---
name: failed-payment-dunning-ladder
source: https://app.decimal.ai/s/failed-payment-dunning-ladder@1/SKILL.md
source_sha256: a6e01ac8d67f
---

# Failed-payment recovery ladder

When a subscription charge fails, the job is to recover the payment across a short series of
messages that get more urgent over time — without ever tipping into a threat. Left to itself, the
base model tends to write a single generic "your payment failed" note, and when asked for a final
warning it reaches for collections-style language ("URGENT — settle your balance now to avoid losing
access"). Both lose the recovery. These conventions steer it back.

Three principles run through every stage:

- **Assume good faith.** A failed charge is almost always an expired or maxed-out card, not a refusal
  to pay. Every message before the last one reads like you are helping the customer fix a glitch, not
  chasing a debtor.
- **Lead with the fix, not the failure.** The single clearest action in every message is updating the
  payment method. The failure is the context; the fix is the headline and the button.
- **Escalate through clarity, not fear.** Rising urgency comes from a concrete factual clock — when
  the card gets retried, the exact date access pauses — never from punitive, shaming, or legal wording.

## The four stages

Send them in order over roughly two weeks. Do not skip a stage, and do not downgrade the account until
the final notice has gone out and its stated deadline has passed.

### Stage 1 — First notice (day 0)

A light, helpful heads-up sent the day the charge fails. Frame it as a small fixable hiccup: the card
probably expired or was declined by the bank. Offer the update-payment action and stop there.

- Do **not** mention suspension, downgrade, or any consequence yet — it is far too early.
- Do **not** imply the customer did anything wrong. Keep it warm and low-stakes.

### Stage 2 — Reminder (day ~3)

The automatic retry has run and failed again. A gentle nudge that reassures the customer nothing has
changed yet — their account is still fully active — and repeats the one-click fix. Mention that the
card will be tried again automatically so the clock feels routine, not punitive. Still no threat.

### Stage 3 — Escalating reminder (day ~7)

Now name the consequence, once, as something you want to help them avoid. State the specific date
access will pause if the payment cannot be processed. The urgency is real but the tone stays on their
side: "so you don't lose access, here's the one thing to update." Warm, factual, good-faith.

### Stage 4 — Final notice (day ~14, before any downgrade)

The last message before the account is paused. State plainly, and only once:

- the exact deadline and what happens after it — the plan pauses or downgrades (not deletion),
- that their data, settings, and history are kept safe and reactivation is instant the moment they pay,
- the single update-payment action.

Keep it calm and warm even here. No ALL-CAPS, no "FINAL WARNING," no collections or legal wording, no
shame. A clear consequence stated once lands harder than a threat repeated four times.

## Phrasing that kills recovery

| Avoid | Why it backfires | Use instead |
|---|---|---|
| "Settle your balance now or we close the account" | reads as a threat; assumes bad faith | "Update your card by the 14th to keep your access" |
| "Your payment is overdue / you are delinquent" | collections language; shames the customer | "We couldn't process your latest payment" |
| "FINAL WARNING" / ALL-CAPS urgency | panics without helping | one plain sentence naming the date and fix |
| "Failure to pay will result in…" | legalistic, cold | "If we can't process payment by X, your plan pauses" |
| Mentioning suspension in the very first note | scares off a customer whose card just expired | save the consequence for stage 3 and later |
| "As a courtesy we have not yet suspended you" | passive-aggressive; implies you're doing them a favor | just say the account is still active |

## What "urgency without threat" looks like

> **Stage 1 (aim for):** "Quick heads-up — the card on file for your plan didn't go through this month,
> which usually just means it expired. Updating it takes a few seconds and you're all set."
>
> **Stage 4 (aim for):** "This is the last reminder before your plan pauses on the 14th. Everything —
> your projects, settings, and history — stays safe, and you'll be back the second your payment goes
> through. One tap to update your card and nothing changes."

Both are urgent. Neither threatens. That balance is the whole skill.