A payment reminder is communication a business sends to inform or remind a customer about an upcoming or overdue payment. Businesses typically use these reminders to increase the rate of on-time payments. They can be delivered through a variety of channels, such as email, text messages, letters, or automated phone calls.

Overdue payments are a common problem for businesses. In Western Europe, for example, nearly half of all B2B sales were affected by late payments in the second quarter of 2024. Payment reminders help businesses get paid. Below, we’ll cover what you should know about payment reminders, such as what to include, when to send them, and how Stripe can help automate the process.

What’s in this article?

• When should you send a payment reminder?
  
• What should a payment reminder include?
  
• How can Stripe help automate payment reminders?
  
• What are common mistakes to avoid with payment reminders?
  

When should you send a payment reminder?

The timing of a payment reminder depends on the nature of the payment and your relationship with the payer. Here are general guidelines about when to send them:

• Upcoming payment reminders: Send upcoming payment reminders 3–7 days before the due date. This gives the recipient sufficient time to prepare for the payment and avoid late fees or service disruptions. This type of reminder is ideal for subscription services, regular billing cycles, or other situations in which more notice is helpful.
  
• Due date reminders: Send due date reminders on the day that payment is due. These reminders politely nudge the payer to complete the transaction if they haven’t already. This type of reminder is ideal for ensuring payments are made on time without damaging relationships.
  
• Overdue payment reminders: Send overdue payment reminders 1–7 days after the due date. This is a gentle reminder made with the assumption that the deadline was unintentionally missed. Send a second reminder 7–14 days after the due date if the payment is still overdue, with a firmer tone that highlights any penalties or consequences. Send a final reminder 30 days or more after the due date if it’s still incomplete. This reminder should signal the potential for escalating to collections or taking legal action if the payment still hasn’t been received.
  

What should a payment reminder include?

A payment reminder should be direct, to the point, and easy to understand while maintaining a friendly and professional tone.

Start with a polite and friendly greeting to set a positive tone and avoid sounding too abrupt or pushy.

Example: “Hi, [Recipient’s Name], I hope this message finds you well!”

Next, remind them why you’re sending the note. Be sure to include:

• The amount due
  
• The invoice number or other point of reference
  
• When the payment is due (or how long it has been overdue)
  

Example: “This is just a quick reminder about Invoice #12345 for $250. It was due on March 15, and we haven’t seen the payment come through yet.”

After the invoice details, remind them how they can pay. You can include:

• Payment methods you accept
  
• Payment details they might need (e.g., a payment link, your bank details)
  
• Any step-by-step instructions
  

Example: “You can make the payment online here [link], or feel free to transfer it directly to our bank account (see details below).”

If the payment is late, politely mention any late fees or consequences to remind them of the stakes without being too harsh.

Example: “Just a heads-up: a $15 late fee will apply if we don’t receive payment by March 22.”

Encourage the recipient to reach out if there are issues or questions. This makes the reminder feel collaborative and in line with your business relationship rather than confrontational.

Example: “If there’s any issue or you need assistance with making the payment, please don’t hesitate to contact us.”

Bring your reminder to a close with a polite nudge that communicates your point while still making them feel like a valued customer and leaving room for questions.

Example: “Thanks so much for taking care of this! If you’ve already sent the payment, feel free to disregard this reminder. And if you need anything, just let me know!”

Full sample email

Subject: Friendly Reminder – Payment Due for Invoice #12345

Hi, [Recipient’s Name],

I hope this email finds you well. I wanted to kindly remind you about the outstanding payment for Invoice #12345, totaling $250, which was due on [date].

If you’ve already made this payment, please disregard this message. Otherwise, we would appreciate it if you could address this at your earliest convenience. You can make the payment using our secure portal here [link] or via bank transfer (details below).

Just a quick note: if we don’t receive payment by [date], a late fee of $15 might apply, as outlined in our payment terms.

If you have any questions or need assistance, please let us know. Thank you for your attention to this matter, and we appreciate your prompt response.

Best regards,
[Your Name]
[Your Contact Information]

How can Stripe help automate payment reminders?

Stripe makes automating payment reminders easier and reduces the effort required to pursue payments. Here’s how Stripe can help:

• Billing and subscription reminders: Stripe Billing is a valuable tool for subscription-based businesses. Before a payment is due, the system reminds customers of an upcoming charge so they’re not caught off guard. In the event of a failed payment, Stripe notifies customers and retries the payment at intervals you can customize. It can also automatically notify customers about overdue balances.
  
• Invoicing tools: With Stripe Invoicing, you can create invoices, and Stripe handles the follow-up. For example, Stripe can remind customers a week before an invoice is due, send a nudge the day the payment becomes overdue, or send periodic reminders after the due date.
  
• Payment links: With Stripe, you can generate unique payment links for one-off charges. These are especially useful for reminders, which you can embed in the emails Stripe sends or include in your follow-ups. Making it as easy as possible for customers to pay can increase on-time payments without creating more work for you.
  
• Managing failed payments: When payments fail, Stripe’s Smart Retries system optimizes when to try processing the transaction again. Customers are notified of the issue and prompted to update their payment method, and Stripe retries the charge at optimized intervals.
  
• Customer portals: Stripe’s self-service portal is a key innovation for businesses. Customers can log in, see their invoices, update their payment info, or pay any overdue balances without having to contact you for support. This makes it easier for customers to monitor and plan for payments and reduces the need for extra reminders.
  
• Software integration: Stripe integrates with tools such as Mailchimp, Zapier, or customer relationship management (CRM) systems. For example, you can use Zapier to trigger a custom email reminder when a Stripe payment is overdue or sync Stripe with your CRM to keep your sales and support teams in the loop.
  
• Advanced analytics: Stripe compiles the payment trends data you need to make informed decisions. You can see which customers frequently pay late, when most invoices are paid, and whether your system has any problems. For example, if you notice most overdue payments occur on weekends, you can adjust your reminder timing accordingly.
  
• Application programming interfaces (APIs) for total customization: If you need solutions custom-built to your specifications, Stripe’s APIs let you build custom workflows. Want to send reminders via text instead of email? No problem. Need a reminder system that adapts to specific customer behaviors? You can do that, too. Stripe’s API gives you control to design what works best for your business.
  

What are common mistakes to avoid with payment reminders?

Effective payment reminders need to strike the right tone and include all pertinent information. Making a mistake with a reminder can hurt your chances of getting paid or damage your relationship with the recipient. Here are common mistakes to avoid:

• Being too vague: If the reminder lacks important details, confused customers might set it aside without paying. Always include the invoice or reference number, the amount due, the payment deadline, and instructions for making the payment.
  
• Using an inappropriate tone: An overly harsh tone can alienate customers, while a too-friendly or passive tone might not convey enough urgency. Use polite but firm language. For example, “You need to pay immediately to avoid serious consequences” can sound too harsh, while “Hey, just a heads-up, you owe us some money!” can sound too casual.
  
• Waiting too long to send reminders: If you send reminders only after the payment is overdue, customers might forget about the invoice or assume it wasn’t a pressing concern. Send reminders a few days before the due date, on the due date, shortly after the payment is overdue (e.g., 1–7 days), and at escalating intervals if the payment is still outstanding.
  
• Overwhelming the recipient with too many messages: Reminders that are sent too frequently can create frustration and lead recipients to ignore or avoid your communications. Be thoughtful about how you time your reminders. Send a first overdue reminder a few days after the due date passes, follow up once or twice within a reasonable time frame (e.g., 7 and 14 days later), and save final notices for when all polite efforts have failed.
  
• Not offering help or solutions: If the reminder doesn’t acknowledge that there might be a logical explanation for why the recipient hasn’t paid, such as financial difficulties or confusion about how to pay, it can come across as rigid or unhelpful and leave the customer feeling unsupported. Instead, include an invitation to reach out. For example: “If you have any questions about this invoice or need assistance, feel free to contact us.”
  
• Ignoring branding and professionalism: If your reminder reads as informal or doesn’t match your business’s tone or style, it can seem less legitimate, confuse customers, or make them suspect it could be fraud. Use your logo, branded email templates, and a consistent tone in line with what customers have come to expect from your business.
  
• Failing to include payment options: Complicated or unclear payment processes lead to delays or nonpayment. Always include a direct payment link (if possible), instructions for how to use bank transfers or other methods, and your contact information for any questions.
  
• Not addressing late fees or consequences: If there are no consequences for delays, customers might not prioritize payment. To encourage prompt payment, politely outline late fees or potential actions.
  
• Not following up: If you send one reminder and don’t get in contact again, customers might forget about it. Create a follow-up schedule that escalates the tone and urgency over time.