If you are using one of Zuora's pre-integrated payment method updaters, you may have payment methods in your customer accounts that have a status of "Closed." These payment methods are closed if the payment method updater service you are using (either the CyberSource Account Updater or the Litle & Co. Updater) returns a response to Zuora stating the credit card account has been closed.
When a default payment method is updated to closed status, you will not receive a call out or email notification when the update occurs.This article walks you through the steps to proactively check for payment methods with a closed status and ensure your invoices are processed for payment.
Batch Payment Run Logic
Our batch payment runs will perform the following check on a customer account before including the account in a payment run:
- Account must have a default payment method that is electronic (for example: credit card, PayPal, or ACH/Direct Debit account).
- Account must have auto-pay enabled (an electronic payment method must exist in the customer account before auto-pay can be enabled).
- The default payment method used for auto-pay must not be in Closed status.
- The account must have one or more invoices due for payment.
As stated above, the Zuora payment run checks the status of a default payment method before using the payment method to process payments for an account. If the default payment method is closed, the payment run will not process any payments for the customer account until the closed default payment method is replaced with a new electronic payment method.
Closed credit cards will only be seen by users of our pre-integrated payment method updaters. If you have closed credit cards, review the remainder of this solution for our recommendation in following up with your customers for updated payment methods.
Create a Report of Closed Payment Methods
Proactively run a report to check for default payment methods that are closed and follow up with the card holder for an alternative payment method.
To create a report on closed payment methods:
- Go to Z-Reporting > Reporting and click the button to Create a New Report (on the right).
- Choose a Report Type (for example, Column)
- Choose a Data Source (select Account).
- Column Selection. Select the columns you want to include on the report, include as many as desired but the image below, under step 5, are the recommended columns.
- Column Format - Optional. Format the columns you have selected in the previous steps, for example, you can update the caption column names.
- Filters. Create two filters: one to include only the default payment methods with status = Closed, and the other is a date filter that allows the report user to run a report based on when the payment method was updated to Closed status.
Here is an example of the two filters:
- To create the date filter, use Show Advanced Options.
- Sorting (optional).
8. Save your report and run it.
Here is a sample report:
This example shows a select number of columns, however, you may want to add additional columns for the card holder or billing contact information so you can contact the card holder to request an alternative payment method.
Request an Alternative Payment Method
Using the report you generated, contact the customer to obtain an alternative payment method. Once you obtain an alternative credit card, add this payment method to the customer account and set it as the default payment method. Use this new default payment method to process a payment for any open invoice(s) on the customer account. As described above, a payment can be processed using a batch payment run or by creating an ad hoc payment run.