Why BAID cancellations are not auto-handled like "Payment Failures" in Chargebee

Problem Statement

This article explains why Billing Agreement ID (BAID) cancellations are not handled the same way as payment failures and what happens when a customer cancels their PayPal billing agreement.

Related Scenarios

• What is an IPN notification?
• When does the PayPal billing ID get removed?
• Customer canceled billing agreement ID

Solution

In Chargebee, the Billing Agreement does not expire unless the customer cancels it. Sending an Update Payment Method link automatically is not ideal because businesses handle these cases differently.

When a customer cancels the Billing Agreement in PayPal

1. PayPal sends an IPN (Instant Payment Notification) to Chargebee.
2. Chargebee removes the billing agreement (for GDPR compliance) and notifies Admins and Owners.
3. You can ask customers to update their payment method.
4. Chargebee sends automated "Update Payment Method" emails to customers when no payment method is found during Online Dunning.
5. Sending emails to multiple Chargebee users is not recommended due to different hierarchy levels.

Contact Chargebee Support for more information.