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What Happens When a Member Doesn’t Pay Their Membership Fee?

Raklet offers flexible options to cancel subscriptions when members don't pay on time.

Updated today

With Raklet, renewing the memberships of the members who do not pay is all up to you. You can determine whether the system will cancel the membership automatically or not.

Setting Up Payment Failure Rules

When creating a membership plan in Raklet, you can define rules for handling failed payments. Navigate to Membership > Plans > Add Plan and configure the "If not paid" rule. You have two primary options:

1. Leave Subscription As Is

  • Behavior: The subscription remains active but is marked as Past Due.

  • Invoice Status: The invoice stays open, allowing members to pay anytime.

  • Reactivation: Once the outstanding balance is paid, the subscription automatically returns to Active status.

Best for organizations that prefer to keep the subscription active, giving members the flexibility to pay later.

2. Cancel Subscription

  • Behavior: The subscription is automatically canceled after a specified grace period.

  • Additional Options:

    • Grace Period: Set a specific duration (e.g., 30 days) before cancellation occurs.

    • Void Latest Invoice: Choose to void the latest invoice after the grace period, relieving the member of the payment obligation.

    • Update Membership Status to Frozen: Automatically change the member's status to Frozen, restricting access to the platform. An admin must manually reactivate the member by changing the status back to Active.

Ideal for organizations that require strict adherence to payment schedules and wish to automate the cancellation process.

Freezing Memberships

Enabling the "Update membership status to Frozen?" option will:

  • Restrict Access: Members cannot log in to the system.

  • Manual Reactivation: An admin must manually change the member's status back to Active to restore access.

Useful for temporarily suspending access without canceling the subscription entirely.

Monitoring Outstanding Balances

To identify members with unpaid balances:

  1. Go to the Contacts section.

  2. Use the filter: Balance < 0

This will display a list of members who owe money, allowing you to take appropriate actions such as sending reminders or updating their status.

Summary of Reactivation Scenarios

Scenario

Reactivation After Payment?

Notes

Leave subscription as is

✅ Yes, automatically

Subscription remains active; invoice stays open.

Cancel subscription (without invoice voided)

✅ Yes, if paid before the grace period ends

Subscription isn't reactivated if it's paid after the grace period.

Cancel subscription + Void invoice

❌ No

Invoice is canceled; member must start a new subscription.

Frozen membership

🚫 No

Admin must manually change the status to Active.


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