Failed Payment Rate
Failed payment rate is the percentage of subscription payment attempts that are declined or fail to process. It encompasses card declines, insufficient funds, expired cards, and gateway errors.
Chargebee metric
Failed Payment Rate = (Failed Payments / Total Payment Attempts) × 100
Failed payment rate is the percentage of subscription payment attempts that are declined or fail to process. It encompasses card declines, insufficient funds, expired cards, and gateway errors.
Full guide: definition, formula, and benchmarksHow to calculate Failed Payment Rate
Failed Payment Rate = (Failed Payments / Total Payment Attempts) × 100
Why Failed Payment Rate matters for Chargebee users
Failed payments are the leading cause of involuntary churn and represent revenue that customers intended to pay but could not. Reducing failure rates has an outsized impact on retention and revenue.
Chargebee users can analyse failures by decline code, payment method, and geography to implement targeted fixes such as card updater services or alternative payment methods.
Driver
Conversion rate
Outcome · 58% contribution
Revenue
Understand and act on Failed Payment Rate with KPI Tree
Pull Chargebee payment attempt data into your warehouse and track failure rates in KPI Tree. Build a tree linking failed payments to dunning recovery and involuntary churn for end-to-end visibility.
Assign payments operations ownership and set alerts on failure rate spikes that may indicate gateway issues or card network problems.
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Related Chargebee metrics Ready to add to your trees.
Dunning Campaign Effectiveness
Subscription BillingDunning Effectiveness = (Recovered Payments / Total Failed Payments) × 100
Dunning campaign effectiveness measures the percentage of failed payments successfully recovered through automated retry and communication sequences. It quantifies how well your recovery process prevents involuntary churn.
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Invoice Collection Rate
Subscription BillingInvoice Collection Rate = (Paid Invoices / Total Invoices Issued) × 100
Invoice collection rate measures the percentage of issued invoices that are successfully paid within the billing period. It reflects the health of your billing and collections process.
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Customer Churn Rate
Subscription BillingCustomer Churn Rate = (Churned Customers / Start-of-Period Customers) × 100
Customer churn rate is the percentage of subscribers who cancel their subscriptions within a given period. It is the inverse of retention and one of the most critical health indicators for any subscription business.
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Payment Method Analysis
Subscription BillingPayment method analysis examines the distribution and performance of payment methods used by subscribers, including credit cards, direct debit, ACH, and digital wallets. It correlates payment method with success rates and churn.
View metricExplore Failed Payment Rate across integrations
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