Involuntary churn (also referred to as passive churn) refers to when customers unintentionally opt out of a subscription business’s products or services. Unlike voluntary churn, where a customer actively decides to end their service with a subscription business, involuntary churn occurs due to failed transactions, such as failed payments when credit cards expire, when there are insufficient funds in a bank account, or when a credit limit is maxed out. Both passive and active churn pose major challenges to the health of subscription businesses, who not only rely on recurring payments, but also long-term customer relationships and customer retention.