Happy Business Starts Here

Re: Cancel Customer's Subscription(s) After X Failed Payments

Cancel Customer's Subscription(s) After X Failed Payments

As a subscription SaaS business with thousands of customers paying monthly/annually with credit cards we need the ability to automatically cancel a customer's subscrition after X number of failed payment attempts.  


Right now we are handling this by sending a call out to Zuora, updating our application, then going back to Zuora to cancel the customers subscription.  This is a tad circuitous, but also is yet another business use case where Zuora let us down and forced us to add more billing logic to our own application.


Here are the list of other subscription billing services (that I know of) that have this feature:






All of these subscription billing systems have this ability.  As the subscription billing platform why doesn't Zuora?

Zuora Alumni

Hi nick


I agree this process needs to be much easier. Would be good to understand the billing treatment that you would like to have.


Our customer base has historically trended towards B2B, so the decisions around customer outreach, invoice write-off, and cancellation can vary quite a bit.


Do you generally write off the existing invoices?

Would you want to cancel the subscription completely, or suspend it instead?

Does the customer account status change or stay active as a result?


We're considering a native implementation of this, but in the short term we have a utility on RBM connect that you can leverage to help with the dunning process.



Keenan Simmons

Product Management, Payments at Zuora

Zuora Alumni
Status changed to: Under Consideration

Something that would be beneficial in this sense would be some form of a workflow that was logic based that would allow a subscription to be cancelled after "x" number of days since a balance has accumulated and a payment method failed. 


In our particular business case it would be great if the existing invoice could be written off, subscriptions cancelled, and the customer's accounts status changed from active to cancelled. I however do feel like the ability to customize things to cater to different business cases would be necessary, but also maybe different workflows to accomodate different groupings of accounts. For instance group 1 receives something similar to what I described while a different group of clients, group 2, has a different set of actions taken. 


We built an application to do exactly what you described in your post.  We found basing cancelation rules on the number of payment failures a bit restricting and have since update our application to use days past 'invoice due date' to determine when to cancel the subscription and writeoff the invoice.  Once an unpaid invoice exceeds the threshold of past due days we use a couple of different account level attributes such as batch number, net terms or auto pay flag to determine how to treat the subscription.  To give our collections team some flexibility we added a custom field on the account and invoice that allows us to extend the unpaid period or exclude the account from cancelation logic on a case by case basis. Switching to 'days past due' allows us to manage different payment failure rules for multiple products billing on the same account.  Of course this would all work better if payment attribute were at the product level instead of account level... hopefully we'll see that change by the end of the year.

Savvy Scholar

It would be great to be able to cancel a subscription, and even an amendment if only the amendment has not been paid. Ideally, the cancellation would be done at the initial term start so that a credit note is sent to the customer.