What Happens When Payment Fails

What Happens When Payment Fails

Payments can fail for various reasons. This article explains what happens and how to reactivate your subscription.

Payment Failure Process

Timeline: From Failure to Cancellation

Day 1 - First Payment Attempt:

00:00: Stripe creates invoice
00:05: First charge to default payment method
→ FAILURE
00:10: Email notification sent
Status: 'past_due'

Day 1-7 - Automatic Retries:

Stripe tries automatically (Smart Retry):
- Day 1: After 3 hours
- Day 2: After 12 hours
- Day 4: After 24 hours
- Day 7: Final attempt

If backup card available:
→ Automatic switch after 2nd failure

Day 7-30 - Grace Period:

Display remains ACTIVE (grace period)
Status: 'past_due'
Email reminders: Day 7, 14, 21, 28
Portal warning: "Payment overdue"

Day 30 - Subscription Cancelled:

If still unpaid:
→ Subscription status: 'cancelled'
→ Display DEACTIVATED
→ Portal access: Billing section only
→ Final email: Cancellation confirmed

Common Error Causes

1. Insufficient Funds

Error message:

Your payment of €149.00 failed.
Reason: Insufficient funds

Please update your payment method or add funds
to your account.

Causes:

Solution:

1. Check account balance
2. Add funds OR
3. Add different payment method
4. Stripe will automatically retry

2. Card Expired

Error message:

Your payment failed.
Reason: Card expired (Expiry: 12/2023)

Please update your payment method.

Solution:

1. Open billing portal
2. Click "Manage Subscription"
3. Stripe Portal: Add new card
4. Check expiration date
5. Set as default
6. Remove old card

3. Card Declined

Error message:

Your payment failed.
Reason: Card declined by issuer

Please contact your bank or use a different
payment method.

Possible reasons:

Solution:

1. Call bank: +43 XXX XXXXXX
2. Confirm payment as legitimate
3. Enable foreign payments (if needed)
4. Enable online payments
5. Stripe will auto-retry in 3 hours

4. 3D Secure Authentication Failed

Error message:

Your payment failed.
Reason: Authentication required but not completed

Please try again and complete the authentication.

Causes:

Solution:

1. Billing Portal → Retry Payment
2. 3DS popup opens
3. Confirm SMS code/app push
4. Complete within 5 minutes

5. Incorrect CVC

Error message:

Your payment failed.
Reason: Incorrect CVC

Please check your card details.

Solution:

1. Check CVC code (3 digits on back)
2. For AMEX: 4 digits on front
3. Update payment method
4. Enter CVC correctly

Subscription Status: 'past_due'

What Does 'past_due' Mean?

Definition: Payment overdue, but subscription still active

Effects:

✅ Display: Still working
✅ Portal access: Full access
✅ Features: All available
⚠️ Warning: Banner in portal
⚠️ Restriction: No plan changes possible

Portal Warning

In billing section:

┌────────────────────────────────────────┐
│  ⚠️ Payment Overdue                    │
│                                        │
│  Your payment of €149.00 failed on     │
│  January 1, 2024.                      │
│                                        │
│  Reason: Insufficient funds            │
│                                        │
│  Please update your payment method     │
│  to avoid service interruption.        │
│                                        │
│  Next retry: January 2, 3:00 AM       │
│                                        │
│  [Update Payment Method] [Retry Now]   │
└────────────────────────────────────────┘

Email Notifications

Immediately after failure:

Subject: Payment Failed - Action Required

Dear [Hotel Name],

Your payment of €149.00 for LobbyFlight Pro
subscription failed on January 1, 2024.

Reason: Card declined by issuer

We'll automatically retry in 3 hours. If the
payment continues to fail, your subscription
may be cancelled after 30 days.

Please update your payment method:
[Update Payment Method]

Questions? Reply to this email.

Best regards,
LobbyFlight Billing Team

Reminders:

Manual Payment Retry

"Retry Payment" Button

In billing portal:

1. Status: Payment Overdue
2. Button visible: [Retry Payment Now]
3. Click
4. Stripe tries immediately
5. If successful: Status → 'active'
6. If fails again: Error reason displayed

Before Manual Retry

Checklist:

☐ Payment method updated?
☐ Sufficient funds available?
☐ Bank informed about payment?
☐ 3D Secure ready (phone at hand)?
☐ Popup blocker disabled?

After Successful Retry

Confirmation:

✅ Payment successful!

Your subscription is now active.
Amount charged: €149.00
Payment method: Visa ****1234

Thank you!

Status updates:

Grace Period

30-Day Grace

What is grace period?:

Time during which service remains active despite payment failure

Duration: 30 days from payment failure

During grace period:

✅ Display fully functional
✅ All features available
✅ Portal access
✅ Settings changeable
⚠️ Upgrade/downgrade locked
⚠️ Warnings in portal

After grace period (Day 30):

❌ Display deactivated
❌ Portal: Billing section only
❌ Features locked
❌ Subscription cancelled

Recommendation: Don't wait until day 30!

Why Grace Period?

Benefits for you:

Our expectation:

Reactivating Subscription

After Cancellation (Day 30+)

When subscription is cancelled:

Status: 'cancelled'
Display: Offline
Message: "Your subscription has been cancelled
         due to payment failure."

Reactivation:

1. Open billing portal
2. Warning: "Subscription cancelled"
3. Button: [Reactivate Subscription]
4. Check/update payment method
5. Select plan (same as before)
6. Complete payment
7. Immediately active again

Important: Settings remain preserved

Only new: Billing date is reset

Data After Cancellation

Retention:

0-90 days: All data saved
→ Reactivation possible anytime
→ Full restoration

90-180 days: Data archived
→ Reactivation possible but slower
→ Contact support needed

180+ days: Data deleted
→ Re-registration required
→ Settings lost

Payment Method During 'past_due'

Adding New Card

Process:

1. Possible despite 'past_due'
2. Billing Portal → Manage Subscription
3. Stripe Portal opens
4. Add new payment method
5. Automatic retry in 5 minutes
6. On success: Status → 'active'

Recommendation: Update immediately after failure

SEPA Direct Debit During 'past_due'

Problem: SEPA takes 5-7 days

1. Add SEPA as payment method
2. Accept mandate
3. Stripe initiates debit
4. 5-7 business day wait
5. Subscription remains 'past_due' meanwhile
6. After successful debit: 'active'

Better option: Credit card for immediate reactivation

Backup Payment Method

Automatic Fallback

When backup card is stored:

Payment 1: Primary card (Visa ****1234) → ERROR
Wait: 1 hour
Payment 2: Primary card again → ERROR
Automatic: Switch to backup (Mastercard ****5678)
Payment 3: Backup card → SUCCESS
→ Subscription remains 'active'
→ No warning email (since successful)

Advantage: Minimal interruption

Setup:

1. Open Stripe portal
2. Add primary card
3. Click "+ Add payment method" again
4. Add backup card
5. Do NOT set as default
6. Done - Stripe uses automatically

Contacting Support

When to Contact Support?

Contact immediately for:

Not needed for:

Contact Information

Email: info@lobbyflight.com

Subject: Payment Failure - Hotel [Name]
Content:
- Hotel ID
- Error message (screenshot)
- Steps already taken
- Desired solution

Phone: +43 650 753 1811

Monday-Friday: 9:00-18:00 CET

Response time:

Frequently Asked Questions

Will my display be deactivated immediately on payment failure?

No. 30-day grace period. Display remains active while Stripe attempts automatic retries.

How many times does Stripe automatically retry?

Up to 4 times over 7 days (smart retry algorithm at different times of day).

Can I manually retry?

Yes. In billing portal: "Retry Payment Now" button.

What happens to my settings after cancellation?

Saved for 90 days. On reactivation: Full restoration.

Do I get warning before deactivation?

Yes. Emails on Day 1, 7, 14, 21, 28. Final warning 2 days before cancellation.

Can I upgrade during 'past_due'?

No. First settle payment, then plan changes possible.

Prevention

Best Practices

Checklist:

☐ Store backup payment method
☐ Note card expiration date in calendar
☐ Sufficient funds before billing date
☐ Inform bank about recurring payments
☐ 3D Secure enabled and phone ready
☐ Email notifications enabled

Calendar reminder:

Title: LobbyFlight Billing
Date: [Your billing date]
Recurrence: Monthly
Reminder: 2 days before
Note: Check account balance €149

Next Steps

Payment failed?

Support

Payment problems?