As part of an omnichannel collections strategy, send customers a timely letter to inform them of a failed recurring payment and encourage them to update their payment information on file to avoid a service disruption.
Letter
Billing & Payments
Customize the letter template with your personalized logo, messaging, and signature.
Suggested merge variables include:
API Documentation:
Letter > Create a Letter > "file"
Standard Envelope Design Templates:
8.5x11 Letter: Design PDF (for 6 pages & less)
Flat Envelope: Design PDF (for >6 pages)
HTML Examples:
8.5x11 Letter: Download HTML
What is a failed payment notice letter?
A failed payment notice letter is a formal communication sent by a company to inform a customer that their payment attempt was unsuccessful. This letter typically includes the details of the failed transaction, reasons for the failure (such as insufficient funds or card issues), and instructions for resolving the payment issue.
What should be included in a failed payment notice letter?
The letter should include the date of the failed payment, the amount due, the reason for the failure (if known), and a clear explanation of how the customer can retry or provide an alternative payment method. It’s also helpful to include a new payment deadline and any potential late fees or consequences for non-payment.
When should I send a failed payment notice letter?
It’s best to send the letter as soon as possible after the payment failure, typically within 1 to 3 days of the failed transaction. Prompt communication gives the customer time to address the issue and helps avoid service disruptions or additional fees.
Can I include late fees in a failed payment notice letter?
Yes, if your business has a policy for charging late fees or penalties, you can include this information in the letter. Be sure to explain the conditions under which late fees will be applied, and if possible, offer a grace period for the customer to make the payment before additional charges are incurred.
How should I send a failed payment notice letter?
You can send the letter through direct mail if you need a formal, physical record of the communication. You can also send an email to underscore the urgency of the sitution. For higher amounts or important accounts, using a combination of both email and direct mail can ensure the customer is properly informed. As part of an omnichannel collections strategy, send customers a timely letter to inform them of a failed payment, followed up with email, push notification, or SMS.
