The circuly system automatically initiates recurring payments according to the frequency specified in the subscription contract.

‍

In a subscription-based business model, receiving payments on a recurring basis is essential. However, this also increases the likelihood of encountering payment issues.

‍

Given the significance and workload associated with managing failed payments, the circuly system allows you to establish an automated workflow that outlines the necessary steps to be taken when a payment fails.

‍

The operations that can be automated by the circuly system include:

‍

• The number of times a retrial attempt is made. 
• The interval between each retrial attempt.
• The number of days in the past the circuly system is checking to identify failed payments. 
• And what happens when a customer has are two payments with the failed status and these payments have already been retried the maximum number of times. 

‍

One payment cycle has “x” number of payment retrial attempts for a particular payment. “2 payment cycles” is when your customer has two failed payments that have already been retried by the circuly system “x” number of times. 

‍

Note: the value of “x” is the maximum number of payment retries and can be defined by going to > Settings > Invoice & payment > FAILED PAYMENT > Maximum number of payment attempts. 

‍

‍

Here’s how this works

‍

Let’s assume that you want to set up a flow for retrying failed recurring payments. You wish to retry a failed payment a maximum of 3 times automatically by the circuly system before you can retry it manually. Therefore you define the settings value as following. 

‍

Maximum number of payments attempts = 3

‍

Additionally you want to cancel the subscription of a customer who has two failed payments that have already been retried a maximum number of times. Therefore you do the following. 

‍

Cancel subscription on failure = enabled 

‍

When the circuly system detects a failed payment, it will automatically retry the failed payment 3 times and this will count as one payment cycle. 

‍

If the customer has another recurring payment that failed to be charged then the circuly system will retry this payment 3 times and this will count as the second payment cycle. 

‍

As soon as the customer has two failed payment cycles the circuly customer will set the subscription status as pending return which indicates that the customer has to send the product back since its not possible to collect the recurring payments from this customer. 

‍

FAQ

‍

What happens if the Cancel subscription on failure setting is disabled and the maximum number of payment attempt is defined?

‍

If the Cancel subscription on failure setting is disabled the subscription will not be set to pending return even if the customer has more than 1 recurring payment with the failed status. 

‍

The subscription will remain in the active state. 

‍

In this case a circuly user is required to take manual action. 

‍

The best course of action is to get in touch withe customer and initiate a dunning process against the customer in case of no response. 

‍