Handling a failed direct debit or chargeback

A direct debit can fail, and a successful collection can later be reversed (a chargeback). You see both in the membership fee administration, and the member is notified automatically.

The difference

• Failed — the collection did not go through. Usually insufficient funds, a closed account or a missing mandate.
• Chargeback — the collection did go through, but was then reversed by the account holder or the bank. So the money is gone again.

In both cases the fee is effectively outstanding again.

Step 1: Find the cause

1. Go to Finance → Membership fees.
2. Open the instalment with the status failed.
3. Check whether the member's mandate is still active. If it is missing or expired, that is almost always the cause.

Step 2: Choose a solution

• Mandate missing — have the member activate a mandate again. The system automatically sends an invitation for this.
• Temporary problem, such as funds — set the instalment to retry once the member says it is resolved.
• The member prefers to pay themselves — in the subscription list, click Change and choose The member chooses with iDEAL under Currently, or Outside the app.
• The member does not sign — after three reminders 4planning stops sending anything. These members are listed with their name and outstanding amount in the red notice at the top of the page. Get in touch, or put them on a payment link via Change.
• Paid outside the system — mark the instalment as paid manually.

What the member sees

For a failed payment or a chargeback the member is always notified, with a payment link to pay after all. That payment link also works if the mandate is still valid: the member then pays that one instalment by iDEAL, and the following instalments simply go through direct debit again. Members cannot switch these notifications off — that is deliberate, because an outstanding payment is involved.

Frequently asked questions

• Is a failed direct debit retried automatically? No, not by itself. You reopen it yourself, or the member pays through the payment link in the email.
• Do I get the service charge back on a chargeback? The service charge belongs to the payment attempt. If the member pays again afterwards, that new payment carries a service charge again.
• A member keeps charging back. Switch the subscription to Outside the app or to iDEAL, so the payment has to come from the member, and agree on a deadline.