Moving to a Merchant of Record Shifts Dunning Work but Does Not Remove It

Teams that adopt a merchant of record like Paddle often focus on offloaded tax and payment handling, but failed renewals still occur and must be recovered. The platform's retry logic is tuned to its whole portfolio, so a company's specific failure patterns may get less attention. The customer relationship and communication remain the company's responsibility, and running a parallel retry effort would create duplicate pressure on subscribers. Leverage lies in pre-renewal warnings, especially for annual plans, and in support processes that treat locked-out customers as renewals in progress. The article concludes that teams should map which dunning responsibilities they hand over and which stay with them before migrating.