Dunning messages are communications that businesses send to customers to remind them about overdue payments or notify them of failed transactions. These messages are an important part of accounts receivable management and a common tool for businesses with recurring billing models, such as subscription services. Dunning messages benefit businesses by helping prevent customer churn, especially involuntary churn.

When executed thoughtfully and strategically, dunning messages can deliver a positive customer experience, ease dunning management, and create lasting brand affinity. Here’s how.

What’s in this article?

• When to send a dunning message
  
• What to include in a dunning message
  
• Dunning message examples
  
• Why dunning messages are important
  
• How to write dunning messages: A step-by-step guide
  
• Best practices for dunning message writing
  
• How Stripe Billing can help
  

When to send a dunning message

There are many situations in which a business might need to send dunning messages to customers, including:

• When a payment is overdue: This is the most common reason to send a dunning message. If a customer has not paid their bill by the due date, a reminder can prompt them to make the payment.

• For recurring subscription services: In subscription models, businesses can send dunning messages to customers whose recurring payment methods have failed. These messages can remind them to update their payment information to keep their accounts active.

• Before service suspension: In cases where nonpayment might lead to suspension of services, sending a dunning message beforehand can alert the customer to the impending action and give them a chance to rectify the situation.

• After a declined transaction: Payment transactions can be declined for reasons such as insufficient funds or card expiration. Sending a dunning message after a payment is declined informs the customer of the issue and gives them the opportunity to request an alternate payment method.

• For incomplete payment setups: Customers might start a payment process but not complete it. A dunning message can remind them to finish setting up their payment method.

• Periodic account updates: Dunning messages can remind customers to update their account details, which is especially useful if the payment method on file is close to expiring.

• To enforce updated terms: Dunning messages can be used to inform customers of changes to payment terms or policies, especially if they affect how or when payments are made.

What to include in a dunning message

Though the content of a dunning message will vary based on the situation, every dunning message should include certain key components:

• Identify the sender clearly: Make sure the message includes the name of the sender, either the name of your business or the billing department. This helps establish trust with customers.

• Customer information: Include the customer’s name and any relevant account information. This personalizes the message and lets the customer know it’s meant for them.

• Specific details of the issue: State the reason for the dunning message, whether it’s an overdue payment, a declined card, or a need for updated payment information. Provide specific details such as invoice numbers, dates, and amounts due.

• Clear call to action: Tell the customer exactly what they must do next, whether it’s making a payment, updating payment details, or contacting customer service for more information.

• Payment instructions: Provide detailed instructions on how to make the payment, including payment methods accepted and any online portals or links they can use.

• Due date for resolution: Specify a deadline by which the customer must take action. This creates a sense of urgency and helps resolve the issue more quickly.

• Consequences of nonaction: Inform the customer what will happen if they do not take the necessary action. This might include late fees, service suspension, or further collection efforts.

• Contact information: Give the customer a way to contact you if they have questions or need assistance, such as a customer service phone number or email address.

• A polite and respectful tone: Maintain a courteous and empathetic tone. This helps preserve a positive customer relationship, even in the face of payment issues.

• Privacy and security reminders: Remind customers not to send sensitive information such as credit card numbers via email, and direct them to safe methods of communication or payment.

Dunning message examples

The tone and content of a dunning message should shift as an issue progresses. Start friendly and grow more direct as deadlines approach. Below are three short examples showing how the same overdue payment might be addressed at different stages of the dunning cycle.

1. First reminder

This reminder would be sent within a few days of a failed payment.

Subject: We couldn't process your payment, [Customer Name]
Hi, [Customer Name],

We tried to charge your card on file for your [Product/Plan Name] subscription, but the payment didn't go through. This happens sometimes—no big deal!

You can update your payment details or retry the charge here: [Payment Link]

If you run into any trouble, just reply to this email or contact our support team at [support email/phone]. We're happy to help.

Thanks,
[Business Name] Billing Team

Why this works: The tone is light and reassuring rather than alarming, which matters for a first message, as many failed payments are simple issues like an expired card. Including a direct payment link removes friction, and the offer of support signals the business is on the customer's side.

2. Second reminder

This reminder would be sent one to two weeks after the first reminder, if unresolved.

Subject: Action needed: Your [Product/Plan Name] payment is still overdue

Hi, [Customer Name],

Our records show that your payment of [Amount] for invoice #[Invoice Number] is still outstanding. To avoid any interruption to your service, please update your payment method or complete your payment by [Due Date].

You can do this quickly through your account portal: [Payment Link]
If payment isn't received by the due date, your account may be subject to late fees or a temporary hold on services.

If you've already taken care of this, please disregard this notice. Otherwise, contact us at [support email/phone] with any questions.

Best,
[Business Name] Billing Team

Why this works: The subject line and opening line convey urgency without being punitive. Naming a specific invoice number and due date makes the request concrete, and stating the consequences gives the customer a clear reason to act now.

3. Final notice

This reminder would be sent shortly before service suspension.

Subject: Final notice: Your account will be suspended on [Date]

Dear [Customer Name],

This is a final notice regarding your unpaid balance of [Amount] for invoice #[Invoice Number], originally due on [Original Due Date].

If payment is not received by [Final Deadline], your access to [Product/Service Name] will be suspended. To avoid interruption, please complete your payment immediately: [Payment Link]

If you believe this notice was sent in error, please contact our billing team right away at [support email/phone].

We value your business and would like to help you avoid any disruption to your service.

Sincerely,
[Business Name] Billing Team

Why this works: The subject line states the stakes plainly, and the message gives an exact deadline and outcome, leaving no ambiguity about what happens next. Naming a specific escalation path gives the customer one last constructive way to engage before the account is suspended, which can help preserve the relationship.

Why dunning messages are important

When working to develop an exceptional customer experience and nurture brand loyalty, businesses can easily overlook transactional communications such as dunning messages. But those types of small components accumulate and shape a customer’s impression of a business. Here are reasons why dunning messages matter:

• Maintaining cash flow: Timely payments are key for the financial health of any business. Dunning messages help ensure receivables are collected promptly.

• Minimizing bad debt: By actively pursuing overdue payments through dunning messages, businesses can reduce the amount of bad debt they incur. This is important for maintaining a healthy balance sheet.

• Reducing involuntary churn: Many failed payments are caused by an expired card, insufficient funds, or a bank declining a routine charge. Dunning messages give customers a chance to fix these issues before they lose access to a service they actually want to keep.

• Identifying and resolving issues: Sometimes, nonpayment stems from misunderstandings or errors. Dunning messages open communication to identify and quickly resolve these issues, improving overall customer satisfaction.

• Providing legal protection: In case of a legal dispute over payments, a record of dunning messages can serve as evidence that your business took necessary steps to collect the debt.

How to write dunning messages: A step-by-step guide

Typically, dunning messages are not long, but they still require planning. Here’s a guide for writing impactful dunning messages:

1. Prepare the basics and structure the message

• Identify the customer: Make sure you have the correct customer details, including name and contact information.

• Review account details: Confirm the specifics of the overdue amount, including invoice number, total amount due, and due date.

• Structure your message around core elements: The message should have a direct subject line (for example, “Reminder: Invoice #12345 Overdue”), a polite and personal greeting, a brief statement of purpose, the specific account details, an offer of assistance, and a closing call to action with your contact information.

2. Choose the tone

• Professional and polite: Make sure your message has a courteous tone.

• Gradually escalate: If further reminders are necessary, gradually use a firmer tone but always remain respectful.

3. Consider the delivery method

• Email: Email is the most common method for sending dunning messages.

• Physical mail: Physical mail can be used as a follow-up if customers don’t respond to email.

• Phone call: In certain cases, a phone call can be more effective—and prompt quicker action—than email.

4. Timing and frequency

• Initial reminder: Send the initial reminder shortly after the payment becomes overdue.

• Follow-up reminders: Depending on the response, send additional reminders at regular intervals, such as weekly or biweekly.

5. Keep records

• Document communications: Keep a record of all correspondences for reference.
  

Best practices for dunning message writing

How and when you deliver a dunning message are just as important as its content. Here are some best practices for writing dunning messages:

Clarity and transparency

• State the issue clearly: Identify the overdue payment, including invoice number, amount due, and original due date.

• Give context: Briefly explain the origin of the invoice (e.g., recent purchase, subscription renewal) to jog the customer’s memory.

• Avoid ambiguity: Use concise, straightforward language to eliminate confusion.

Neutral tone and empathy

• Maintain professionalism: Use a neutral, respectful tone. Avoid accusatory or harsh language.

• Acknowledge realities: Recognize that nonpayment might not be intentional and might be the result of a change in the customer’s finances or a technical glitch.

• Show understanding: Use phrases such as “We understand that …” or “We’re here to help” to build trust and encourage cooperation.

Providing options and support

• Accept diverse payment methods: Cater to a variety of preferences with online portals, phone payments, and in-person options.

• Present flexible solutions: Consider accepting partial payments, extending deadlines, or finding alternative arrangements to meet the customer’s needs.

• Provide accessible instructions: Simplify the payment process with easy-to-follow steps for each method.

• Create support channels: Make it easy for the customer to reach out with questions or concerns.

Firmness without force

• Emphasize the importance of payment: Use respectful but direct language to remind the customer of their obligations.

• Focus on facts and consequences: Avoid emotional appeals or veiled threats. Inform customers about potential late fees or further consequences if payment isn’t received.

• Maintain a courteous tone: Treat the customer with respect, even in the face of an overdue payment.

Additional best practices

• Address the customer by name and reference their payment history or purchase details.

• Match your brand's voice with a friendly, polite tone.

• Start with a friendly reminder before escalating the tone.

• Use a subject line that accurately describes the message content.

• Keep the message concise.

• Provide multiple contact options for customer convenience.

• Consider using a professional dunning service for complex situations.

• Send a predunning message—a friendly reminder a few days before the due date.

• Space the messaging cadence out logically (e.g., before due date, on due date, seven days late, 30 days late) so customers aren't overwhelmed or not reminded often enough.

• Track metrics such as recovery rate, average days to payment, response rate, and customer retention after dunning.

• Distinguish soft dunning from hard dunning when drafting messages. Soft dunning uses gentle reminders for early-stage or low-risk cases; hard dunning applies firmer language and consequences for repeated or long-overdue nonpayment.

• Consider whether automated vs. manual dunning is best for you. Automation scales well for routine reminders and consistency, while manual outreach suits high-value accounts or sensitive situations needing a personal touch.

How Stripe Billing can help

Stripe Billing lets you bill and manage customers however you want—from simple recurring billing to usage-based billing and sales-negotiated contracts. Start accepting recurring payments globally in minutes—no code required—or build a custom integration using the API.

Stripe Billing can help you:

• Offer flexible pricing: Respond to user demand faster with flexible pricing models, including usage-based, tiered, flat-fee plus overage, and more. Support for coupons, free trials, prorations, and add-ons is built-in.

• Expand globally: Increase conversion by offering customers’ preferred payment methods. Stripe supports 125+ local payment methods and 130+ currencies.

• Increase revenue and reduce churn: Improve revenue capture and reduce involuntary churn with Smart Retries, recovery workflow automations, and data-driven insights to improve messages and customer responses. Stripe recovery tools helped users recover over $8.2 billion in revenue in 2025.

• Boost efficiency: Use Stripe’s modular tax, revenue reporting, and data tools to consolidate multiple revenue systems into one. Easily integrate with third-party software.

Learn more about Stripe Billing, or get started today.