Dunning Software

Dunning & Retry Logic refers to the automated process used to handle failed or overdue payments. Dunning involves communicating with customers about payment issues (such as failed subscription charges), while retry logic automatically attempts to charge the payment method again based on a scheduled sequence or rules. Together, they help recover lost revenue, reduce churn, and improve successful payment collection rates.

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What Is Dunning and Retry Logic?

Dunning is the process of automatically recovering failed payments through a combination of retry attempts and customer communication.

Retry logic is the schedule and rules that determine:

• When to attempt the payment again
• How many times to retry
• What actions to take between attempts

Together, dunning and retry logic turn failed payments from:

Lost revenue

into:

Recoverable revenue

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Why Dunning Is Critical

Most businesses lose money because they:

• Don’t retry failed payments
• Don’t follow up quickly
• Rely only on email reminders
• Give up after one failed attempt

In reality:

A large percentage of failed payments can be recovered with proper retry and follow-up.

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How Dunning Works in Deposyt

When a payment fails, Deposyt automatically:

1. Flags the payment as failed
2. Notifies the customer (SMS/email)
3. Initiates retry attempts based on your settings
4. Triggers automations (if configured)
5. Continues until payment is recovered or retries end

Example Retry Flow

A typical dunning sequence may look like:

• Day 1 → Payment fails → Retry + SMS notification
• Day 3 → Retry again + reminder
• Day 7 → Retry + urgency message
• Day 14 → Final retry attempt

This structured approach significantly improves recovery rates.

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Deposyt Advantage

Deposyt enhances dunning by connecting it to:

• CRM automations
• SMS and email messaging
• Customer behavior tracking
• Subscription lifecycle events

This means recovery is not just automated—it is intelligent and responsive.

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How to Configure Dunning and Retry Logic

1. Navigate to your subscription or billing settings
2. Enable retry logic
3. Define:
   • Number of retry attempts
   • Time between retries
4. Set up messaging:
   • SMS reminders
   • Email notifications
5. Save configuration

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High-Impact Strategies to Recover More Payments

1. Retry Multiple Times

One attempt is not enough.

Best practice:

• 3–5 retry attempts within 14–30 days

2. Use SMS for Follow-Ups

Email alone is not effective.

SMS ensures:

• Higher open rates
• Faster responses
• Better recovery

3. Space Out Retries Strategically

Avoid retrying too frequently.

Instead:

• Allow time between attempts
• Increase urgency over time

4. Add Clear Messaging

Examples:

• First message:

“Your payment didn’t go through—quick fix here.”

• Final message:

“Final attempt to process your payment—please update now to avoid interruption.”

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Pro Strategy: Combine Automation + Messaging

Use dunning with:

• Instant SMS alerts
• Follow-up reminders
• Escalation messaging

This creates a system where:

Payments are continuously pushed toward completion.

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Advanced Strategy

After multiple failures:

• Offer alternate payment methods (ACH)
• Provide a direct payment link
• Offer a temporary discount or a partial payment option

This can recover revenue that would otherwise be lost.

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How Dunning Reduces Churn

Failed payments often lead to cancellations.

Dunning prevents this by:

• Recovering payments quickly
• Keeping subscriptions active
• Maintaining customer continuity

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Common Mistakes to Avoid

• Only retrying once
• Not notifying customers immediately
• Relying only on email
• Not escalating urgency
• Ending retries too early

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Summary

Dunning and retry logic are essential for:

• Recovering failed payments
• Reducing churn
• Increasing revenue without new customers
• Automating payment recovery

When used correctly, this system can significantly improve your business performance.

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Next Steps

To complete your subscription recovery system, continue with:

• Canceling or Pausing Subscriptions
• Invoice and Subscription Reporting
• Failed Subscription Payments

These features work together to protect and grow your recurring revenue inside Deposyt.