[JakeVacovec]

It definitely depends on the type of customer and type of product. There is a % of recoveries that will churn in the following 1-2 billing cycles and there's a larger % that will stay longer. Ultimately increasing recovery rate across the board means more revenue, which is good for a business.

Error type is also not indicative of customer quality. For example, businesses and consumers set limits on their cards all the time so an insufficient funds error doesn't mean they have no money.

If the customer doesn't want the service they have the option to cancel. This is why the LTV of customers recovered after a payment failure (involuntary churn prevention) is significantly higher than those saved from cancellation prevention flows (active churn prevention).

[benatkin]

> Ultimately increasing recovery rate across the board means more revenue, which is good for a business.

Not if it isn't ethical. You're painting those with the failed payments who didn't cancel of being the ones in the wrong to justify the action taken against them, but heavy handed payment collection of a SaaS they likely weren't using doesn't sound great to me either. How about just doing the honorable thing that also isn't chasing bad clients?

> If the customer doesn't want the service they have the option to cancel.

Would you take Adobe as a customer, with their infamous cancellation dark patterns?

[JakeVacovec]

Our Merchants can configure the recovery period and messaging to their liking and we ensure there's strict adherence to the compliance and regulatory rules set by card networks.

Ethics and honor are great things but keep in mind we're not a collections agency that's buying bad debt off companies for pennies on the dollar to chase, which sounds like the experience you're referring to.