Templates to build an efficient dunning email sequence

Dunning emails are a tool to retain customers that you lose unintentionally through overdue payment or cancelled subscriptions rather than a conscious decision. They’re automated emails that inform the customer of the overdue or failed payments to nudge them to take corrective measures. It helps with accounts receivable management. This article will talk about how to create the perfect dunning email sequence and the templates for emails in the sequence.

Creating a good dunning email sequence

Dunning is most successful when you send a sequence of emails at pre-determined intervals rather than a one-time communication. This sequence can be split into three phases—pre-dunning, dunning, and post-dunning.

Pre-dunning emails (prevention)

Purpose: To prevent issues before they occur. These often come in the form of payment reminder emails.

When to send: 

• 30 days before card expiry.

• 7 days before automatic renewal.

• Before large B2B invoices come due.

Content focus: 

• Friendly reminder.

• Anticipating issues.

• Clear “update payment” link.

Frequency: 1–2 emails.

Dunning emails (recovery)

Purpose: The primary purpose of dunning emails is to recover the lost revenue and gently nudge the users to take corrective action.

Email 1: Day 0 (payment fails)

The first dunning email is sent on the day of the payment failure as an immediate notification. It has the following qualities:

• A gentle notification.

• A friendly tone.

• No mention of consequences yet.

• Information on when payment will be retried or how to make a payment manually.

Email 2: Day 3 (second attempt)

The second email is sent after a reasonable time has passed to take corrective actions but the customer has failed to do so. It will have:

• A slight sense of urgency.

• A clear explanation of the issue.

• Encouragement to update the payment method at the earliest.

• Information on when the payment will be retried or how to make payment manually.

Email 3: Day 7 (third attempt)

This email is sent to be a stronger warning after no response for the first two attempts. It will have:

• A higher sense of urgency.

• An explanation of the consequence of no payment.

• A reminder of the deadline for the payment.

• Information on when payment will be retried or how to make a payment manually.

Email 4: Day 14 (final notice)

This email will serve as the last attempt and final notice to the customer before service disruption. It will have:

• Firm language.

• Notification of the final service disruption date.

• Information on when the payment will be retried or how to make it manually.

Post-dunning emails (after suspension or pause)

When to send:

• The account has been paused.

• The subscription has expired due to non-payment.

• The invoice is more than 30–60 days overdue.

Content focus: 

• Status update.

• Steps to restore access.

• Warm invitation to return.

• Option to speak with support or finance.

Frequency: 1–2 emails over 1–2 weeks

Dunning email templates

Email 1: Immediately after payment failure

Subject: Payment failed for your {service name} subscription

Hi {Customer Name},

We attempted to process the subscription renewal for your [Plan] plan today, but the payment has failed. This could be due to an expired card, insufficient funds, or a temporary bank decline.

To ensure uninterrupted access to your account and features, please take a moment to update your payment information or retry the payment:

{Update Payment}

We’ll retry the payment automatically once your details are updated or after {number of days} days. If you believe this was an error or have any questions, feel free to reply—our team is here to help.

Thank you,
Team {company}

Email 2: 3 days after failure

Subject: [Action needed] Payment failed: Update payment information

Hi {Customer Name},

This is a reminder that we’re still unable to process the payment for your {service} subscription. Your account is currently within the grace period and updated billing information is required to ensure continued access.

Please update your billing information or retry payment before {deadline} to avoid interruption of service:

{Resolve payment}

If you’re experiencing an issue with your bank or you need assistance with your account, drop an email to {support email}.

Best regards,
Team {company}

Email 3: 7 days after failure

Subject: Urgent: {service} payment overdue

Hi {Customer Name},

This letter is regarding the outstanding payment for your {service} subscription. It has now been 7 days since our initial notice, and despite multiple attempts, we have not yet been able to process the renewal successfully.

Failure to complete payment before {deadline} will lead to a temporary suspension of your {service} account.

Please update your payment information or retry payment at the earliest to avoid access loss.

{Make a payment now}

If you require additional time, wish to discuss alternative billing arrangements, or need clarification regarding the failed payment, please contact us at {support email}.

Sincerely,
Team {company}

Email 4: Final notice 14 days after failure

Subject: Final notice: Account suspension schedule for {deadline}

Hi {customer name},

This is the final notice regarding the unresolved payment for your {service} subscription. Despite previous reminders, we have not been able to process the payment over the past 14 days.

Your account is scheduled to be temporarily suspended on {deadline}. Once suspended, your team may lose access to key features and stored data until billing is updated.

You can prevent any service interruption by updating your payment details here before {deadline}:

{Resolve payment issue}

If there’s anything we can assist with—like billing questions, alternative payment methods, or an extension—please reach out to us at {support email} before the pause date. We’re happy to help find a solution that works for you.

Thank you,
Team {company}

Conclusion

Dunning emails are important tools in churn reduction and revenue recovery strategy for any business. It’s most effective when a good dunning email sequence with the right trigger, good content, and perfect timing is employed. By implementing a good dunning email sequence, you can ensure that you retain customers that you spent time and resource acquiring.