Dunning is the process of contacting buyers to collect payment on invoices that are overdue or have failed. It usually runs as a planned sequence of reminders that grow firmer over time, starting with a friendly nudge and escalating toward final notices. In recurring billing and subscription systems, dunning is often automated to recover failed card charges without manual follow-up.
How it works
A dunning process is built around a schedule of touchpoints tied to the invoice due date. A typical cadence might send a reminder a few days before the date, on the date, then at 7, 14, and 30 days past due. Each message references the invoice number, amount, and a payment link. Automated systems also retry failed payment methods and pause access or flag the account after a set number of attempts.
Why it matters
Unpaid invoices tie up cash and create write-off risk. A consistent dunning process shortens the time it takes to get paid (often measured as days sales outstanding) and removes the awkwardness of chasing buyers one message at a time. It also keeps a clean record of every reminder sent, which helps if a payment is later disputed.
B2B quoting on Shopify
Quotes frequently settle on net terms rather than upfront, so dunning matters most after a quote is accepted. On Shopify, if a buyer accepts a quote and pays through native checkout at the time of acceptance, there is no receivable to chase. When you extend terms instead, the overdue balance sits as an unpaid order or draft order, and you handle dunning through your accounting or invoicing tool. See the B2B quoting glossary for related terms like net terms and draft orders, or pricing for plan details.