Dunning, explained: how services chase a missed payment

"Dunning" is the old word for chasing a debt. In subscription software it describes everything a service does after a renewal payment fails. The details differ between services, but the pattern is remarkably similar.

Why payments fail

A renewal can fail for many reasons, most of them ordinary:

• the card does not hold enough for the full amount, including tax;
• the card has expired or been replaced;
• the card is frozen;
• the payment was declined for a security reason;
• the amount was in a currency that needed conversion, and the converted figure was slightly higher than the balance.

A typical sequence

Every service sets its own schedule, but something like this is common:

During this period most services keep the account working normally. The grace period is there so that ordinary problems can be fixed without disruption. Our guide to grace periods and payment retries looks at the rules in more detail.

How to get back on track

1. Check the email is genuine. Open the service directly rather than following links; fake payment-failed emails are common.
2. Find out which card was charged. It is shown on the billing page.
3. Fix the cause. Add money to the card, update an expired card or choose another one.
4. Retry manually. Most billing pages have a "retry payment" or "pay now" button. Using it settles things immediately instead of waiting for the next automatic attempt.
5. Confirm. Look for a receipt and check that the billing page shows the subscription as active.

What retries mean for a card

Each retry is a fresh attempt. If you add money between retries, the next one will usually succeed. If several services retry the same card at once, the order they arrive in decides which succeed, so fund the card for all of them.

After the final retry

If all retries fail, the service decides what happens: a free plan, a paused account or cancellation. Your data is usually kept for a while, and paying the outstanding amount restores the plan. Check the help centre for "past due" or "unpaid" to learn the specific rules.

Preventing it next time

• Put renewals in a calendar with a reminder before each one: see building a renewal calendar.
• Keep a buffer on the paying card for price changes and tax.
• Watch out for days where several renewals land together, as in when two renewals collide.

Frequently asked questions

Will a failed payment affect anything outside the service?

Normally the consequences stay with the service itself: retries, reminders and eventually a limited account. Settling the outstanding invoice restores things in most cases.

Should I contact support during dunning?

Only if something is unusual, for example the service keeps retrying a card you removed, or you want more time. For an ordinary shortfall, fixing the card and retrying is quicker.

Summary

After a failed payment, services retry a few times over one to two weeks while sending reminders, then limit the account. Fix the cause, retry from the billing page yourself, confirm with a receipt, and keep a buffer to avoid a repeat.