Failed Payments

Learn how to identify, understand, and resolve failed payment attempts in Toolfy.

Overview

Payment failures happen for various reasons, from insufficient funds to expired cards. Understanding why payments fail and how to resolve them helps you get paid faster and maintain good customer relationships.

Common Failure Reasons

Card-Related Issues

• Insufficient funds: Not enough money in account
• Expired card: Card past expiration date
• Incorrect details: Wrong card number, CVV, or expiry
• Card blocked: Bank has blocked the card
• Daily limit exceeded: Customer hit their daily spending limit

Bank-Related Issues

• Bank declined: Bank rejected the transaction
• Fraud prevention: Triggered bank's fraud filters
• Geographic restrictions: Card not authorized for your location
• Account closed: Bank account associated with card is closed
• Processing error: Technical issue at the bank

Technical Issues

• Network timeout: Connection lost during processing
• Processing error: Temporary system issue
• Invalid request: Malformed payment data
• Gateway error: Problem with payment processor

Identifying Failed Payments

In Toolfy Dashboard

• Invoice status: Shows "Payment Failed" in red
• Payment attempts: History of all attempts
• Failure reason: Specific error message
• Retry options: Quick actions to resend or retry

Automatic Notifications

• Email alerts: You receive failure notifications
• Customer notification: Customer gets failure message
• Dashboard badge: Failed payment counter
• Daily summary: Email digest of all failures

Resolving Failed Payments

Immediate Actions

1. Review the error: Check specific failure reason
2. Contact customer: Call or email about the issue
3. Explain the problem: Help customer understand what went wrong
4. Guide resolution: Walk them through fixing the issue
5. Retry payment: Process payment again once resolved

Customer Communication Script

Resolution Strategies by Error Type

Insufficient Funds

• Ask about timing: "When would be a good time to retry?"
• Offer payment plan: Split into smaller amounts
• Alternative methods: Bank transfer or different card
• Schedule retry: Set up automatic retry in few days

Expired or Invalid Card

• Get new details: Updated card information
• Different card: Use another payment method
• Update on file: Save new card for future
• Verify information: Double-check all details

Fraud Prevention/Bank Block

• Contact bank: Customer should call their bank
• Authorize payment: Bank may need to approve
• Retry later: Try again after bank contact
• Alternative method: Use different payment type

Technical Issues

• Try again: Simple retry often works
• Different browser: Technical processing issues
• Clear cache: Browser storage problems
• Contact support: If technical issues persist

Retry Payment Process

Manual Retry

1. Open the failed invoice
2. Click "Retry Payment" button
3. Update payment details if needed
4. Process payment again
5. Monitor for success/failure

Send New Payment Link

1. Go to the invoice
2. Click "Send Payment Link"
3. Choose email or SMS delivery
4. Customer gets fresh payment page
5. They can enter new payment details

Automatic Retry Settings

Smart Retry Logic

• Retry schedule: 1 day, 3 days, 7 days
• Error-specific: Different schedules for different errors
• Maximum attempts: Stop after 3 failed retries
• Customer notification: Email before each retry

Configuration Options

Set up at Settings → Payments → Failed Payment Handling

• Enable auto-retry: Turn on/off automatic retries
• Retry intervals: How long to wait between attempts
• Max attempts: How many times to try
• Error exclusions: Which errors to never retry

Customer Self-Service

Payment Portal Features

• Error messaging: Clear explanation of failure
• Alternative methods: Different payment options
• Update details: Change card information
• Retry button: Customer can try again immediately

Helping Customers

• Clear instructions: Step-by-step resolution guide
• Contact options: Phone number for help
• FAQ section: Common issues and solutions
• Live chat: Real-time support if available

Prevention Strategies

Card Information Management

• Regular updates: Remind customers to update expired cards
• Multiple payment methods: Store backup cards
• Expiry notifications: Alert before cards expire
• Verification process: Test cards when first added

Payment Timing

• Business hours processing: Better bank approval rates
• Avoid weekends: Higher decline rates on weekends
• End of month timing: Be aware of customer cash flow cycles
• Holiday considerations: Adjust payment schedules

Tracking and Analytics

Failure Rate Monitoring

• Overall decline rate: Percentage of failed payments
• Error type breakdown: Most common failure reasons
• Time-based trends: Patterns by day/hour
• Customer patterns: Repeat failure customers

Key Metrics

• Initial success rate: First-attempt approval rate
• Retry success rate: Success rate of retry attempts
• Resolution time: How long to resolve failures
• Customer contact rate: How often you need to call

When to Write Off

Write-Off Criteria

• Multiple attempts: 3+ failed retry attempts
• Customer unresponsive: No response after 2 weeks
• Invalid contact info: Can't reach customer
• Dispute or complaint: Customer refuses to pay

Before Writing Off

• Final notice: Last attempt to collect
• Payment plan offer: Flexible payment terms
• Partial payment: Accept reduced amount
• Collection agency: Consider third-party collection

Legal and Compliance

Payment Card Industry (PCI)

• Secure processing: All payments encrypted
• No storage: Don't store card details insecurely
• Compliance tools: Use PCI-compliant payment forms
• Regular audits: Maintain compliance certifications

Consumer Protection

• Clear terms: Payment terms visible to customers
• Fair practices: Reasonable retry policies
• Dispute handling: Process for payment disputes
• Privacy protection: Secure customer payment data

Troubleshooting Tools

Stripe Dashboard

• Payment logs: Detailed transaction history
• Decline codes: Specific bank response codes
• Radar insights: Fraud detection information
• Analytics: Payment performance metrics

Support Resources

• Stripe support: Technical payment issues
• Bank relationships: Direct contact with banks
• Industry forums: Peer support and advice
• Documentation: Updated error code references