What is Dunning?
Definition
The automated process of retrying failed subscription payments and communicating with subscribers about payment issues to recover revenue.
Understanding Dunning
Dunning is the payment recovery process that happens when your subscription payment fails. When a charge is declined (expired card, insufficient funds, bank block), the service enters a dunning flow: it retries the payment over several days, sends email notifications asking you to update your payment method, and eventually suspends the subscription if payment is not recovered. Smart dunning systems retry at optimal times and through different payment processors to maximize recovery rates.
For subscribers, responding quickly to dunning emails helps avoid service interruption.
Related Terms
Grace Period
A short window of time after a payment fails or a subscription expires during which the service remains accessible before being suspended.
Recurring Billing
An automatic payment system that charges a customer at predetermined intervals for ongoing access to a product or service.
Payment Method
The financial instrument used to pay for a subscription, such as a credit card, debit card, PayPal, or bank account.
Cancellation
The act of ending a subscription, which stops future billing and eventually terminates access to the service.