The Dunning feature helps automatically retry payments for an invoice if the payment fails. This feature helps avoid subscription churn.
Click here for more details on configuring dunning for your account.
The payment for an invoice might fail due to various reasons, such as:
Insufficient funds
Expired card
Temporary connection issue
If the payment fails during a renewal, the subscription would need to be canceled due to non-payment. To retain the subscription or avoid cancellation, you can enable dunning.
When does dunning occur?
If you have configured Dunning on your account, Chargebee automatically triggers dunning when the payment fails on an invoice.
The number of retries depends on your configurations and you can also choose the subsequent action you’d like to perform on the subscription and invoice if the retries are exhausted.
Offline Dunning
You can also configure Dunning if you’re using Offline Payments in Chargebee. In this case, since the payments are not processed via Chargebee, the Dunning configuration is used to send email reminders to customers.
The Offline Dunning retries are configured based on the number of days after which the invoice is generated(or becomes “due”). You can also choose a final action which will be applicable on subscriptions and invoices if customers don't pay up by the end of this period.
Related articles and documentation:
How to enable dunning for subscriptions