Asked

How do you deal with failed payments in Stripe or in general?

I use Stripe to collect payments for my SaaS. Each month there are several payments that fail. Usually I get the code: "do_not_honor" so the bank of the user rejected the payment.

I am disturbed by the frequency. Anyone else experience this so much?

Also, how do you deal with this. Do you send an automatic email to the customer letting them know? And then keep following up? What if someone has "insufficient funds"? :/

Automatic emails when the payment date is coming up as a reminder. Then we try to draw the money when the payment is due for 2 days. After that we send an automatic email that the payment has failed and to contact us within 48 hours to resolve the issue or the account will become locked.

Zapier is your friend! You should be able to hook up automatic emails after a failed payment through that.

This activity of following up on failed payments is called dunning. In my last business, I used stunning.co and would recommend them again (although these days there are a number of services like this out there). So if you don't want to fiddle around with Zapier and webhooks and email sequences, using a dunning service will send a series of automated emails with an easy link to update the payment info and retry the charge. A lot of times people don't mean to let the service lapse or cancel, their card simply expired or was reissued. This has been happening a lot lately as most US banks are swapping out the old mag stripe cards to the new ones containing the chip.

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