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Business glossary

Dunning

Definition

A structured process for reminding customers about failed or overdue payments.

Pocket Invoice Editorial Team · Updated

Example

A billing team checks an overdue balance, sends a factual reminder, records the customer's response and schedules another follow-up if needed. A failed card payment may require updating payment details before a retry.

How it differs from related terms

Dunning is the follow-up process; a collection letter is one communication within it. Keep paid, disputed and overdue amounts separate so customers receive a reminder about the correct balance.

Frequently asked questions

What is an example of dunning?

A billing team checks an overdue balance, sends a factual reminder, records the customer's response and schedules another follow-up if needed. A failed card payment may require updating payment details before a retry.

How should dunning be interpreted?

Dunning is the follow-up process; a collection letter is one communication within it. Keep paid, disputed and overdue amounts separate so customers receive a reminder about the correct balance.