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Dunning

Overview

Dunning is a term used to describe the business process followed for accounts that are delinquent or for which a transaction against a credit card on file has been declined. In Aria, you can configure your dunning rules to follow for delinquent accounts.

You can associate dunning processes with one or more plans. You can also set up your dunning processes to do the following when a payment is due, the due date has passed, and a customer has not paid:

  • Change the account status
  • Send an email to the customer
  • Re-attempt the collection after a specified number of days
  • Charge a late fee

Customers will go into dunning if their balances go over the applicable threshold:

  • For accounts with an electronic payment method, dunning will begin if the customer's balance goes over the Minimum Collection Threshold. The Minimum Collection Threshold is the minimum amount for which Aria should attempt a collection.
  • For net terms accounts, dunning will begin if the customer's balance goes over the Net-terms Threshold Balance. The Net-terms Threshold Balance is the minimum statement balance that a net terms account should have in order for the account to be considered past due.

You can create a unique, customized dunning process for each channel, country, or language.

Important Notes

  • It is recommended that your dunning process be the same duration or shorter than the billing interval of the plan to which the process applies. That way, you may be able to collect a payment on a past due amount before a customer's next payment is due.
  • If a customer changes the payment method from net terms to an electronic payment method and has an outstanding balance, Aria might not place the account into dunning. You may choose to collect the customer's outstanding balance using the customer's new payment method.
  • If a customer changes the payment method from an electronic payment method to net terms and has an outstanding balance, that outstanding balance will be reflected on the customer's next statement.
  • It is recommended that you have consistent dunning processes with matching numbers of steps across all of your plans available for customers to select. This is so that your dunning processes will work when customers switch plans. For instance, if a customer is on Plan A and is on dunning Step 3 of Plan A, then switches to Plan B that has 2 dunning steps, Aria will not be able to complete Step 3.
  • Be sure to consider the effects on customers when you change a dunning process. You may need to manually take any required action on accounts that are already in a dunning process that you have changed. For instance, you may need to manually change on account's status. 
  • If a collection fails when a customer attempts to place an order, the account will not go into dunning. Dunning only applies to recurring invoices.

 


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