Automatic dunning

Automate customer communications to remind them of overdue invoices and recover outstanding balances through targeted dunning campaigns.

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Create campaigns

Automatic dunning uses campaigns that can be applied billing entity-wide or tailored to individual customers. Create multiple campaigns to suit varying thresholds or cadences, all aimed at recovering overdue payments. To set up a new campaign, go to Settings > Dunning and follow these steps:

1. Assign a name, code, and description for easy identification.
2. Set an overdue balance threshold with its designated currency.
3. Add additional currencies for thresholds as needed.
4. Specify the delay between attempts.
5. Define the number of attempts for the campaign.
6. Apply this campaign to a billing entity or a customer.

Overdue balance threshold

You can define thresholds for all supported currencies. When a customer reaches the specified threshold in their invoiced currency, the dunning campaign is triggered. If a customer’s invoiced currency is not supported in the campaign, they will not be eligible for it.

Attempts & delay

A dunning campaign begins when the overdue balance threshold is reached. Subsequent attempts follow the set delay. The campaign ends once the overdue balance is paid or all attempts have been exhausted.

Apply dunning to a billing entity

Setting a campaign at the billing entity level applies it to all customers that inherit the billing entity’s dunning behavior — except those who either:

• Have a specific campaign assigned to them, or
• Have dunning deactivated.

Alternatively, you can leave the billing entity without a campaign and assign dunning campaigns individually to each customer.

Automatic dunning on customer

If a campaign is set for the billing entity, it will automatically apply to all customers attached to it. However, you can override this at the customer level by either assigning a different dunning campaign or deactivating dunning for that specific customer.

Change from one campaign to another

If you change the default campaign or assign a different campaign to a customer, any ongoing dunning process will stop. The new campaign will take precedence and start from the beginning.

Dunning behaviour

Customer connected to a PSP

1. Automatic payment attempt: Lago will initiate a payment intent for the specified amount via the connected PSP.
2. Failed payment: If the payment fails, an email will be sent to the customer with a payment request and a URL to complete the payment (excluding GoCardless).
3. Successful payment: Upon success, the attached invoices will automatically reflect a “succeeded” payment status.

1. Automatic payment attempt: Lago will initiate a payment intent for the specified amount via the connected PSP.
2. Failed payment: If the payment fails, an email will be sent to the customer with a payment request and a URL to complete the payment (excluding GoCardless).
3. Successful payment: Upon success, the attached invoices will automatically reflect a “succeeded” payment status.

1. Payment request email: An email will be sent to the customer requesting payment for the overdue balance.
2. Manual update: Once the payment is received, you must manually update the payment status of the relevant invoices

Edit a dunning campaign

You can edit all details of a dunning campaign, but note that changes may directly impact customers linked to the campaign and could trigger new dunning attempts.

Delete a dunning campaign

Deleting a dunning campaign will immediately stop the current campaign for all associated customers, and no further dunning attempts will be made. If the deleted campaign is not the default, customers linked to it will revert to the billing entity’s settings and may be enrolled in the default dunning campaign, if one is set.

Assistant

Responses are generated using AI and may contain mistakes.