Back to Blog
Payment Recovery
15 min read

Pre-Dunning Strategy 2025: Prevent Failed Payments Proactively

Pre-dunning to prevent payment failures: card expiry alerts, account updater, and proactive notifications. Reduce failures by 30-50%.

May 12, 2025By David Kim

The best payment recovery strategy is preventing failures in the first place. Pre-dunning can reduce payment failures by 30-50%.

What is Pre-Dunning

Pre-dunning proactively addresses payment issues before they cause failures. This includes card expiry alerts, balance notifications, and payment method updates.

Card Expiry Management

Alert customers 30, 14, and 7 days before card expiry. Make updating easy with one-click links. Use account updater services to automatically refresh card details.

Proactive Communication

Notify customers of upcoming charges, especially for annual renewals or variable amounts. Give them time to ensure funds are available.

Payment Method Diversification

Encourage backup payment methods. ACH/bank transfers have lower failure rates than cards. Multiple methods provide fallback options.

Frequently Asked Questions

How effective is pre-dunning?

Pre-dunning can reduce payment failures by 30-50%. The ROI is typically 10-20x the cost of implementation.

When should I start pre-dunning communications?

Start 30 days before expiry or renewal. This gives customers ample time to update payment methods without feeling rushed.

Key Takeaways

Pre-dunning is more effective and customer-friendly than reactive dunning. Invest in prevention to reduce churn and improve customer experience.

Transform Your Revenue Analytics

Get ML-powered insights for better business decisions

Related Articles