Purpose

A failure management scheme (also called a dunning workflow) defines which actions are taken automatically when a transaction collection fails. This allows support and operations teams to handle failed payments consistently, without having to manually follow up each transaction.

Configuration steps

1. Navigate to Settings > Profiles.
2. Select the profile you want to configure.
3. Open the Payments tab.
4. In the Failed payments section, configure actions for the following failure types:

To set up a failure management scheme, take the following steps:

• Go to Settings > Profiles and select the profile for which you want to set up a dunning workflow.
• Go to the Payments tab.
• In the section Failed payments, you can define the actions to be taken for three major types of transaction failures:
  • Insufficient funds (soft failure): transactions that failed because of insufficient funds on the debtor's bank account.
  • Customer refuses (hard failure): transactions that are refused by the customer.
  • Failure at bank (technical failure): transactions that failed because of other issues.

A full overview of error codes for failed collections is available in the List of Direct Debit R-Codes.

Adding a failed payments action step

To add an action:

1. Click Add in the Failed payments section.
   
2. Select the desired Action from the dropdown list.
3. Configure the action settings.
4. (Optional) Add additional actions to create a multi-step workflow.

Available failed payments action steps

Try again

Retry the failed payment transaction

Options

• Delay: Retry the collection again after the defined number of days.
• At the beginning of next month: Retry the collection again on the first day of the next month.
• Delay + beginning of next month: Retry the collection again on the first day of the next month plus the delay.

Allow payment alternative

Offer the customer an alternative way to pay (payment link or transfer).

Notification channels

• Email
• SMS
• Email + SMS

Email options

• Reminder with payment link: Email with a payment link.
• Reminder only via SMS: No email, only an SMS with payment link.
• Payment failure with transfer info: Email containing wire transfer instructions
  (Emails tab → Transactions → Payment failure w/ transfer).

Choose reminder
Select one of the four predefined reminder templates:
Emails tab → Transactions → Payment failure w/link (1–4).

Grace period:
Number of days (default: 14) during which the payment link remains valid.
If unpaid after the grace period, the transaction is moved to Unsettled menu or the next failed payment step is triggered.

Admin charges
Add administrative charges on top of the amount due.

• Charges apply only to the payment link or transfer info
• The original transaction amount is not modified
• Charges are cumulative across failed payment steps

SMS options
Available when SMS option is enabled.

• Delay SMS with: Send the SMS after a defined number of days.
  A task (Dunning reminder via SMS) has been added to the mandate which can be executed or deleted manually if there is need to.
• SMS: Choose one of the four SMS message types:
  (SMS tab → Failed payment with link (1–4)).
  Only possible when you selected to send only via sms under 'Email'. Otherwise, the same reminder (1-4) is used as the one you selected under 'Choose reminder'.

Send registered mail
Send a failed payment message via a registered mail.

• Includes proof of delivery and status updates.
• Requires a registered mail integration, contact our support.

Change status of mandate

Update the present mandate status.

Options

• Choose whether you want to Suspend or Cancel the document.
• Choose whether you want to exclude account for future mandates
  • Prevents the bank account from being reused.
  • Requires the Premium package.

The next failed payment step (if any) is immediately executed after this one.

Notify

Send a payment failure notification.

• Email template: Emails tab → Transactions → Notify (Payment failure).
• If another payment step exists, it is executed immediately after the notification.

Send official letter (Wik Letter)

Send a formal, personalized letter.

Configuration options

• Grace period: The allowed number of days to complete the payment
• Admin charges: Add administrative charges to the transaction
• Use payment link: Create a payment link
• Send also by SMS: Send additional SMS defined under the SMS tab > failed payment #1
• Send registered email: Send the WIK also via your registered mail integration.
• Delay sms with: Sends the sms only after the selected number of daysOptional delay (must be shorter than the grace period).
• Keep the actual document
  • Stores a copy (PDF) of the letter in Twikey
  • If an email is to be sent out, the PDF will always be included.
  • Additional charges may apply, contact our support for more information.
• Notify: The WIK email is always sent to the (end-) customer but a copy can be sent to the merchant.
  You can customize or disable the email via the Emails tab -> Transactions -> Wik.

Offer signing an alternative mandate

Send an email to the customer to sign a new mandate.
Email template: Emails tab → Transactions → Alternative profile.

Move mandate to other profile

Move the mandate to another profile of the same type (CORE, B2B, etc.).

Important :

• The target profile must contain the same required attributes.
• This action must be the last step in the dunning workflow.
• After moving the mandate, no further dunning actions are executed.

Tip: Clone the profile to ensure all attributes are copied.

Customer notifications

For each action, you can:

• Notify the customer
• Receive the notification yourself

Some actions always notify the customer.
To disable notifications:

1. Go to the Emails tab.
2. Disable the relevant email.
3. Uncheck Customer if applicable.

Choosing your failure management strategy

When configuring multiple actions for a failure type, you must specify how the steps are applied. It is essential to determine whether each step applies to a single transaction or to all transactions linked to the same document.

Available strategies

Why default works best

• Insufficient funds are often temporary → retry per transaction.
• Customer refusals are intentional → escalate per mandate.

Final step - Save your actions

After configuring all actions and selecting a strategy, click Save at the bottom of the screen.