Churn Management: Understanding Outcome Statuses

Modified on Mon, 9 Oct, 2023 at 12:48 PM

The Churn Rule Management feature allows users to create unique rules on pAIment, to cater for the business rules required for the collection of the unpaid funds and arrear values on a customer’s account. Through this feature, these configured rules can be implemented automatically by pAIment when a customer churns.

The following Churn outcomes are possible via paiment:

Awaiting Collection
Active
Disputed
Suspend
Cancel
Default

Status Definitions

Status	Definition
Awaiting Collection	The platform prepares the debit order collections file aligned to the configured days before a debit order collection date. This configuration is done per Organization. Examples of this: Business A runs their Invoicing process 5 days before the Debit order Collection date for a customer. The Awaiting collection process is the first step once an invoice is created, and the collection file is sent to the bank. At this point the: Invoice Status = Now Due Subscription Status = Awaiting Collection.
Active	The active outcomes occur at multiple points in the invoicing and collections flow. These are as follows: 1. When the first invoice of a subscription is created an update of the Invoice and Subscription Status occurs. These are: Invoice Status = Created Subscription Status = Active 2. The Active outcome is the positive scenario of a subscription when a customer’s debit order is successfully collected. At these points the statuses updates as follows: Invoice Status = Paid Subscription Status = Active 3. During any negative scenarios such as Dispute and Suspend, there are 2 outcomes dependent on the business retentions processes, with the Active result being the positive result. Invoice Status = Now Due Subscription Status = Active 4. The final outcome where the Subscription remains active but is in fact a negative customer payment scenario is when the customer debit order is Unpaid but the subscription remains active. Invoice Status = Unpaid Subscription Status = Active
Disputed	The dispute outcome is triggered by the response file from the bank after a collections file is sent. paiment currently only has two banks which are the sponsoring banks for the collection services. Based on the following reason codes a Subscription is seen as Disputed At the receipt of any of the above codes the following status updates occur: Invoice Status = Suspended Subscription Status = Dispute
Suspend	The suspend outcome is triggered by the response file from the bank after a collections file is sent. pAIment currently only has 2 banks which are the sponsoring banks for the collection services. Based on the following reason codes a Subscription is seen as Suspend: At the receipt of any of the above codes the following status updates occur: Invoice Status = Unpaid Subscription Status = Suspend
Cancel	The Cancel outcomes occur at multiple points in the invoicing and collections flow. These are as follows: The Cancel outcome is the negative scenario of a business retentions process through either the Disputed or Suspend reason codes being triggered on the platform. For either the Cancel result after a call with the client can result in: Dispute Triggers Invoice Status = Reversed Subscription Status = Cancel Suspend Triggers Invoice Status = Unpaid Subscription Status = Cancel During any point in a customer’s journey the option for cancellation is available. This will result in the following: Invoice Status = as of last invoice update. Subscription Status = Cancel
Default	The Default outcomes occurs directly because of the customers payment and the arrears age of a customer’s subscription. This will be dependent on an Organisation but for the default flow this will be set at 31 Days in Arrears. Arrears occurs on an account when an insufficient funds reason code is receipted. The reasons codes are: The Default outcome results in the following status changes: Invoice Status = Unpaid Subscription Status = Default