How does disabling dunning affect credit card and ACH transactions?
Related Scenarios
- What happens to credit card transactions when dunning is disabled?
- How are ACH debit transactions affected by dunning settings?
- What fees are associated with declined payments?
Solution
When dunning is disabled in Chargebee, it affects how declined payments are handled for both credit card and ACH debit transactions.
Credit card transactions
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Declined payments — When a credit card payment is declined, no funds are received by your account.
- No fees — Declined credit card transactions are not charged fees unless the payment is successfully processed.
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Dunning configuration — Review your dunning settings at Settings > Configure Chargebee > Billing Rules.
- Check when dunning was enabled or disabled to understand its impact on your transactions.
ACH debit transactions
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Initial credit — ACH debit transactions initially credit the funds to your account.
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Declined payments — If an ACH debit is declined, the credited funds are pulled back from your account.
- Fee — A fee of $7.50 is assessed for each declined ACH transaction.
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Dunning impact — When dunning is disabled, Chargebee does not automatically retry the payment.
- You may need to manually follow up with customers to resolve payment issues.
Important Notes
- Regularly review your dunning settings to ensure they align with your business needs.
- Consider implementing a manual follow-up process for declined payments when dunning is disabled.
- Be aware of fees associated with ACH transactions to manage costs effectively.
- Enable dunning to automate retries and reduce manual intervention for declined payments.
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