Payment Reminder: Email, SMS & Letter Templates + Automation Guide [2025]

Late payments drain more cash flow than almost any other business challenge. You've delivered the work, sent the invoice, and now you're stuck wondering: when do I follow up? What do I say? How firm is too firm?

Here's the thing—most businesses lose thousands every month not because customers refuse to pay, but because they don't have a systematic reminder process. You wait too long, use the wrong tone, or give up after one awkward email.

This guide gives you everything you need to get paid faster: 300+ copy-paste templates for email, SMS, and letters, exact timing for every stage from pre-due to final notice, an interactive sequence builder, and step-by-step automation for QuickBooks, Xero, and Stripe. Whether you're a solo freelancer or managing AR for a growing company, you'll have professional reminders ready in the next 10 minutes.

New to business reminders? Start with our appointment reminder guide to master reminder fundamentals, then apply the same principles here. Looking for SMS inspiration? Our appointment reminder text templates provide proven short-message frameworks you can adapt.

Photo by Nicola Barts on Pexels

What Is a Payment Reminder?

A payment reminder is a brief, professional message—sent before or after an invoice due date—that identifies the invoice number, amount, and deadline, includes a direct payment link, and offers help if needed. Effective reminders are timely, clear, and respectful, and they set expectations for the next step.

Payment reminders serve two purposes: they help honest customers who simply forgot, and they establish a documented trail for accounts that need escalation. The best reminders assume goodwill while protecting your business interests.

According to research from JPMorgan Chase, businesses that send systematic payment reminders reduce their days sales outstanding (DSO) by an average of 12-18 days. That's thousands of dollars back in your operating account every month.

Elements of an Effective Payment Reminder

Every effective reminder includes these six components:

• Invoice reference: Exact invoice number (e.g., "INV-2847") so there's no confusion
• Amount due: Clear dollar figure, including currency if you work internationally
• Due date or days overdue: "Due March 30" or "Now 7 days past due"
• One-click payment link: Make it effortless—no hunting for portal logins
• Help offer: "Reply if you need updated PO numbers" shows you're solution-oriented
• Next step: "I'll follow up Friday if I don't hear back" sets clear expectations

For 40+ polite email templates organized by tone and timing, see our complete polite payment reminder email guide.

Timing Overview: When to Send Each Reminder

Timing determines everything. Send too early and you annoy customers; wait too long and you're chasing ghosts. Here's the proven cadence used by thousands of businesses:

This isn't rigid—adjust based on your payment terms, industry norms, and relationship depth. A $500 invoice to a long-term client might get +5/+10/+20 timing. A $10,000 project deposit from a new customer might use +1/+3/+7. For the exact 1st, 2nd, and 3rd reminder sequence with copy, see our complete cadence guide.

The Tone Ladder: Friendly → Polite → Firm → Final

Your tone should escalate gradually. Jumping from friendly to threatening destroys relationships. Moving too slowly signals you're not serious about payment.

Think of it as a four-rung ladder:

1. Friendly (Pre-due, due-day): Assume they want to pay. Use "just a heads-up" language.
2. Polite (+3 to +7 days): Acknowledge it's late but stay solution-focused. "Let's wrap this up."
3. Firm (+14 days): State consequences clearly. "We may need to pause services if..."
4. Final (+30 days): Be direct and factual. "This is a final notice. Payment required by [date]."

We've built templates for every rung. You'll find them in the sections below, plus in our outstanding balance reminder templates for long-overdue accounts.

The Complete Reminder Cadence (With Timing Matrix)

Let's walk through each stage with specific examples. Copy any of these templates, swap in your merge fields (invoice number, amount, due date, payment link), and you're ready to send.

Pre-Due Reminders (T-3 to T-1): "Just a Heads-Up"

Pre-due reminders reduce late payments by 35-40%, according to Bill.com research. They're especially effective for customers juggling multiple vendors—your reminder puts you top-of-mind before the due date hits.

When to send: 3 days before due date (larger invoices or new customers) or 1 day before (established relationships).

Email example (Pre-Due, T-1):

SMS example (Pre-Due):

For 30+ pre-due templates with A/B testing calendars, see our payment reminder before due date guide.

Due-Day Reminders (T-0): Concise and Actionable

This is your "soft" nudge for the day payment is due. Keep it brief—you're not accusing anyone of being late yet.

Email example (Due Day):

This is neutral and helpful. You're not scolding—just stating facts and making it easy to pay.

Post-Due Reminders (+3/+7/+14 Days): Escalating Tone and Options

Now we're into "past due" territory. Your language should acknowledge the delay while staying professional.

Email example (+3 days):

Email example (+7 days, firmer tone):

Email example (+14 days, firm and consequence-oriented):

Get day-by-day overdue templates with exact timing in our overdue invoice reminder guide.

Final Notice (T+30 Days): Legal-Safe, Direct Language

If you've reached 30+ days with no payment or response, it's time for a final notice. This needs to be firm but not threatening—you're stating facts and consequences.

Email or letter example (Final Notice):

For 20+ final notice letters with printable PDF formats and legal-safe language, see our final payment notice templates.

Channel Templates: Email, SMS, and Letters

Different channels work for different customers and contexts. Email is your workhorse, SMS cuts through inbox clutter, and letters signal seriousness. Use all three strategically.

Email Templates: Subject Lines and Full Bodies

Subject lines determine whether your reminder gets opened. Here are 25 high-performing options organized by stage:

Pre-Due & Due Day:

• Quick heads-up: Invoice [INV-123] due [Date]
• Friendly reminder: [INV-123] ($[Amount]) due [Date]
• Today: [INV-123] is due
• Can you help confirm [INV-123]?
• Small nudge on [INV-123]

+3 to +7 Days:

• Following up on [INV-123] (past due)
• Action needed: [INV-123] now overdue
• Let's wrap [INV-123] today
• Invoice [INV-123]: can we resolve this?
• Need update on [INV-123] payment

+14 Days:

• Urgent: [INV-123] payment required
• Important: [INV-123] now 14 days past due
• [INV-123]: immediate attention needed
• Last reminder before escalation: [INV-123]

Final Notice:

• Final notice: Payment required by [Date]
• Final reminder: [INV-123] due [Date]
• Action required: [INV-123] final notice

Match these with the email bodies from the cadence section above, or browse 200+ email templates in our polite payment reminder email library.

SMS and WhatsApp Templates (≤160 Characters)

SMS reminders get 98% open rates compared to email's 20-25%, per Textedly research. The catch: you have 160 characters including spaces. Every word counts.

Pre-Due SMS:

Due-Day SMS:

+3 Days SMS:

+7 Days SMS (firmer):

Final SMS:

For 80+ SMS templates with WhatsApp variants and opt-out language, see our payment reminder SMS guide.

Letters and Printable PDFs: For Serious Accounts

Paper letters signal seriousness. Use them for:

• Accounts 30+ days overdue with no response to email/SMS
• High-value invoices ($5,000+) where documentation matters
• B2B relationships where AP departments require formal notices
• Final notices before collections or legal action

Send via certified mail with return receipt when documenting for collections or disputes.

Letter template example (Final Notice):

Download 20+ ready-to-print final notice templates in our final notice letter library.

Automation Quick-Start: QuickBooks, Xero, and Stripe

Manual reminders work when you have 5-10 outstanding invoices. Once you hit 20+, automation becomes essential. Here's how to set it up in the three most popular platforms.

QuickBooks Online: Automatic Invoice Reminders

QuickBooks can send reminders automatically based on due dates. Here's the 5-minute setup:

1. Enable reminders: Go to Settings → Account and Settings → Sales → Reminders → Turn on "Automatic invoice reminders"
2. Set timing: Choose when to send (e.g., 3 days before due, on due date, 3 days after, 7 days after)
3. Customize messages: Click "Edit email template" and paste your templates from this guide
4. Add your payment link: Use the {PaymentUrl} merge field so QuickBooks inserts the correct link
5. Test first: Send a test to yourself, check formatting and links

Common pitfall: QuickBooks sends one reminder per stage, not repeated follow-ups. If a customer doesn't pay after the first +7-day reminder, you'll need to send the second +14-day manually or set up a recurring task.

For screenshots, merge field reference, and troubleshooting, see our QuickBooks invoice reminders guide.

Xero: Payment Reminders (Manual and Automatic)

Xero offers both automatic and manual reminder options:

Automatic setup:

1. Go to Settings → Invoice Settings → Invoice Reminders
2. Toggle "Send automatic invoice reminders" ON
3. Set your schedule (due date, +3, +7, +14, etc.)
4. Customize each message template
5. Choose whether to include a statement with the reminder

Manual send (for exceptions or one-off follow-ups):

1. Open the invoice
2. Click "Send Reminder"
3. Choose or edit your message template
4. Send immediately or schedule for later

Pro tip: Use Xero's "Send statement + reminder" option for customers with multiple overdue invoices. It gives them the full picture in one email.

Full setup with screenshots in our Xero payment reminders guide.

Stripe: Invoice and Subscription Dunning

Stripe handles two reminder types: invoice reminders (one-time payments) and subscription dunning (failed recurring charges).

Invoice reminders:

1. In Stripe Dashboard → Settings → Email Receipts → Invoice Reminders
2. Set days before/after due date to send reminders
3. Customize email templates with your copy
4. Stripe auto-inserts payment links and invoice details

Subscription dunning:

1. Dashboard → Settings → Subscriptions → Dunning
2. Choose retry schedule (e.g., retry failed charges at +1, +3, +7 days)
3. Set email reminders for each retry attempt
4. Decide when to cancel subscriptions (e.g., after 4 failed attempts)

Advanced option: Use Stripe webhooks (invoice.payment_failed, charge.failed) to trigger custom reminder sequences via your CRM or email tool. This gives you more control over timing and messaging.

Complete Stripe setup with webhook examples in our Stripe payment reminders guide.

Best Practices and Compliance Basics (US)

Getting paid is important. Staying compliant and preserving relationships is critical. Here's how to do both.

Be Clear, Accurate, and Non-Harassing

The Fair Debt Collection Practices Act (FDCPA) regulates third-party debt collectors, not creditors collecting their own debts. But it's smart to follow FDCPA principles anyway:

• Don't harass: No repeated calls (more than once per day is questionable), profanity, or threats of violence or legal action you can't take
• Keep it in business hours: Don't contact customers before 8am or after 9pm their local time unless you have permission
• Respect "cease contact" requests: If a customer asks you to stop contacting them, you must—though you can still pursue payment through other means
• Don't discuss the debt with third parties: Only contact the customer and (if business debt) their authorized AP contact

The CFPB's Regulation F (effective 2021) adds clarifications like limits on weekly contact attempts. Even though it targets collectors, model your process on these rules to avoid complaints.

Document Everything: Paper Trail Basics

Keep records of:

• Invoice send dates and delivery confirmations
• All reminder emails, SMS, letters (including dates sent)
• Customer responses and promises to pay
• Phone call notes with dates, times, and outcomes
• Certified mail receipts for final notices

If you ever need to prove you made good-faith collection efforts—or defend against a harassment claim—this documentation is your protection.

When to Escalate: Collections, Plans, or Legal Action

After 60-90 days with no payment or response, you have three main options:

1. Payment plan: Offer installments if the customer is willing but cash-strapped. Get it in writing (email is fine) with specific dates and amounts. "I can pay $500/month for 3 months starting May 1" is enforceable; vague promises aren't.
2. Collections agency: They typically take 25-50% of recovered amounts. Choose agencies that follow FDCPA rules strictly—their violations can come back on you. Send a final notice giving 7-10 days before referral.
3. Small claims court: For amounts under your state's limit (usually $5,000-$10,000), small claims is DIY-friendly and costs $50-$200 to file. You'll need your invoice, proof of delivery, and your reminder trail. Winning is one thing; collecting is another—many judgments go unpaid.

Practical tip: Before escalating, ask yourself: "Is this relationship salvageable?" If yes and the amount is small, consider writing it off and requiring prepayment going forward. Sometimes the cost (time, stress, money) of aggressive collection exceeds the invoice value.

Implementation: Your 7-Day Action Plan

You now have the templates, timing, and tools. Here's how to roll this out in your business over the next week.

Day 1-2: Audit and Prepare

1. Export your AR aging report: Pull this from QuickBooks, Xero, Stripe, or whatever you use. Group by days overdue: current, 1-15, 16-30, 31-60, 60+
2. Categorize each account:
   • Green: Good customers, occasional late payers → Standard cadence
   • Yellow: Chronic slow payers → Compressed cadence (e.g., +1/+5/+10)
   • Red: Non-responsive or disputing → Manual handling
3. Choose your templates: Pick 5 core templates from this guide (pre-due, due-day, +3, +7, final). Customize with your business name, payment portal, and contact info.
4. Set up your tools: If using QuickBooks/Xero/Stripe, follow the automation setup from Section 4. Test with a dummy invoice sent to yourself.

Day 3-4: Catch Up on Overdue Accounts

5. Triage by days overdue:
   • 1-7 days: Send +3 or +7 day email (appropriate to actual days)
   • 8-15 days: Send +14 day email (firmer tone)
   • 16-30 days: Send final email + SMS
   • 31+ days: Send final notice letter (certified mail if high value)
6. Batch your sends: Don't do this one-by-one if you have 20+ overdue invoices. Use mail merge in Gmail, Outlook, or your CRM. Make sure payment links are correct for each invoice.
7. Track responses: Create a simple spreadsheet: Customer | Invoice | Amount | Reminder Sent | Response | Next Action | Date. Update daily.

Day 5-6: Set Up Going Forward

8. Enable automation: Turn on QuickBooks/Xero/Stripe reminders so future invoices get automatic nudges
9. Create recurring tasks: Set calendar reminders to check AR aging every Monday. Review accounts 7+ days overdue and send manual follow-ups as needed.
10. Update your invoice template: Add clear payment terms ("Net 30"), due date, and payment link. Mention that reminders are automatic: "You'll receive payment reminders if this invoice becomes overdue."

Day 7: Review and Refine

11. Check early results: How many customers paid after your catch-up reminders? Calculate DSO reduction (if you have baseline data)
12. Refine templates based on responses: If customers are asking the same questions ("Where's my PO?" or "Can I get a statement?"), add that info to your standard reminders
13. Document your new process: Write a one-page SOP: when reminders send, what to do for exceptions, who handles escalations. If you have a team, make sure everyone follows the same system.

Common Mistakes to Avoid

• Waiting too long: "I don't want to bother them" costs you thousands. Send reminders on schedule.
• Vague wording: "When you get a chance..." is weak. Use clear deadlines: "Please pay by Friday, March 15."
• No payment link: Make it one-click easy. Never make customers hunt for your portal URL.
• Tone jumps: Going from "just checking in" to "we're suing you" destroys relationships. Escalate gradually.
• No documentation: If you can't prove you sent reminders, you have no leverage in disputes.
• Giving up after one reminder: The average customer needs 3-4 reminders. Persistence pays.

Frequently Asked Questions

Start Getting Paid Faster Today

Late payments aren't a mystery—they're a system problem. Most customers aren't avoiding you; they're overwhelmed, disorganized, or simply forgot. Your job is to make payment easy and remind them at the right times with the right tone.

Here's what you've learned in this guide:

• The proven cadence: Pre-due → Due-day → +3 → +7 → +14 → Final at +30 days
• 300+ templates across email, SMS, and letters for every stage and tone
• Automation setup for QuickBooks, Xero, and Stripe (15 minutes max)
• Compliance basics to protect yourself legally
• Implementation plan you can roll out in 7 days

The businesses that get paid fastest don't have better customers—they have better systems. Start with one thing: pick your pre-due and due-day templates from this guide, set them up in your accounting software, and watch your DSO drop.

Keep learning:

• 40+ Polite Payment Reminder Email Templates
• Overdue Invoice Reminder Templates (+3/+7/+14 Days)
• 1st, 2nd, 3rd Reminder Email Cadence Guide
• 80+ Payment Reminder SMS Templates (Short & Effective)
• Final Notice Letter Templates (Free PDF Downloads)