Transactional Templates

SaaS Dunning Email Templates

Failed payments cause 20-40% of SaaS churn. Most of it is recoverable.

Dunning emails are the unsung heroes of SaaS revenue. A well-timed sequence recovers 50-70% of failed payments that would otherwise become silent churn. These templates cover the full recovery flow from first notification to final warning.

Ready-to-Use Templates

Copy these templates and customize them for your needs. Each includes HTML and plain text versions.

First Payment Failure
Immediate notification after payment fails
Immediate payment failure notification
Subject Line

Your payment didn't go through — action needed

Preview Text

Quick update about your {{productName}} subscription.

Personalization Variables:
{{productName}}{{firstName}}{{lastFour}}{{amount}}{{planName}}{{updatePaymentUrl}}{{companyAddress}}
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Second Attempt
Day 3 — payment still failing after retry
Escalating urgency after first retry fails
Subject Line

Your {{productName}} payment is still failing

Preview Text

We've retried and it still didn't work.

Personalization Variables:
{{productName}}{{firstName}}{{lastFour}}{{amount}}{{updatePaymentUrl}}{{suspensionDate}}{{companyAddress}}
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Final Warning
Day 10-14 — account will be suspended
Final recovery attempt before account action
Subject Line

Final notice: your {{productName}} account will be suspended

Preview Text

Update your payment in the next {{daysLeft}} days.

Personalization Variables:
{{productName}}{{firstName}}{{amount}}{{daysLeft}}{{suspensionDate}}{{lossOne}}{{lossTwo}}{{lossThree}}{{updatePaymentUrl}}{{companyAddress}}
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Card Expiring Soon
Proactive notification before card expiration
Preventing payment failures before they happen
Subject Line

Your card ending in {{lastFour}} expires next month

Preview Text

Update it now to avoid service interruption.

Personalization Variables:
{{productName}}{{firstName}}{{lastFour}}{{expiryMonth}}{{updatePaymentUrl}}{{nextChargeDate}}{{companyAddress}}
Email Preview

Best Practices

Send the first email immediately — every hour of delay reduces recovery rates.

Include the specific card details and amount so customers know exactly what to fix.

Provide a direct link to update payment — don't make them navigate through settings.

Send a proactive card-expiring email before the payment even fails.

Keep access active during the grace period — don't lock out customers who intend to pay.

Common Mistakes

Using threatening language — these customers didn't choose to stop paying.

Not including the card details — 'your payment failed' without specifics is confusing.

Sending dunning emails from a no-reply address — customers may need to ask questions.

Too few emails — one notification isn't enough. Send 3-4 over your grace period.

Subject Line Examples

Timing & Performance

Best Days
Tuesday, Wednesday, Thursday
Best Times
9:00 AM, 2:00 PM
Open Rate
25-35%
Click Rate
3-5%

Personalization Tips

Prevention Beats Recovery

The most effective dunning email is the one you never have to send. A proactive card-expiring notification 30 days before expiration prevents the failure entirely and has higher action rates than any post-failure email.

Be Helpful, Not Threatening

Failed payment customers didn't choose to stop paying. They forgot to update a card. Treat them with the same respect as any other customer — provide clear information, a direct update link, and a grace period.

The Direct Link Is Everything

Every dunning email must include a one-click link to update payment. Making customers log in, navigate to settings, find billing, then update their card is a 50% drop-off at each step. One link. One action.

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Frequently Asked Questions

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