What is Dunning Management? 

Dunning Management is a process that businesses use to communicate with customers to recover failed payments typically for subscription-based or recurring billing models. It uses automated reminders, retry attempts, and other techniques to ensure payments are successfully collected.

How Dunning Management Works:

1.First it identifies failed transactions due to reasons like  insufficient funds, expired cards, or technical errors.

2.Then the  system retries the payment after a specific interval. Many dunning systems offer configurable retry schedules to maximize success rates.

3.The Dunning system sends automated reminders via email, SMS, or other channels to inform customers about the payment issue and guide them to resolve it.

4.It provides customers with tools to update their payment information, such as new credit card details or a different payment method.

5.If reminders are ignored, dunning systems may escalate communication, such as sending stronger notices or temporarily suspending services.

6.Dunning systems work seamlessly with subscription billing platforms to ensure all updates and payments are synchronized.