The Memberships and Recurring Payments service automatically takes care of failed payments and expired cards on file, based on best practices.
Find below the card retry and communication steps taken by Loyalzoo to help easily manage failed payments:
Day 1 of a failed payment: Loyalzoo will email the merchant immediately (with the email we have on file for you) to let you know you have a failed payment from a particular customer and that we will continue to retry daily. No action from you is required at this point.
Day 2 of a failed payment: Loyalzoo will once again email you to let you know that the card is still failing but this time we also email the customer to let them know that they have a failed payment. No action from you is required at this point.
Day 3 of a failed payment: Action is required on your behalf at this point. We email you to let you know that the card has failed with each daily retry. We also email the customer again to let them know that they need to get in touch to rectify the issue. Loyalzoo also stops the subscription and the billing cycle.
***Note: If you have set an expiry date for the customers subscription, all communications to customers are turned off. Therefore, customers will not receive a communication email about failed payments. This is also the case if you have requested for all customer email communications to be turned off.
Expired cards: The Loyalzoo service already has a process that updates expired cards automatically. A small percentage of expired cards will not be updated automatically and in this instance the above steps will occur.
If you would like more detail on why the card was declined, you can find this information in the Clover transactions app.