account_closedAccount Issuerare

Account Closed

What This Means

The bank account linked to the payment method has been closed. This is similar to card_account_closed but may apply more broadly to bank accounts used for ACH or direct debit. SaaS businesses need to collect a new payment method.

This decline is not retryable.

Retrying will likely fail again. The customer needs to update their payment method or contact their bank.

Common Causes

  • 1Customer closed their bank account entirely
  • 2Bank closed the account due to fraud, inactivity, or policy violation
  • 3Customer migrated to a different financial institution

Recovery Tactics

  1. 1Stop all retry attempts immediately
  2. 2Notify the customer that their payment method is no longer valid
  3. 3Provide easy options to add a new payment method
  4. 4Consider offering a temporary grace period
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FAQ

How quickly should I notify the customer?

Notify within 24 hours of the first decline. The customer may not realize their closed account was still linked to your service. A prompt, helpful notification gives them time to update before service is interrupted.

Should I try other payment methods on file?

If the customer has other valid payment methods stored, you can attempt those. However, always notify the customer that their primary method failed and let them choose which backup to use.

Free Tool

How healthy is your Stripe account?

Get a free churn health report. Find pending cancellations, failed payments, and expiring cards putting your MRR at risk.

Run Free Audit