Skip to main content

How Cancel Flows Handle Past Due Subscriptions

Customers with past due subscriptions may be treated differently when they go through the Cancel Flows.

Lucas Soares avatar
Written by Lucas Soares
Updated over 2 months ago

What Are Past Due Subscriptions?

A past due subscription occurs when a customer's payment method fails, and they haven't successfully updated their payment information. Different payment providers detect this state in various ways:

  • Stripe: Subscription status shows as past_due

  • Chargebee: Customer has outstanding dues (total_dues > 0)

  • Braintree: Subscription status shows as Past Due

  • Paddle: Subscription status shows as past_due or has outstanding dues

How Churnkey Detects Past Due Customers

Churnkey automatically identifies past due customers when they enter your Cancel Flow. You can target these customers specifically using Audience Segmentation:

  1. Go to your Cancel Flow settings

  2. Create a new audience segment

  3. Use the Subscription Status filter and select "Past Due"

  4. This will show Cancel Flows only to customers whose subscriptions are past due

Key Differences for Past Due Customers

1. Offers Work the Same Way

Good news: All your Cancel Flow offers work normally for past due customers:

  • Discount offers can be applied and may help reduce outstanding balances

  • Pause offers temporarily halt billing, giving customers time to resolve payment issues

  • Plan changes can move customers to more affordable plans

  • Trial extensions work if applicable to the subscription state

There are no restrictions preventing past due customers from accepting offers.

2. Cancellations Happen Immediately

Important: When past due customers cancel their subscriptions, they are cancelled immediately, regardless of your organization's cancellation settings.

  • Even if you have "Cancel at Period End" enabled, past due subscriptions cancel right away

  • This prevents issues with long-term subscriptions (like annual plans) that would otherwise wait until the end of their billing period

  • The customer's service access typically ends immediately

3. Outstanding Balances Remain

Critical to understand: Cancelling a past due subscription does not resolve outstanding payment obligations.

  • The customer still owes money for past invoices

  • You'll need separate processes to collect these outstanding amounts

  • Consider this when designing your Cancel Flow messaging

Best Practices for Past Due Cancel Flows

Create Dedicated Flows for Past Due Customers

Since past due customers have different needs than voluntary cancellers, consider creating separate Cancel Flow experiences:

  1. Segment your audience using "Subscription Status = Past Due"

  2. Focus on payment solutions rather than general satisfaction issues

  3. Offer payment-friendly solutions:

    • Moderate discounts (10-25%) to make payments more manageable

    • Shorter pause periods (1-2 months) for financial recovery

    • Plan downgrades to sustainable pricing

Set Clear Expectations

In your Cancel Flow messaging for past due customers:

  • ✅ Do explain: That cancellation doesn't erase outstanding balances

  • ✅ Do offer: Payment plan options or discount offers to resolve the debt

  • ✅ Do provide: Clear next steps for resolving payment issues

  • ❌ Don't imply: That cancellation solves their payment problem

Integration with Payment Recovery

For the best results, coordinate your Cancel Flow with your payment recovery efforts:

  • Before Cancel Flow: Leverage Payment Recovery so you can act on the failed payment

  • During Cancel Flow: Offer solutions that address payment concerns

Measuring Success

When analyzing Cancel Flow performance for past due customers:

  • Track separately: Past due vs. voluntary cancellation metrics

  • Monitor offer acceptance: Past due customers may have different acceptance rates

  • Follow post-offer payment: Success should include whether customers resolve their payment issues

Common Questions

Why do past due subscriptions cancel immediately?

This prevents situations where annual subscriptions would remain active for up to a year despite payment failures, creating larger outstanding balances.

Can I prevent past due customers from seeing certain offers?

Currently, all offers are available to past due customers. Use audience segmentation to create different flows.

What happens to failed payment recovery if a customer cancels?

Cancellation ends the subscription and stops any active email sequence in Payment Recovery.

Do paused past due subscriptions still owe money?

Yes, pausing stops future billing but doesn't resolve existing outstanding balances.

Need more help setting up Cancel Flows for past due customers? Contact our support team - we're here to help optimize your retention strategy!

Did this answer your question?