How does the dunning process affect credit card and ACH transactions?

Problem Statement

You want to understand how the dunning process affect credit card and ach transactions.## Related Scenarios

• What happens when a credit card payment is declined in Chargebee?
• How are ACH debit transactions handled during the dunning process?
• What fees are associated with declined ACH transactions?

Solution

The dunning process in Chargebee is a critical component for managing failed payments. Understanding how it affects different types of transactions can help you manage your billing more effectively.

Credit Card Transactions

1. Declined Payments: When a credit card payment is declined, no funds are received by your account.

   • No fees are assessed for declined credit card transactions.
   • The dunning process can be configured to retry the payment automatically.

2. Dunning Configuration: Ensure that your dunning settings are properly configured to handle credit card declines.

   • Navigate to Settings > Configure Chargebee > Dunning.
   • Adjust the retry schedule and notification settings as needed.

ACH Debit Transactions

1. Initial Credit: ACH debit transactions are initially credited to your account.

   • If the transaction is later declined, the funds are pulled back.

2. Declined Transactions: A fee of $7.50 is assessed for each declined ACH transaction(if you're using Stripe). Please verify the exact fee by contacting the gateway.

   • This fee is charged to cover the costs associated with the reversal process.

3. Dunning Configuration for ACH: Similar to credit cards, ensure your dunning settings are optimized for ACH transactions.

   • Navigate to Settings > Configure Chargebee > Dunning.
   • Set up notifications to inform customers of declined ACH payments.

Important Notes

• Dunning must be enabled to automate retries and notifications for failed payments.
• Regularly review and update your dunning settings to align with your business needs.
• Consider informing customers about potential fees for declined ACH transactions to avoid surprises.
• For detailed guidance on configuring dunning, refer to the dunning management guide.