This article explains how the system automatically manages failed payments for recurring plans.
The system will retry a failed payment for a recurring plan a total of five times before canceling the plan. Once the plan is canceled, a balance in the amount of the last payment is then added as an amount owed under the client's account balance.
Failed Payment Retry Schedule
The days that are determined are dependent on the billing cycle length. The days within a billing cycle are divided by quarters to determine the next three retries. The last retry is done on the day of the next billing cycle. If this last one fails, then the plan is canceled and the amount of the failed payment is transferred to an account balance.
Example: One Week Billing Cycle - 7 Days
1st attempt when payment initially fails: Attempts on scheduled payment date
2nd attempt 2nd day of billing cycle
3rd attempt: 4th day of billing cycle
4th attempt: 6th day of billing cycle
5th attempt: 7th day of billing cycle - If this fails, then the plan is canceled
Example: One Month Cycle Interval - 30 Days
1st attempt when payment initially fails: Attempts on scheduled payment date
2nd attempt: 7th day of billing cycle
3rd attempt: 14th day of billing cycle
4th attempt: 21st day of billing cycle
5th attempt: 30th day of the billing cycle
Example: Twelve Month Billing Cycle
This is a special scenario. If the billing cycle is larger than one month, then the payment retries once.
Client Booking Privileges When Plan Is In a Failed State
Client booking privileges are temporarily removed when a client's plan fails. A client's membership status remains until the plan is canceled. In other words, the client will receive the membership discount if their plan is in a failed state. Any bookings made prior to the failed payment remain unless canceled.
Retrying a Failed Payment
To retry a failed payment, click the three dots to the right of the plan in the client Overview page, then click Retry Payment.
In the Retry Payment window, you have the option to select a new card and Save. You also have an option to apply the new payment method to the future payments.
Additional Failed payment reasons can be surfaced in the client's Plan Details page as well as Transactions tab.
Failed Payment Reasons
To view the failed payment reason from the client's Transactions tab:
From the client profile select Transactions
Select the three dots to the far right of a transaction
Choose View Detail
To view the failed payment reason from the client's plan:
From the client profile select the Overview tab
Select the three dots on the top right of the plan tile
Choose View Details
The failed payment reason will be on the left-hand side
Failed Payment FAQs
Can I pause a plan with a failed payment?
Can I pause a plan with a failed payment?
Pausing isn't an option in this case. However, you can cancel the current plan and set up a new one that starts at a later date. Keep in mind the client's bookings will be canceled upon canceling the plan.
Is it possible to change the payment dates for a plan with a failed payment?
Is it possible to change the payment dates for a plan with a failed payment?
While you can't adjust the dates on the existing plan, you can cancel it and sell a new plan. Keep in mind the client's bookings will be canceled upon canceling the plan.
Can a failed payment be removed from a plan?
Can a failed payment be removed from a plan?
Removing failed payments from plans is not possible within the software. You can cancel the plan and sell a new plan that starts on a later date. Keep in mind the client's bookings will be canceled upon canceling the plan.
Is there a report that lists the negative balance charges from plans that were canceled after too many failed retry attempts?
Is there a report that lists the negative balance charges from plans that were canceled after too many failed retry attempts?
Currently there is not a report that displays clients with negative account balances charged due to plan cancellations after too many failed retry attempts
Is there a report that lists the current number of plan failed payment retry attempts before the plan is canceled?
Is there a report that lists the current number of plan failed payment retry attempts before the plan is canceled?
Currently there is not a report that lists the current number of retry attempts for a recurring plan.