Hi! I’ve been getting a lot of requests from potential customers to offer PayPal on our store. I’ve been hesitant to add it because I’ve seen PayPal hold onto funds, particularly subscription merchants, for a long time. Has this been the case for you? I’d love any and all feedback around offering PayPal as a payment option. Thanks in advance!
Christian M 23 days ago
In regards to issue #1 with PayPal, completely valid scenario any merchant may come across - Since this is a PayPal feature, Recharge’s hands are tied in terms of preventing this type of customer action overall. That being said, that ‘cancellation’ button isn’t a cancellation button in the traditional sense, it really only revokes those pre-authorized agreements for the payment method itself. At that point, the customer really has two options, either cancelling the subscription within their customer portal directly or if they intended to replace their payment method, updating that in their customer portal as well.
Depending on the settings found in Payment > Failed charges:
I could certainly see subscriptions sitting in this dunning process for quite some time when, ultimately, the subscription was meant to be cancelled by the customer. One potential solution I can think of for this would be to adjust your ‘Failed charges’ settings to decrease the time given to adjust the failed charge, the con for that is that it would obviously apply to all failed charges. Another thought is targeting these specific customers w/ these charge errors manually, via an external notification, and confirming with them that they’d like to cancel their subscription or if they were intending on simply cancelling their recurring payment method as the verbiage from PayPal can be confusing:
Ultimately, if you’ve seen this charge error enough where you feel you know customers intentions are an attempt to cancel their subscription, you can certainly do so manually to prevent Churnbuster from pursuing them further. It’s an interesting situation that can arise, because we’ve seen both scenarios here - A. Customers want to cancel their subscription and feel that the option within PayPal does just that B. Customers actually want to remove that recurring payment method but have failed to replace it (until they receive a reminder to do so). In this case, I actually don’t mind Churnbuster sending notification after notification to the customer, because it reminds the customer that the subscription remains active (while dunning) and that they have the opportunity to update their payment method – if they do not respond, they either have already unsubscribed to those emails anyway (lol) or it’s an indication that they intended to cancel. The question I also have, that I have raised internally with the team, is if there is something we can do about the actual cancellation reason itself. Something along the lines of ‘Cancellation reason > Other > PayPal revoked’, even if it sits there and auto cancels after a complete dunning cycle.
What are your thoughts on this? Should the default behavior be to cancel subscriptions with this charge error instantly > send out a ‘subscription canceled’ notification? Or should the order continue to remain in dunning until it reaches the max retry attempts and cancels automatically, giving the customer time to update their payment method? It’s tough, because we’re assuming customer intent here, a very unique scenario to find yourself in for sure.
Oh boy, apologies for the extra long response there folks! I’d love to hear your thoughts though! 😊