Best Payment Providers for Subscription Businesses

Dunning is the process of recovering failed payments. Good dunning management includes automatic retry schedules, customer notification emails, card updater services, and backup payment method attempts. It can recover 10-20% of otherwise lost revenue.

They use smart retry logic (retrying at optimal times), automatic card updating (when cards are reissued), in-app payment update prompts, and email sequences to recover failed payments before canceling subscriptions.

If subscriptions are your core business, consider specialized platforms like Chargebee, Recurly, or Paddle alongside your payment processor. They offer advanced features like revenue recognition, subscription analytics, and complex pricing models.