Handling Paypal "Subscription Payment Failed" email notices - tips?

15 replies
Occasionally I get 'payment failed' emails from paypal for various customers whose credit cards don't go through on recurring subscriptions, eg month 2 or 3 or whatever. Any ideas on how to best handle these? Paypal retries the cc a few days later, but those seldom work from what I've seen.

I typically send a friendly email to the customer, forwarding the paypal email with a gentle reminder, such as "It looks like your credit card didn't get approved for your monthly (service) renewal, did you need any help in entering a different credit card, or updating your information with paypal, so you can continue your subscription?".

Any other tips/ideas? thanks -

ken
#email #handling #notices #paypal #tips
  • Profile picture of the author Joe Mobley
    Ken, I am a simple man.

    ----

    Betty,

    I received a message from PayPal that there was an issue with processing your payment. Is there something I can help with?

    Regards,

    Joe Mobley

    ----

    Almost always the problem has been an expired card.

    Joe Mobley
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  • Profile picture of the author Tenzo
    I think that's a great idea. From a customer standpoint, I have had this happen once in a while-I use a separate prepaid debit card for online purchases, and load money onto it manually. I've received emails from clickbank if a payment didn't go through, but I've never seen anything from paypal. I do get other emails from them, so I know they get through to my email account.

    If it were me, I'd appreciate a heads up before my subscription was cancelled.
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    • Profile picture of the author Joe Mobley
      Originally Posted by Tenzo View Post


      If it were me, I'd appreciate a heads up before my subscription was cancelled.
      Yep. I have never canceled a subscription for non-payment. I don't do anything until I hear from someone. (In all fairness, that hasn't been tested for more than 1 week.)

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  • Profile picture of the author Dan Grossman
    PayPal already handles the dunning process. The customer's already being notified by PayPal that their payment didn't go through, when the next attempt will be, and how to update their account. I don't duplicate that effort. If they want to let the subscription lapse, me pestering them about it won't change their mind, IMO.

    When someone's subscription lapses because they've failed to pay despite all the retries and notices, their account gets suspended (automatically; PayPal posts subscription failures and expirations through their IPN system, like all other payment status updates, so you can handle it programmatically). When they try to log in, they see a message that everything's there and waiting as soon as they start a new subscription to reactivate the account. There's even a discount offer for becoming a customer again. People do take the offer every once in a while.
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  • Profile picture of the author GarrieWilson
    Don't ask IF they need help, provide instructions or a link to them in the first email you send.

    Garrie
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  • Profile picture of the author kencalhn
    Hi - I'm seeing a record-high number of these notices lately, highest in over 8 years of doing these, from failed Paypal subscriptions -- anyone else?

    I send emails like this one I just sent today to a customer:

    --------------
    Hi John,

    Thanks for being a member with me for your (subscription service name) - did you need any help with this? If so, please contact paypal.com for support with getting this processed, so that you can continue with your subscription. And best wishes for a good holiday season ahead -

    Regards,
    Ken
    -------------

    Any other ideas for wording how to get these customers the help and motivation they need to continue subscriptions, eg if something simple like expired date passed, or whatevers' causing it?

    From a copywriting standpoint, I should add something like "I hope you can continue your subscription with me, because we've got some exciting new bonuses coming up in the months ahead, such as (example)" to keep them engaged.

    thanks -

    ken
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  • Profile picture of the author Dan Grossman
    Credit card declines on recurring bills have been a bit higher than usual this week, for me. I chalk it up to holiday spending. I don't think anything's wrong with PayPal if that's what you were thinking.

    My dunning process gives customers about two weeks to rectify whatever billing issue they're having before the subscription gets cancelled. 90% of the subscriptions become paid again within that period.

    If you really want feel-good wording, I use this in the first of the automated notices about a billing failure, mostly snipped from a suggestion on Patrick Mackenzie's blog:

    P.S. We're not the bank or the phone company. We're a small business, probably pretty similar to yours. You're not in trouble about this. If you need any help sorting it out, just reply to this e-mail for help. We really appreciate your business.
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  • Profile picture of the author dbarnum
    Depending upon the client, I forward a copy of Paypal's cancellation notice, to the client with a short note similar to this one below:



    Hi,

    This email below arrived from Paypal a short while ago here. So I'm just checking to see if communications have not been received here, as we have no notice from you of cancellation or other issues with your account. This may also just be a Paypal error, so here is the link to resubscribe: [insert your link there].

    Please let me know how I can help with your project and account at your earliest convenience, so everything is back on track ASAP.

    Thanks!
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  • Profile picture of the author kingoftraffic
    Usually a polite message saying that your sorry to see them go and if they would ever like to re subscribe place a link back to the membership site.
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  • December is my worst month every year, I think people max out their credit cards, just a guess.
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  • Profile picture of the author kencalhn
    I got 2 more of these today, for subscribers whose cc's didn't go through. Here's a template email I just wrote today that I'm using, fyi - any feedback/candid comments on how to improve it? thanks - k

    ===========

    Hi (name), thanks for having subscribed to (service). It appears your credit card didn't go through for this month's subscription; please login to your paypal account and update your information with a working credit card, if you wish to continue. If it's not updated by (date), your subscription and site/webinar access will be closed.

    If you need help updating your information, you can contact paypal help at the contact phone number here:
    https://www.paypal.com/us/webapps/he.../helphub/home/

    Here's 2 additional articles that tell you how to update your .cc info within paypal:
    https://www.paypal.com/us/webapps/he...=FAQ1414&m=SRE
    https://www.paypal.com/us/webapps/he...D=FAQ408&m=SRE

    Thanks in advance for updating your information, I hope that you'll be able to do so, to continue with me in (service name).

    Regards,

    Ken
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  • Profile picture of the author FrasserBeecroft
    Hi Ken,

    I'm new to all this so please excuse me. I like the earlier versions which were more personal - this seems a bit more 'regimented' - you're assuming that their credit card is at fault. I'm not saying that isn't the case but I guess you have to give your subscribers the benefit of the doubt initially ?

    This one you sent out is more of what I mean :

    Hi John,

    Thanks for being a member with me for your (subscription service name) - did you need any help with this? If so, please contact paypal.com for support with getting this processed, so that you can continue with your subscription. And best wishes for a good holiday season ahead -

    Regards,
    Ken
    -----------

    I've learnt that you should put yourself into the shoes of your customer. What email would you like to receive ? Whilst you may not be able to answer and cater for all your customers, I guess there must be a way to reach out to all.

    I know I've occasionally cancelled a subscription because I'm no longer using the service or I no longer see value in that service.

    What about asking the subscriber if the subscription has cancelled for any other reason as well as pointing them to paypal? You may be able to improve your own retention rate and gain more subscribers in the process...

    Just a thought and I hope that helps...

    Frasser
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  • Profile picture of the author TinkBD
    Even though *in theory* the customer has been notified by PayPal, I send a chatty email about.

    In my coaching days, I had many clients who missed the PayPal notification...

    These were all offline retailers, so it isn't like they were casual business people. Every one of them was horrified and renewed immediately.

    It was a valuable lesson about making assumptions that they *knew* that the Credit Card had been declined ;-)
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  • Profile picture of the author Alice12345
    Hello Ken,

    In my own personal experience, it is never good to assume anything with customers. I like to keep a closer eye on things. It is best to send a friendly or polite reminder to the customers to update them of what happened. This way, you don't unnecessarily cancel a subscription from a customer.
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  • Profile picture of the author Steven Miranda
    Yes , this happens in my business too. Just follow-up with them.
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