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What happens if a recurring payment bounces?

If I set up a recurring payment with a card on file, I believe that payments will automatically be processed at 10am on the scheduled invoice date. If, during one of these transactions, the card declines for whatever reason (insufficient funds, for example), what happens next?

I assume that I will be notified somehow, and I'll need to follow up with the customer, but will there be an associated fee? Will square attempt to process the payment again? Will I need to cancel the entire invoice series, and start a new one?

 

Apologies if this information is posted elsewhere, but I wasn't able to find it.

 

Thanks in advance.

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Hey @Kickstarters

 

Thanks for getting in touch! You can find a bit more information about this in our guide to Recurring Invoices. I've outlined the relevant bits for you below:

 

What if my customer’s transaction is declined?

 

When you set up a new series of recurring payments, you’ll be given the choice to allow your customer to save their credit card on file. The customer will see their first invoice from the recurring series with a checkbox to save their card payment details. Just like all other invoices, your customer is allowed several attempts to enter the right payment information (card number, expiration date). If the card fails after those attempts, both you and your customer are notified by email that that particular transaction failed. The recurring series stays intact and will continue to send the next instances in that series, but you will have to re-send a single invoice to ensure that you still receive payment for the invoice instance that failed.

 

 

What if my customer’s credit card is out-of-date?

 

When you have a recurring series that includes a saved CoF payment, the credit card on file at some point in the series your customer’s card may go past its expiration date or fails for another reason. In that instance, Square automatically falls back to sending an invoice where your customer will be prompted to enter their new card information. Both the you and your customer will be notified that the card on file wasn’t charged, and the customer can still pay the regular invoice through the normal invoice payment webpage (where they will also have the option to save a new card on file, too). In the case that a new/different card is saved on file, you will receive an email notifying you that the invoice has been paid with an updated CoF.

 

Hope this helps, let me know if you have any questions!

Seamus
Square, Australia
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Admin

Best Answer

Hey @Kickstarters

 

Thanks for getting in touch! You can find a bit more information about this in our guide to Recurring Invoices. I've outlined the relevant bits for you below:

 

What if my customer’s transaction is declined?

 

When you set up a new series of recurring payments, you’ll be given the choice to allow your customer to save their credit card on file. The customer will see their first invoice from the recurring series with a checkbox to save their card payment details. Just like all other invoices, your customer is allowed several attempts to enter the right payment information (card number, expiration date). If the card fails after those attempts, both you and your customer are notified by email that that particular transaction failed. The recurring series stays intact and will continue to send the next instances in that series, but you will have to re-send a single invoice to ensure that you still receive payment for the invoice instance that failed.

 

 

What if my customer’s credit card is out-of-date?

 

When you have a recurring series that includes a saved CoF payment, the credit card on file at some point in the series your customer’s card may go past its expiration date or fails for another reason. In that instance, Square automatically falls back to sending an invoice where your customer will be prompted to enter their new card information. Both the you and your customer will be notified that the card on file wasn’t charged, and the customer can still pay the regular invoice through the normal invoice payment webpage (where they will also have the option to save a new card on file, too). In the case that a new/different card is saved on file, you will receive an email notifying you that the invoice has been paid with an updated CoF.

 

Hope this helps, let me know if you have any questions!

Seamus
Square, Australia
Sign in and click Mark as Best Answer if my reply answers your question.
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Thanks @Seamus. Much appreciated.

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Does a failed or declined payment show up in the transactions for the date specified in the search options. (So I can follow up with customers on recurring payments easily by just looking at my daily transactions instead of having to scour my email?)

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Hey @Zane1,

 

Declined transactions won't show up in your general Transactions, but will appear in your Transaction Status Report as well as on the declined invoice itself!

 

If you're seeing regular declines then the status report may be the best place to look!

Seamus
Square, Australia
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