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Paypal api – Paypal's behavior on failed/missing payment of Subscription

I am working on a Website or can say a Payment Portal in which users can Subscribe some of services using Paypal Subscription, and administrator can manage all Subscriptions,

I am using Paypal Subscription API for this, which documented here: https://developer.paypal.com/docs/api/subscriptions/v1/

All is going well, but confused with a thing like:

Suppose there is a Subscription Profile with 12 Monthly Cycle, So it will charge customer every month, Suppose first 2 payments charged successfully, but 3rd payment is missed/failed due to any reason, then how and when Paypal try to collect this missed payment, and if all failed attempt what will be the status of Subscription, if Subscription Plan have:

1) payment_failure_threshold is 0,

2) payment_failure_threshold is 1,

3) payment_failure_threshold is 2,

I checked about payment_failure_threshold

I checked on Paypal about this case here https://developer.paypal.com/docs/classic/paypal-payments-standard/integration-guide/reattempt-failed-payment/

But it does not state about payment_failure_threshold.

API documentation said this about payment_failure_threshold:

enter image description here

But I still confused with the different values of payment_failure_threshold.

Please help me to find out the behavior of failed payment retry with its different values. Explanation via some example with date (when and how much time Paypal will retry, and on all failed attempt what will be the status of Subscription) will helpful for me,

Thanks

EDIT:
I asked a question at Paypal Merchant Technical Support about Missing Payment Retry Process, So first, they answered this:

enter image description here

Then I gave referenced of this link, then they guys answered this:

enter image description here

And it’s almost a month, and they didn’t update their docs.

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2

Answers


  1. 0

    Saw this on Paypal Developer Documentation

    PayPal reattempts a recurring payment three days after the recurring
    payment failed. If this first reattempt fails, PayPal waits 5 days to
    reattempt a second time. If the second reattempt fails, PayPal cancels
    the subscription.

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  2. 0

    so basically payment_failure_threshold states for how many sub cycles can be failed.
    Let’s say you have sub started on 4th Feb with 1 month cycle plan and payment_failure_threshold is set to 2. The payment during sub creation was succesful.
    Paypal is gonna try to rebill sub on 4th of March. If it fails, it’s gonna try again twice 5, 10 days later. If it fails on 14th of March it’s gonna raise failed attempts (for charging cycles) from 0 to 1.
    Then paypal is gonna try again to rebill it on 4th of August. If it fails, it’s gonna try again twice 5, 10 days later. If it fails on 14th of August it’s gonna raise failed attempts (for charging cycles) from 1 to 2.
    Failed paid cycles reached threshold so sub is going to be suspended. Up to this point sub was active and the money customer owes for sub is added to his outstanding balance.
    You can suspend user sub via api if you wish.
    You can activate it, let’s say on 3rd of May via api. Paypal is gonna try to collect money on 4th of May.
    You can try to collect outstanding money via api.
    An example can be found here, although here they say that failed paid cycles must exceed payment_failure_threshold for the sub to be suspended:
    https://developer.paypal.com/docs/platforms/subscriptions/add-capabilities/payment-failure-retry/
    while here they say that it can be just equal:
    https://developer.paypal.com/docs/api/subscriptions/v1/#subscriptions_create

    For example, if payment_failure_threshold is 2, the subscription automatically updates to the SUSPEND state if two consecutive payments fail.

    But this can be easily checked in their sandbox.

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