Rule

Failed renewals must trigger a defined dunning sequence, not ad hoc retries.

Why

Unstructured retries charge failed cards repeatedly and create angry users. No retries at all lose recoverable revenue.

Must

• Retry failed renewals at defined intervals (e.g. days 1, 3, 7, 14).
• Send payment-update email after first failure.
• Move subscription to past_due immediately on first renewal failure.
• Cancel after the retry window expires if no payment succeeds.

Should

• Allow users to update payment method directly from the dunning email.
• Offer a one-click resume after cancellation for a grace period.

Anti-patterns

• Retrying the same card more than once per day.
• Cancelling immediately without any retry attempts.
• Dunning email arriving days after the original failure.

Test Cases

• First failure triggers email within minutes and starts retry schedule.
• Payment update mid-dunning clears past_due and resumes billing.

Telemetry

• dunning_sequence_started
• dunning_email_sent
• dunning_recovered
• dunning_expired_to_cancelled