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