Log in to read the version of docs relevant to your site, or use the dropdown versions
How does 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
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.
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
Initial Credit: ACH debit transactions are initially credited to your account.
If the transaction is later declined, the funds are pulled back.
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.
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.