Dunning is the automated process of attempting to collect payments from customers after a transaction fails (e.g., due to an expired card or insufficient funds). This involves retrying the card payment on a schedule and sending email notifications to the customer to update their payment method.
FAQs:
- What is Smart Retries?
A Stripe feature that uses machine learning to guess the best time to retry a failed card (e.g., after payday) to increase success rates. - Does dunning reduce churn?
Yes, effective dunning recovers revenue that would otherwise be lost to “involuntary churn” (accidental failed payments). - Can I customize dunning emails?
Yes, you can brand the emails and set the frequency of reminders in the Stripe Dashboard.
Related Terms:
- Churn
- Failed Payment
- Recovery Rate
- Accounts Receivable