triggers a "Payment Failed" notification immediately after the first failure. The email contains a secure link to the 4Geeks Console or a customer portal where they can update their card.

Result: The client updates their card details within 24 hours. The system detects the update and immediately retries the pending invoice, successfully capturing the payment.

Troubleshooting

Issue 1: Retries are not occurring according to the schedule

• Cause: Some payment gateways impose their own retry rules that may override platform settings.
• Solution: Check your payment gateway integration settings in 4Geeks Payments. Ensure that "Platform Management" is selected over "Gateway Default."

Issue 2: Customers are not receiving failure notifications

• Cause: Emails may be landing in spam folders, or the SMTP server settings may be incorrect.
• Solution: Verify your email domain verification records (SPF/DKIM) in the general settings. Additionally, ask customers to whitelist your support email address.

Issue 3: Subscription remains "Active" despite max retries

• Cause: The "Final Action" setting may be set to "Do Nothing" or "Mark as Unpaid" rather than "Cancel Subscription."
• Solution: Review Step 4 above and ensure the final action is set to Cancel Subscription if you wish to revoke access automatically after failed attempts.

FAQs