Technical
Retry Logic
Definition
Retry Logic automated rules for retrying failed transactions. Not all declines should be retried - and retry timing matters. Insufficient funds should be retried in a few days; expired card should prompt card update. Intelligent retry can recover 10-30% of soft declines. Important for subscription billing to reduce involuntary churn from temporary payment failures.
Related Terms
Decline Code
A standardized code returned when an authorization is declined, indicating the reason. Common codes: 05 (Do Not Honor), 51 (Insufficient Funds), 14 (Invalid Card), 41 (Lost Card). Understanding decline codes enables intelligent retry logic - insufficient funds may succeed later; lost card never will. Codes vary slightly between networks and processors.
Dunning
The process of recovering failed subscription payments through retries and customer communication. Includes automated retry attempts, customer notifications, and grace periods before cancellation. Effective dunning recovers 10-30% of failed payments. Optimize retry timing based on decline reason. Balance persistence with customer experience - over-aggressive dunning annoys customers.
Subscription Billing
A payment model where customers are charged on a recurring schedule (monthly, annually, etc.) for ongoing access to products or services. Requires card-on-file capability and careful attention to authorization rates, dunning, and involuntary churn. Card networks have specific rules for subscription billing including clear disclosure and easy cancellation. Higher risk classification due to chargeback patterns.
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