Collections Management: #3 Tackling Payment Failures

Sam refreshed the dashboard.

"Payment failed".

Same customer. Same subscription. This is happening for the third time. He sends a usual email: "Your renewal payment failed again. Could you please check and retry?"

A couple of days passed, and there was still no response. Sam calls the customer, "Hey, could you update your card details or retry the payment?"

"Oh, yes, yes.. I'll do it today. Just remind me later this evening", the customer responded casually. That "remind me later" became multiple reminders. By the time the payment finally went through, Sam had invested more time following up on one failed transaction than on handling five smooth customers.

At that moment, he realised something important. Failed payments are a niche issue, but following up on them is the real problem.

Dunning to Rescue 

Dunning management in Zoho Billing takes over the moment a payment fails and handles payment recovery automatically. All you need to do is configure the rule for it.

Standard Dunning 

The standard dunning process enables you to configure retries for both online and offline subscriptions.

For online payments, such as card, ACH, and UPI mandates, Zoho Billing automatically retries the payment at predefined intervals, for example, on Days 1, 3, and 7. Whether the payment attempt is successful or not, the customer is eventually notified. The subscription remains active during these retries until it reaches the last and final attempt. Businesses can configure whether the subscription should remain active or be cancelled after all retries are complete.

For offline payments, such as cash or bank transfers, dunning doesn't retry. Instead, Zoho Billing automatically sends follow-up reminders at increasing urgency. Every delayed payment receives a structured and consistent notification sequence. Even for offline dunning, businesses can configure the final action to be taken on the subscription after it has been escalated to the customer.

Advanced Dunning 

Pause & Resume Dunning 

Sometimes, customers genuinely need time to update their payment details, talk to their bank, or resolve a card issue. Now, dunning can be paused for a specific invoice with the following conditions:

• The resume date must be earlier than the next billing date.

• The customer can manually resume the dunning process at any time before the scheduled resume date.

When dunning resumes:

• If the selected resume date falls between scheduled retries, the next retry will occur on the next scheduled retry date.

• If the resume date is after the final retry, Zoho Billing automatically triggers a retry within a day.

This helps businesses stay structured while giving customers time to breathe.

Stop Dunning 

At any point, you can decide to stop pursuing payment retry for an invoice under dunning. Zoho Billing allows you to,

• Stop the dunning process entirely, removing the subscription from the dunning flow.

• Mark the next retry as the final attempt for the auto-charge subscription. 

If the upcoming retry is set as the final attempt (whether successful or not), the configured action under the standard dunning rule for the final action will be triggered.

On-Demand Dunning  

Zoho Billing provides an option to send a link to update payment information when we notify customers of payment failure. This enables customers to update their information instantly without needing to navigate the interface. If a customer updates their card or fixes a billing issue and says, "Can you try charging again now?"

You don't have to wait for the next scheduled dunning to attempt the payment. Zoho Billing offers an On-demand Retry option, enabling businesses to try charging the customer immediately and directly from the invoice. This avoids waiting time and reduces the risk of failure.

Multi-Dunning Rules 

Not all customers should be treated as the same. Some require more time for grace, while others need quick closure. Zoho Billing supports multiple dunning rules, allowing businesses to assign different retry strategies to different subscriptions.

Each rule includes:

• A personalised retry schedule (number of retries + interval)

• Unique email template for communication.

• Criteria that determine when the rule applies.

• Priority order (Zoho matches rules based on priority)

You can set these criteria based on,

• Customers

• Subscriptions

• Plans or Product

• Invoice value

• Currency

• Billing Frequency.

A total of six unique rules can be created, including the default one. High-value customers can receive more retries and personalised emails, while other customers can have shorter cycles.

​
Reports Based on Dunning 

When payment fails or an invoice enters a dunning cycle, it's more about the retries than the visibility that a business should get. The Under-Risk report in Zoho Billing provides businesses with a real-time view of all transactions currently under the dunning process. It highlights which customers are at risk of churn or suspension, how long payments have been pending and which retry stage each invoice is in.

​
To track down customers who dropped off due to churn, Zoho Billing offers the Churned after Retries report. This report helps businesses re-engage with those customers, as the downgrade/churn was not intended to occur. This gives a high chance of winning them back.

​
What Dunning Management Does to Business 

With these capabilities, Zoho Billing shifts the handling of failed payments from a reactive to a proactive approach. Payment retries are automated, and customers receive notifications without requiring manual intervention. Businesses can pause, stop or define a final retry action. Sending personalised emails and providing time for customers based on their worth ensures reliability and trust.

On the whole, the automated dunning process helps businesses to keep the payment process organised and, at the same time, reduce the risk of losing control over failing payments.

 

Up Next: Collection as a Journey

 

 

• Topic Participants

• Hari Hara Sudhan. S

  

• Sticky Posts

• Community Learning Series | Digest #5 — September 2020

  Dear customers, We're happy to bring you the September edition of our #CommunityDigest! Keep track of your subscription KPIs right from your smartphone: Last month, we enhanced our Android mobile app to help our customers get daily updates on their business health. We got to know from a lot of customers that this has made their job much more easier because they no longer have to keep a reminder to manually check on the previous day's revenue or activations. If you have not downloaded it yet, here's

• Community Learning Series | Digest #4 - August 2020

  Dear customers, We hope you're staying safe and healthy. I'm happy to bring you the fourth edition of our #CommunityDigest with some brand-new updates from us. 1. Daily Business Updates (for Android users) The Zoho Subscriptions Android app has got a cool new update: You can now get a push notification to your smartphone that lets you know how many activations and cancellations have taken place, and what's the net revenue for the previous day. The best part is, you can tell the app when exactly you

• Community Learning Series | Digest #3 - July 2020

  Dear customers, We hope you're staying safe and healthy. We're glad to bring you the July edition of our #CommunityDigest. New community members can view our previous newsletters here. This time, we have two major updates and three interesting topics for you: 1. Zoho Subscriptions Developer Community Since the inception of Zoho Subscriptions, our team believed that the recurring billing platform we provide should be able to offer an extensive API library that empowers businesses to automate most

• Introducing: Community Learning Series | Digest #1 - May 2020

  Dear customers, We hope you are staying safe and healthy. Helping businesses manage their customer subscriptions more efficiently has always been, and always will be, our goal at Zoho Subscriptions. We strongly believe this is possible if we grow together as a community and share what we know with each other. To nurture this shared learning experience, here is our brand-new Community Learning Series! ​ Welcome to the first edition of our digest! Each edition of our community digest includes guides

• Recent Topics

• How do I create an update to the Cost Price from landed costs?

  Hi fellow Zoho Inventory battlers, I am new to Zoho inventory and was completely baffled to find that the cost price of products does not update when a new purchase order is received. The cost price is just made up numbers I start with when the product

• Price Managment

  I have been in discussions with Zoho for some time and not getting what I need. Maybe someone can help explain the logic behind this for me as I fail to understand. When creating an item, you input a sales rate and purchase rate. These rates are just

• Actual vs Minimum

  Hi all, I am sure I am not the only one having this need. We are implementing billing on a 30-minute increment, with a minimum of 30 minutes per ticket. My question is, is there a way to create a formula or function to track both the minimum bill vs the

• Generate leads from instagram

  hello i have question. If connect instagram using zoho social, it is possible to get lead from instagram? example if someone send me direct message or comment on my post and then they generate to lead

• Kaizen #234 - Automating Deal Handoff with Zia Assistant API, Workflow, Deluge, and Widget in Zoho CRM

  Hello all! Welcome back to a fresh Kaizen week. In this post, we will explore how to automate the deal handoff process in Zoho CRM using Zia Assistant API + Workflow + Deluge + Widgets. Here’s how the final output looks when a deal is reassigned 1. Deal

• Warranty Service and Repair in Zoho FSM

  Hi There, We are a retail store that sells products and also performs installations and repairs. Our field technicians handle this work. Some repairs are covered by manufacturers, who reimburse us for both parts and labour. In these cases, we perform

• How do you print a refund check to customer?

  Maybe this is a dumb question, but how does anyone print a refund check to a customer? We cant find anywhere to either just print a check and pick a customer, or where to do so from a credit note.

• Ability to assign Invoice Ownership through Deluge in FSM

  Hi, As part of our process, when a service appointment is completed, we automated the creation of the invoice based on a specific business logic using Deluge. When we do that, the "Owner" of the invoice in Zoho FSM is defaulted to the SuperAdmin. This

• All new Address Field in Zoho CRM: maintain structured and accurate address inputs

  Availability Update: 29 September 2025: It's currently available for all new sign-ups and for existing Zoho CRM orgs which are in the Professional edition exclusively for IN DC users. 2 March 2026: Available to users in all DCs except US and EU DC. Latest

• Enhancement to ICR’s field prompting: Preferred data extraction using advanced field prompting

  Dear Customers, We hope you’re well A quick background Intelligent Character Recognition (ICR) comes as part of Zia’s optical recognition capability called Zia Vision. When we introduced it last April, the data extraction was training-based and was applicable

• See a list of all records enrolled in a cadence?

  I am looking for a way to see a list of all leads or contact currently enrolled in a cadence. I do not see any way to do this through the cadence UI.

• Limitation in chart of accounts

  There is a limitation of 4000 accounts in chart of accounts  Zoho needs to remove this limit

• How do I change the account bank charges are charged to?

  I want bank charges charged to my Credit Card Fees account. Is there a way to do this?

• Real signature in Zoho Expense PDF report ?

  Hello ! Is there a way to put a real signature on the signature line when a PDF report is generated in Zoho Expense? Through Zoho Sign or another way? Can't seem to make it work.

• Copy paste settings

  Hello all i have 2 organizations running in ZOHO books in one organization i have customised Tax rates, codes and customized templates instead of manually doing again in org 2 can i have some shortcut to copy paste or export and import??

• Custom TDS on Vendor Credits via API

  Hi, We are using Zoho Books APIs for posting Bills and vendor credits. We are unable to post custom TDS amount posting vendor credits. Can you please share the API spec and Payload that need to be sent for Custom TDS for Vendor Credits.

• "Unlink" Advance from Bill without Deleting the Payment Record

  I am writing to highlight a significant workflow issue in Zoho Books (India Edition) regarding Vendor Advances and Bills. The Scenario: I recorded an Advance Payment to a vendor. I matched/reconciled this payment in the Banking module. I received a Bill

• Advance Payment Record Removed When Deleting Applied Credit from Bill

  Hello, So while working with vendor advance payments, I noticed that removing the applied credit from a bill also removes the corresponding entry from the Payments Made section. What I did : Recorded an advance payment to a vendor through Payments Made.

• What is the best way to convert MSG file to Word format?

  The best way to convert MSG files to Word format is by using a reliable and professional tool Aryson MSG file Converter. Manual methods are often time-consuming and may not preserve email formatting, attachments, or metadata accurately. In contrast, Aryson

• Address Typeahead Extension for Zoho Books

  I installed the Address Typeahead extension for zoho books but when I went to configure it, it said that that version was deprecated. Is there a newer version somewhere?

• How to create a new Batch and update Stock via Inventory?

  Hi everyone, We are building an automation where a user enters batch details (Batch Number, Mfg Date, Expiry, and Quantity) into a Custom Module. I need this to trigger an API call to Zoho Inventory to: Create the new batch for the item. Increase the

• Zoho Projects : Task should auto-update to 'In Progress' if timer started

  Namaskaram. Right now, if a Task's timer is started, the Task stays in 'Not Started' status. One has to manually update it to 'In Progress'. From a #uxdesign standpoint, it is an unnecessarily two step process to start working on a task. It would be better that, if I start the timer on a task, it should automatically change to 'In Progress' status. Crafted with ❤️ Zoho Gurus | Zoho One Practice Team @ CubeYogi Zoho Authorised Partner | 7+ Yrs | 200+ Projects | 100+ Customers

• Invoice template with sales tax totals

  Hi everyone,  I am trying to edit my invoice template so that only the total sales tax collected for my tax group shows up. Right now, under by sub total, each individual tax shows up and that takes up a lot of unnessary space, so I just want the one

• Zoho Delayed Posting & Loss of Article Thumbnails on BlueSky

  Hello! I am wondering if anyone else has had the either of the following issues when posting to socials via Zoho and if there is a fix? 1. Post says it is scheduled or it is live when sent off via Zoho but it doesn't show up on socials till some time

• Connection Not Secure (Certificate Mismatch) Error

  Hi, Just a fyi, when you go to https://bigin.zohocloud.ca/bigin/Home you get a "Your Connection Is Not private" error. (Certificate mismatch to domain.) I get to that page after I have signed up and signed in as a customer and select the Access Bigin

• Recording the Investment

  Hello, - One Investor Invested to our company, So how do we record investment which we received in our bank in the Zoho books ? - How do we record if we provide shares to the investor in the Zoho books? Thanks

• Export Invoices to XML file

  Namaste! ZOHO suite of Apps is awesome and we as Partner, would like to use and implement the app´s from the Financial suite like ZOHO Invoice, but, in Portugal, we can only use certified Invoice Software and for this reason, we need to develop/customize on top of ZOHO Invoice to create an XML file with specific information and after this, go to the government and certified the software. As soon as we have for example, ZOHO CRM integrated with ZOHO Invoice up and running, our business opportunities

• Client and Vendor portal at the same time

  We have companies that serve both as clients and vendors and they are linked. However, we have a problem giving them access to the vendor/client portal. If they accept the invitation from the client portal, when we try to invite them to the vendor portal

• Integrate Multiple ZohoBooks organization with zoho projects

  We have successfully connected our Zoho Books with Zoho Projects for synronizing timesheet data. Our Business specialty is, that the staff of the Main company (A) is working on several projects, but the Clients are sometimes contracted and paying to a

• ZOHO CRM Button Integration

  Hi Team, I’m currently working with Zoho CRM along with a custom application where I fetch deal details from the CRM and use them based on my requirements for each deal. Now, I want to enhance this setup. I plan to create a button on the Deal Detail page

• Ways to calculate the difference form two years or months

  Hi to everyone I have this request: I need to show the difference or variation from two periods (years or months) whether using a Pivot View or a graph, in this is case is better in a Pivot view. In the pivot view I will have the amount or results from

• Zoho CRM strips whitespace in text fields

  When editing field text with multiple spaces: CRM - both UI and API trim / compress the whitespace to a single space when saving: Is this known / expected / documented behaviour?

• Career site URL - Suggestion to modify URL of non-english job posting

  Hi, I would like to suggest making a few modification to career sites that are not in english. Currently, the URL are a mix of different languages and are very long. It makes for very unprofessional looking URLs... Here is an example of one of our URL

• Uplifted homepage experience

  Editions: All editions. Availability update: 17th February 2026: All editions in the CA and SA DC | JP DC (Free, Standard and Professional editions) 23 February 2026: JP (All Editions) | AU, CN (Free, Standard, Professional editions) 27 February 2026:

• Cliq iOS can't see shared screen

  Hello, I had this morning a video call with a colleague. She is using Cliq Desktop MacOS and wanted to share her screen with me. I'm on iPad. I noticed, while she shared her screen, I could only see her video, but not the shared screen... Does Cliq iOS is able to display shared screen, or is it somewhere else to be found ? Regards

• How to update "Lead Status" to more than 100 records

  Hello Zoho CRM, How do I update "Lead Status" to more than 100 records at once? To give you a background, these leads were uploaded or Imported at once but the lead status record was incorrectly chosen. So since there was a way to quickly add records in the system no matter how many they are, we are also wondering if there is a quicker way to update these records to the correct "Lead Status". I hope our concern makes sense and that there will be a fix for it. All the best, Jonathan

• Introducing Contract Settings & Backdated Contracts in Zoho Contracts

  We are rolling out updates that give you more control over how contracts are created and managed in Zoho Contracts. From defining default workflows with Contract Settings to aligning agreements with real timelines using Backdated Contracts, these enhancements

• Celebrating our customers on International Client's Day

  Hi everyone, Every customer is part of our Zoho Desk family, and we wouldn’t want to miss celebrating you on this special day. This International Client's Day, we’d like to take a moment to appreciate every customer who has helped us grow and build meaningful

• Zoho Books | Product updates | February 2026

  Hello users, We’ve rolled out new features and enhancements in Zoho Books. From Advanced Reporting Tags to the ability to mark projects as completed, explore the latest updates designed to improve your bookkeeping experience. Introducing Advanced Reporting

• Faster Ticket Response with use of Snippets in comments

  Hello everyone, Responding to tickets often involves repeating the same messages, whether it is sharing updates with customers or leaving notes for internal collaboration. To make this easier and more consistent, we are allowing agents to use snippets

• Next Page