Handle failed payments

Payment failures happen -- a member's bank account has insufficient funds, a mandate has expired, or bank details have changed. This guide walks you through identifying failures, using the dunning system to send reminders, and resolving outstanding invoices.

Step 1: Identify failed payments

There are several places where failed payments surface in Omoplata.

SEPA returns

When a SEPA debit is returned unpaid by the bank:

1. Upload the CAMT return file from your bank (see Process SEPA direct debits).
2. After processing, affected invoices move to pending retry status.
3. Related transactions are marked as failed.
4. A failed transaction fee is added to the member's account (if configured).

The dunning dashboard

1. Navigate to Finance > Dunning.
2. This page lists all members with overdue invoices.
3. For each member you can see:
   • Their name and contact information.
   • The number and total amount of overdue invoices.
   • The due dates of their oldest unpaid invoices.
   • The history of reminders that have already been sent.

Invoice list

1. Go to Finance > Invoices.
2. Filter by status: Overdue, Pending retry, or Pending.
3. Review the list for invoices that need attention.

Member profile warnings

A red credit card icon appears on the members list next to any member who has an active membership but no payment method on file. This often accompanies payment failures when the existing payment method was deactivated after a failed debit.

Step 2: Understand the dunning process

Dunning is the process of sending escalating payment reminders for overdue invoices. Omoplata supports four levels, each with its own fee and delivery method.

Reminder levels

Timing

• The first reminder is sent a configurable number of days after the invoice due date (default: 14 days).
• Subsequent reminders are sent at a configurable interval from when the previous reminder was actually sent (default: 14 days).
• The interval is measured from the actual send date, not from the invoice due date. If a reminder is sent late, the next one still follows the full interval.

Step 3: Enable automatic dunning (recommended)

Automatic dunning checks for overdue invoices daily and sends reminders based on your timing rules.

1. Go to your dunning settings.
2. Turn on the auto dunning enabled toggle.
3. Configure the timing:
   • First reminder days -- days after the invoice due date to send the first reminder (default: 14).
   • Reminder interval -- days between subsequent reminders (default: 14).
4. Configure the fee for each level.
5. Configure the delivery method for each level (email only, email + postal, or email + registered mail).
6. Save your settings.

Once enabled, Omoplata will automatically each day:

1. Find all overdue invoices.
2. Check whether enough time has passed since the last reminder (or since the due date for the first reminder).
3. Group invoices by payer.
4. Send reminders at the appropriate level.
5. Record the delivery status and increment each invoice's reminder step.

Step 4: Send manual reminders

Even with automatic dunning enabled, you can send reminders manually at any time.

1. Go to Finance > Dunning.
2. Find the member with overdue invoices.
3. Select the invoices to include in the reminder.
4. Click Send.
5. The reminder is sent at the appropriate level based on the highest step among the selected invoices.

Filtering the dunning list

The dunning page supports three views:

• All -- every member with overdue invoices.
• No reminder -- members who have not received any reminder yet.
• Sent -- members who have already been sent at least one reminder.

You can also search by member name, email, or invoice ID.

Step 5: Follow up with the member

After sending a reminder, you may need to follow up personally:

Update payment details

If the failure was caused by incorrect or expired bank details:

1. Go to the member's profile and open the Payment Methods tab.
2. Click Manage on the SEPA payment method.
3. Enter the updated IBAN and account holder name.
4. A new mandate is created with the current date. The old payment method is deactivated.
5. All active memberships are automatically switched to the new payment method.

Alternatively, instruct the member to update their payment details through the member portal if your settings allow self-service payment method changes.

Contact the member

Use the messaging feature or reach out via email or phone to discuss the situation. Common reasons for failed payments include:

• Insufficient funds -- the member may need a payment date change.
• Changed bank account -- the member needs to provide new IBAN details.
• Mandate issues -- the member may need to re-authorize the SEPA mandate.

Step 6: Resolve the invoice

Once the payment situation is resolved, update the invoice status:

The member pays

1. Go to Finance > Invoices and find the overdue invoice.
2. Change the status to Paid.
3. Transactions are completed and a payment record is created.

If the member pays via bank transfer and you have FinTS integration, the payment may be matched automatically. See Bank integration.

Retry SEPA collection

If the member updated their payment details and you want to collect via SEPA again:

1. Make sure the invoice status is pending or pending retry.
2. The invoice will be included in the next SEPA XML file you generate.
3. Follow the normal SEPA process (see Process SEPA direct debits).

Write off the invoice

If the invoice is uncollectible:

1. Change the status to Canceled (can be reactivated later) or Void (permanent).
2. The related transactions are updated accordingly.

Step 7: Escalate if needed

If dunning does not result in payment, the typical escalation path is:

1. Level 1 -- friendly email reminder. No fee.
2. Level 2 -- first formal reminder with a small late fee.
3. Level 3 -- second formal reminder sent by email and postal letter. Higher fee.
4. Level 4 -- final reminder sent by email and registered mail (Einschreiben). This provides legal proof of delivery.
5. Collection agency -- if the final reminder goes unanswered, you may hand the case to a collection agency (Inkasso). At least one formal reminder must have been sent and its deadline must have passed before escalating.

Monitoring failed payment trends

Keep an eye on payment health from several places:

• Dashboard -- the dashboard shows recent transactions and financial summaries.
• Members list -- the "At-Risk" and "Defaulted" filters help identify members with payment issues.
• Invoice statistics -- the monthly summary at the top of the invoices page shows outstanding amounts.
• Dunning dashboard -- a dedicated view of all overdue cases and their reminder history.

What to do next

• Process SEPA direct debits -- retry collection after resolving payment issues.
• Generate invoices -- understand the billing cycle.
• Manage memberships -- handle membership changes related to payment defaults.

For the full reference on the dunning system, see Dunning. For invoice management, see Invoices.