Configure Payment Recovery and dunning options
Choose what happens when payment fails for an automatically-collected subscription. You can turn on Tactical Retries, send optimized email notifications, and show retry payment forms in your app or website.
When payment fails for an automatically-collected subscription, the subscription status changes to past due and Payment Recovery, part of Paddle Retain, gets to work to automatically recover the payment for you. This process is called dunning.
You can configure how Payment Recovery notifies customers about failed payments, turn on Tactical Retries, and choose what happens to past due subscriptions when the payment isn't recovered.
How it works
Paddle Retain combines world-class subscription expertise with algorithms that use billions of data points to automatically reduce churn. Paddle Billing is fully integrated with Retain, meaning it automatically handles dunning and retention for you.
Payment Recovery, part of Paddle Retain, automatically recovers subscriptions that are at risk of churning because of payment failure and expired payment methods.
If you use Paddle Billing without integrating with Paddle Retain, failed payments for automatically-collected subscriptions are retried up to seven times over a 30-day window before they're canceled. Turn on Paddle Retain for more comprehensive payment recovery options and control over the customer experience.
To learn more about Payment Recovery, see Payment Recovery
Before you begin
Paddle Retain works with live data for your billing platform. This means you can't integrate or test with sandbox accounts.
Set up Paddle Retain
If you haven't already, connect Paddle Retain to your billing platform and set up Paddle Retain.
Use Paddle Billing? Billing automatically integrates with Retain, so you're ready to get started. Click the Paddle > Retain link to jump to Retain to review your setup.
Check your Retain email settings
Emails sent from Paddle Retain are designed to look like they come from you or someone on your team. Review the email sender and reply-to addresses for your email addresses in ProfitWell > Retain > Control Center.
Pause or cancel past due subscriptions
When all payment recovery attempts are exhausted, Paddle Retain can automatically pause or cancel subscriptions for you. You can choose whether subscriptions should pause or cancel.
In Paddle Billing, canceled subscriptions can't be reinstated. Create a new subscription for customers who have canceled if they want to return. You can create a transaction with data from the previous subscription to make this easier for customers.
Choose "Pause subscription" or "Cancel subscription" from the dropdown under the subscription status heading.
Click Save when you're done.

Send optimized payment recovery emails
Paddle Retain sends emails to customers to let them know that their renewal wasn't processed successfully.
You can preview messages, but we handle the content for you. Our team of experts have sent millions of messages, testing and optimizing the content and cadence across hundreds of thousands of transactions. We found that plaintext, personal emails work best.
Retain sends up to four payment recovery emails. The exact timing of the Retain emails depends on some algorithmic work that we do behind the scenes, but this is when emails tend to be sent:
# | Subject | Day sent |
---|---|---|
1 | Your 💳 payment for [your product] failed | Day 1 |
2 | 2nd notice: Another unsuccessful payment for your [your product] account | Day 3 |
3 | 3rd attempt: Unsuccessful payment for [your product] | Day 5 |
4 | Final notice: Need updated [your product] billing information | Day 7 |
We've A/B tested thousands of emails and their cadence to optimize recovery rates.
Toggle Payment Recovery Emails on to send notifications by email.
You can preview emails by clicking the eye icon.

Turn on payment recovery notifications
Payment recovery notifications reach customers when they're using your product, maximizing the likelihood of payment recovery. They prompt customers to update expired credit cards in your web app or on your commercial website with an unobtrusive notification.
When customers click the link to update, they're presented with a secure form to enter their details there and then — no need to go to another page.
Toggle Payment Recovery Notifications on to prompt customers to update their payment details in-app.
You can preview a payment recovery notification by clicking the eye icon.

Turn on Tactical Retries
You only have so many chances to retry a credit card payment. Tactical Retries analyzes billions of credit card transactions across the Retain network and uses algorithms to retry payments at the best time for success. We look at product type, card type, customer location, and more than fifteen other factors to boost payment recovery by an additional 10 to 15 percent.
Toggle Tactical Retries on.

Send payment recovery messages by SMS
SMS is a reliable way of reaching customers, with 90% of text messages being read within three minutes of receipt. Retain can send text messages to customers to further boost payment recovery, targeting customers at the right time in a highly personalized way.
Messages include a link to update payment information — all handled by Paddle.js on your website, with no sign in required.
Grab a copy of the Retain SMS phone number template and fill it in. Send it to us at sellers@paddle.com.
Fill out the Retain SMS recovery form. We use this information to register your details with Twilio, our SMS provider.
We'll take care of the rest and reach out when you're ready. This may take fifteen business days.
Simulate a payment recovery attempt
Now you've set up Payment Recovery, simulate a payment recovery attempt to see how it looks to customers.
Related pages
- Configure Payment Recovery and dunning options
- How it works
- Before you begin
- Set up Paddle Retain
- Check your Retain email settings
- Pause or cancel past due subscriptions
- Send optimized payment recovery emails
- Turn on payment recovery notifications
- Turn on Tactical Retries
- Send payment recovery messages by SMS
- Simulate a payment recovery attempt
- Related pages