Grace Periods in Billing

The time window after a failed payment where a customer can update their billing info before cancellation.

What are Grace Periods in Billing?

A billing grace period provides extra time for customers to resolve payment failures before losing access to a service.

Grace periods help reduce involuntary churn.

Common grace period policies include:

  • 3-7 days for minor payment failures
  • 14-30 days for subscription renewals
  • Automated reminders prompting users to update payment methods
  • Many SaaS businesses implement grace periods to retain customers after failed transactions.

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