‘Past due’ refers to a situation where a customer has failed to make a payment for their subscription service within the expected timeframe. This can result in the suspension or termination of the service until the payment is made. For businesses using the subscription platforms, past due payments can have significant financial implications, leading to revenue loss and increased operational costs related to payment collection efforts.
To manage past due situations, subscription management software provide several key features. They manage such situations by sending out automated payment reminders to customers who have missed a payment, increasing the likelihood of the payment being made promptly.
A SaaS subscription management software can use payment retry logic to automatically retry failed payments, reducing the need for manual intervention by the business. They can offer grace periods to customers who have missed a payment, allowing them to catch up without service interruption.
Subscription management platforms also offers flexible payment plans, such as monthly or annual billing cycles, to reduce the likelihood of customers becoming past due.