What is Automated Dunning?

Automated dunning is the process of using automated systems and software to manage the collection of overdue payments. This method is particularly useful for subscription-based businesses and recurring billing models, where timely payment collection is crucial for maintaining a steady cash flow.

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Key Features of Automated Dunning

• ‍Payment Retry Logic: Automated systems can automatically retry failed payments at scheduled intervals. This increases the chances of successful payment without manual intervention.‍
• Customer Notifications: Automated dunning sends emails, SMS, or in-app notifications to customers about failed payments, upcoming retries, and the need to update payment information.‍
• Updating Payment Information: Systems can prompt customers to update expired or invalid payment details, often providing a convenient link directly to the account management page.‍
• Customisable Communication: Businesses can tailor the messaging, timing, and frequency of dunning communications to align with their brand voice and customer preferences.‍
• Escalation Process: Automated dunning can escalate the severity of messages if initial attempts fail. For example, the first notification might be a friendly reminder, while subsequent messages become more urgent.

Learn more about dunning management.