Support #11444
closedSubscription Payment Failure Flow
100%
Description
Failure Event & Detection
Capture the payment webhook notification or gateway error code (e.g., insufficient funds, card expired, bank downtime, processing error).
Categorize the Error
Soft Declines (Retryable): Insufficient funds, temporary bank downtime, or network timeouts.
Hard Declines (Action Required): Expired card, invalid payment method, or account closed.
User Communication & Notification
In-App Banner / Alert: Prompt the user immediately upon opening the app about the pending issue.
Dunning Email / SMS: Send an immediate clear notification stating why the payment failed and providing a direct link to update billing details.
Automated Retry Schedule (Dunning Period)
Implement smart retries (e.g., attempt payment every 2–3 days for up to 14 days) to handle soft declines like temporary low funds.
Grace Period & Access Control
Grace Period (e.g., 3–7 days): Maintain full app access while retrying to prevent immediate churn.
Past Due / Limited Access: If unresolved, restrict premium features while leaving basic account functions active.
Cancellation / Pause: Automatically mark the subscription as suspended or canceled if all retries fail after the full period.
Self-Service Resolution
Provide an intuitive Billing Settings UI where users can update payment methods, retry the charge instantly with a single tap, or select an alternative payment mode (e.g., Credit Card, UPI, PayPal).
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