Account Suspension and Termination

Our timeline is this (we sell VPS services by the way):
T - 14 days -> new invoice generated
T - 3 days -> invoice payment reminder
T -> invoice is due
T + 1 day -> first overdue notice
T + 2 days -> second overdue notice
T + 3 days -> third overdue notice
T +4 days -> automatic service suspension
And after 7 more days - cancellation/termination

Of course we make exception for some clients - if the client has contacted us saying that he needs to pay a few days later, etc. we can make a compromise. But if there have been no communication with the client we assume he is just not interested in continuing the service.
 
3-5 Days suspend.

Up to a month before anything is terminated, just to be on the safe side.
 
It also depends on the customer.
Sometimes if they have been with you a long time and are usually a good payer then you might allow them a bit longer before susspending or terminating their service.
 
VMhosts-Gordon said:
It also depends on the customer.
Sometimes if they have been with you a long time and are usually a good payer then you might allow them a bit longer before susspending or terminating their service.
Click to expand...

as we have the system set to auto suspend/terminate, but if a client contacts us then we will unsuspend etc. we will even remove the late fee depending on the reason given for non payment
 
VMhosts-Gordon said:
It also depends on the customer.
Sometimes if they have been with you a long time and are usually a good payer then you might allow them a bit longer before susspending or terminating their service.
Click to expand...

That is great. Just because a client hasn't paid you doesn't mean he won't pay or is not interested in continuing the service. He maybe getting some issues with his credit cards or PayPal account.
 
Westpoint said:
That is great. Just because a client hasn't paid you doesn't mean he won't pay or is not interested in continuing the service. He maybe getting some issues with his credit cards or PayPal account.
Click to expand...

Indeed.

But calling the client if emailing does not get anywhere, is ideal.
Or even them contacting you if they have issues.

Otherwise both sides have failed to resolve issues.
 
After 3-5 days after unpaid invoice, system automatically suspend. After 30 days and it still isn't paid the services get terminated.
 
It takes about 4-5 days before we suspend anything. We keep the data for a bit in case the client comes back which most do.

- Daniel :)
 
Well explained in post number 4..
We try to make phone calls before suspension as we assume they have not receieved our warnings and down time might cost them money.
If they fail to answer to the phone calls after 1 week, the service is removed completely in the interest of privacy.
 
Suspend after 5 days. Terminate after 6 months. (I know its alot, but space really is not an issue and you will be surprised how many clients we have retained this way.)
 
Why wait with suspension? We do suspend 2 days after late payment, and we terminate after 14 days.
We send out the first invoice 14 days before due day, so they have enough time to pay.

And many times the warning email goes directly to spam folder, so the only way for them to see that they're late on payment, is to see the big SUSPENDED text on their website next time they login.
 
Settoz said:
Why wait with suspension? We do suspend 2 days after late payment, and we terminate after 14 days.
We send out the first invoice 14 days before due day, so they have enough time to pay.

And many times the warning email goes directly to spam folder, so the only way for them to see that they're late on payment, is to see the big SUSPENDED text on their website next time they login.
Click to expand...

I agree this is how we work, why give them 2 weeks free hosting if they dont pay
 
This is how we have our structure set out

For New Clients
If order left unpaid then
After 1 day a First Overdue reminder is sent.
After 2 days a Second Overdue reminder is sent.
After 3 days the order will be cancelled and their IP blocked and reported.
For existing clients
An invoice will be generated and sent 14 days before the due date
A reminder will be sent 1 day before the due date
Invoice then resent on due date and then if unpaid
After 1 day a First Overdue reminder is sent.
After 2 days a Second Overdue reminder is sent.
After 2 days their account will be suspended and a 20% late fee is added to the invoice.
After 3 days a Third and Final reminder is sent
After 14 Days their account will be terminated.
Click to expand...

so basically from issue to termination they have had 28 days to pay the invoice or contact us

so if they cant pay their invoice over a 28 day period then i dare say they are not going to pay,
 
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