When a subscription gets to the end of its term and is set to renew, our system will automatically re-bill the customer, charge their card, create a new order, and extend the subscription for another term.
There are times, however, that this automatic renewal process might fail. According to Stripe, failed renewals are a fairly common occurrence, with a typical failure rate of about 10-13% at each renewal. This can happen for several reasons:
- Expired credit card
- Cancelled credit card
- Insufficient funds
- Anti-fraud protection
- Bank decline
If the charge was not succesful, the subscription is put into Past Due status to indicate there was an issue.
Go to Subscriptions
From the merchant portal, choose Subscriptions from the navigation menu.
View Past Due Subscriptions
Find the category for Past Due subscriptions and click on it. Information regarding the subscription that failed to renew will display.
Resolving Failed Renewals
You will typically receive a generic bank decline notification (on Stripe this shows up as "Card Decline"). The customer will need to contact their bank directly in order to determine the specific cause of the decline.
Once a subscription is Past Due, our system will automatically attempt to re-bill the customer each day until your cut-off date, up to a maximum of 10 days.
Depending on the cause of the decline, the customer may need to take action to resolve the issue (i.e. if the card has expired, they will need to update the expiration date or provide another card); or simply running the charge a second time may be enough (i.e. if there were insufficient funds at the time of the first billing attempt).
If the transaction has not gone through successfully by the cut-off date, the subscription will be marked expired, and no additional attempts to charge the customer will be made.
When this happens, it is our recommendation that you reach out to the customer via email. Contacting the customer to see if you can help - or even if they'd like to cancel - is great customer service and tends to net you goodwill and better retention.