Credit card declined - informing clients?

Oedo

Hi,
We take monthly automated card payments from our clients for small amounts.

I'm wondering what the most polite way is to tell a client when their card is declined?

They could have signed up to the service months ago and the monthly payments are being taken every month and then all of a sudden the card is declined (after multiple attempts spanning a week or so).

Is it better to make the mail look 'automated' in some way, i.e something like;

Dear client this is a notification to let you know your card was declined for xxxxxxxxx, to update your payment information click here

or is it better to go for a more personal approach?

I'm worried about embarrassing the client or implying that either they can't afford to pay or that they were trying to avoid payments.

Thanks

greasepalm

i might go the personal approach so as not to look like a spam email,january for all of us is hard and limited funds available and hoping to hear from you soon,we will be adding this to your next payment date unless settled before hand?

jimmii

It depends on the relationship you have with the clients but I think the automated approach is probably best just gets the job done. Cashflow goes up and down for everyone always going to be the odd time where it happens.

Gloomtastic!

I recently had a couple of automated card payments rejected. There was definitely money in the account but because my card was badly worn it wouldn't work in atm's so I had it replaced. New card, new card number, rejected old card payments.

Be firm but diplomatic and I'd vote for automatic-style response.

mneylon

We automate it. If the credit card fails they get an email saying as much.

Also retrying the same cards over and over usually doesn't help that much, though you'll usually end up incurring gateway fees.

Trojan

Also known as "dunning". There are some online services (e.g. stunning.co) that specialise in recovering these accounts.

AnCatDubh

Automated is fine, but as I think you are already alluding to just be aware that there is a poor soul on the receiving end of your automated email who may be mortified by it happening. This is probably just the wording of the notification itself and everyone will receive such wording differently - so yes, be careful - show empathy and understanding in your communication with your customer while being professional. Always allow for the mistake not being at their end. Let me say that again - always allow for the mistake not being at their end because it may not be (it may not be at your end either!). Banks on occasion mess up and although it may be seldom, always provide for the potential of that being the reason.

It will be like water off the proverbial duck's back for some but quite upsetting for others. You need to understand both these perspectives. That's the reality of it. You'd be better if your communication compounded by potential upset doesn't make your customer decide they no longer want to avail of your service and unsubscribe - particularly if they are going through a lean month.

pedroeibar1

A simple, politely worded auto-response on payment being declined should be issued. We are talking of an automated process / small amounts here, so external debt collection is overkill. However, payments should not be rejected – it is the duty of the debtor to pay the amount on time by the means specified and agreed. It costs money to follow-up on missed payments and if that has to be done regularly on the same customer it would (on ordinary margins) make that customer unprofitable.
If it happens more than once with the same customer in a predetermined period the account should be placed on watch as it is a sign of poor finances or poor financial management. From such clues bad debts are avoided.

onedmc

The automated email is good but dont forget to blame the bank. The bank are the ones that declined the payment and there could be a number of reason not just bad credit. The cards could have been stolen, replaced, out of date, automated anti-fraud triggered, transaction type capped etc, so let them know this.

Of course the statistically most likely reason is "insufficient funds" but your not judging them and you dont know this.