Last Updated on May 17, 2023 by Ryleigh Stangness
If you process recurring payments for your business, it's important to keep your customers' payment information up to date, and using a Dunning Management tool can help.
A Better Way to Streamline Payments?
By ensuring that the credit card information you have on file is accurate and up to date for all your customers, you can be confident that automated billing payments will be processed on time and with the right credit card information.
A Dunning Management software tool, like the one offered by Helcim, can help your business maintain a steady stream of payments. The software works by notifying customers anytime they need to update the credit card information on their customer profile, so the information you have on file is up to date, and payments aren't declined because a customer's credit card has expired.
What is Dunning Management
Dunning Management is a tool that helps your business by automating the process of monitoring when customer payment information needs to be updated. The tool will automatically notify customers each time their credit cards are expiring so that your customers can update their payment information before their payments are declined and ultimately improve their payment method user experience.
What issues can Dunning Management help you with?
There are many reasons why a customer's credit card might be declined. Using Dunning Management software, you can automate the process of flagging and contacting customers when the following situations arise:
- When a customer's credit card has expired
- When a customer forgets to update their account when their personal information has changed. For example, if they've moved recently
- If the customer's credit card has been reissued because it was lost, compromised, or damaged
- If the credit card has hit the card limit and cannot process the payment
- If the customer has blocked your business from charging their credit card
How does Dunning Management Work?
Dunning management is a great tool for businesses who accept online payments, especially those who manage recurring payments or subscription billing. You can enable Dunning Management on any recurring payment plan in Helcim Commerce to ensure your customers' billing information stays up to date. Once enabled, here is how Dunning Management will work:
Step One: Detect which Credit Cards are Expiring Soon
The Dunning Management tool automatically detects which credit cards are about to expire and sends customers an automated email prompting them to update their payment information. Notifying customers that their card information needs to be updated before they expire will help prevent payment interruptions and declines.
Step Two: Management of Declined Cards
If a credit card is declined, the software will send an email to the customer letting them know that the payment was declined and how they can correct the situation.
Step Three: Customer Communication
Strong communication with your customers helps you build long-lasting relationships and trust. By enabling the Dunning Management feature, you are automating some of your customer communications while ensuring the messages stay timely and professional.
Step Four: Remove Non-paying Customers
Unfortunately, there will be situations where a customer does not pay for the service they signed up for. Using the Dunning Management software, you can remove customers with confidence because you know that you have given them an opportunity to correct the situation.
Is Dunning Management for You?
If you offer a subscription-based service or have customers that regularly submit recurring payments to your business, then the Dunning Management tool in Helcim can help you reduce customer attrition and streamline your payments.