> ## Documentation Index
> Fetch the complete documentation index at: https://klipy.ai/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Why did my plan downgrade after a failed payment?

> Klipy downgrades a subscription to Free after the third failed payment attempt and voids the unpaid invoice. Update payment before that happens.

Klipy's payment processor retries a failed renewal charge up to three times. After the second failed attempt, Klipy emails the account owner a warning. If the third attempt also fails, Klipy immediately switches the subscription to the Free plan and voids the unpaid invoice, with no further warning.

## What you'll see

* Your renewal payment fails and, at first, nothing in Klipy visibly changes — the workspace keeps working on the paid plan.
* After the **second** failed attempt, an email lands in the account owner's inbox warning that the payment failed and asking them to update the payment method.
* If a **third** attempt also fails, the subscription switches to the Free plan right away, with no additional warning.
* The unpaid invoice disappears from the billing history in `/settings/billing` — it isn't left sitting there as overdue.
* The subscription status itself, visible on the billing page, also reflects this: it moves through an unpaid state before landing on Free.

Because email is the only heads-up before the third attempt, the downgrade can feel sudden if that single warning email was missed, filtered, or sent to an inbox nobody checks.

<Frame caption="Screenshot coming soon: Settings → Billing showing the subscription on Free with unpaid-invoice history visible">
  <div style={{padding:'2.5rem 1rem',textAlign:'center',border:'1px dashed currentColor',borderRadius:'12px',opacity:0.55}}>Screenshot coming soon</div>
</Frame>

## Why it happens

This is deliberate billing logic in Klipy, not a bug. Klipy's payment processor makes up to three attempts to collect a renewal charge; on the third failure, Klipy moves the subscription to Free and voids the outstanding invoice so the processor stops retrying a charge that keeps failing — the failed amount is never silently collected later, even after a new payment method is added. The single warning email, sent once to the account owner after the second attempt, exists specifically to create a chance to fix the payment method before that third attempt triggers the downgrade.

## What to do now

<Steps>
  <Step title="Check for the payment-failed warning email">
    Search the account owner's inbox for a payment failure notice. It's sent once, after the **second** failed attempt — before the subscription is downgraded.
  </Step>

  <Step title="Update the payment method">
    Go to `/settings/billing`, open the billing portal, and update the card or payment method on file.

    <Note>
      Do this before a third attempt happens. Once the subscription is on Free, the voided invoice cannot be paid retroactively — updating the card at that point starts a fresh checkout rather than settling the old charge.
    </Note>

    <Frame caption="Screenshot coming soon: Update payment method button leading to the billing portal">
      <div style={{padding:'2.5rem 1rem',textAlign:'center',border:'1px dashed currentColor',borderRadius:'12px',opacity:0.55}}>Screenshot coming soon</div>
    </Frame>
  </Step>

  <Step title="If already downgraded, re-subscribe">
    If the subscription is already on Free because the third attempt failed, update the payment method first, then re-subscribe to a paid plan from `/settings/billing`. The paid plan does not resume on its own — re-subscribing is a manual step.
  </Step>
</Steps>

Free-plan limits still apply while on Free: 2 connected inboxes, with active paid plans lifting that to unlimited connected inboxes. See "How to Upgrade, Downgrade, or Cancel Your Plan" and "How to Update Your Billing Information and Access Invoices" for the rest of the billing flow.

## When to contact us

Contact support if the subscription was downgraded after a failed payment and you want it restored, or if you believe the payment failure was an error on Klipy's side rather than a card issue.

<AccordionGroup>
  <Accordion title="Will I be charged for the voided invoice later?">
    No. Once Klipy voids the unpaid invoice, that specific charge will not be retried or collected retroactively — even after a payment method is updated. Any new subscription starts a fresh billing cycle.
  </Accordion>

  <Accordion title="Does my paid plan come back on its own once I fix my card?">
    No. Updating the payment method alone does not restore a paid plan once the subscription has already moved to Free — you need to re-subscribe from `/settings/billing`.
  </Accordion>

  <Accordion title="Why did I only get one warning email before being downgraded?">
    Klipy sends a single warning email after the second failed attempt, before the third attempt triggers the downgrade. There's no additional email at the second or third attempt itself.
  </Accordion>

  <Accordion title="Does this affect every plan the same way?">
    The three-attempt retry and downgrade-to-Free behavior applies to standard paid subscriptions. Lifetime and token-exempt subscriptions keep their existing token access even if a payment on file fails.
  </Accordion>
</AccordionGroup>