When an account is active, recurring charges continue to be processed. If you set an expiry date, the account closes automatically on the specified date. Recurring charges also stop if a transaction is processed against a customer account and declined—if this happens, the account is automatically placed On Hold. This is done so that merchants do not accrue declined transaction fees.
You can reactivate accounts that are Closed or On Hold, but accounts that have been in a Closed or On Hold state for a year with no activity, or two years with no activity for accounts on a yearly billing frequency—are deleted from the system.
You can control the number of declines before an account is placed on hold. By default, accounts are disabled after the first declined transaction (0 retry attempts).
- On the menu, click administration> account settings> order settings in the Online Member Area
- Scroll down to the Recurring Billing section.
- In the Decline Retries field, specify how you want to handle declined transactions. e.g. Retry Every 1 Day for 2 retry attempts. (See image below.)
- In the Retry Every text box, enter the amount of time before the system tries a new transaction.
- From the list, select the unit of time—Day, Week, Month, or Year.
- In the last text box, enter the number of retry attempts to reprocess declined transactions before the recurring billing feature is disabled. 0 (zero) automatically disables the account after the first declined transaction.
- To save your changes, click Update at the bottom of the page.
To keep your risks and transaction fees to a minimum, verify the customer's card data and contact details before reactivating an account.
- On the menu, click processing> recurring billing in the Online Member Area
- Use the search and sort fields to minimize the amount of items in the list.
- Find and click the account you are modifying. The Billing Profile page opens.
- Change the Billing State to Active or Closed. You can also change the Billing State to On Hold, however, it is recommended that you use this option to identify transactions automatically placed on hold due to declined credit cards.
- If you are reactivating an account and you do not want to charge for missed payments, clear the Process back payments check box.
- Click Update to save your changes.
By default, when you reactivate an account, back payments are processed to charge customers for any missed recurring billing fees. This could be substantial if the customer account was on hold or closed for a lengthy period of time. If you do not want to charge back payments when reactivating an account, clear the Process back payments check box on the customer’s billing profile.