> ## Documentation Index
> Fetch the complete documentation index at: https://docs.payreque.st/llms.txt
> Use this file to discover all available pages before exploring further.
# Escalation Pipeline
> How the 5-stage collection pipeline works and how cases are escalated automatically
# Escalation Pipeline
Every collection case follows up to 5 stages. Each stage increases the urgency of communication and can add collection fees to the outstanding balance. You can escalate cases manually or let PayRequest handle it automatically.
## The Stages
### Stage 0: Pre-Collection (Optional)
A soft, informal reminder before formal collection begins. Enable this by toggling **Pre-Incasso** when creating the case.
**Tone:** Gentle and friendly
**Message:** "We would like to kindly remind you that the following invoice is still open."
* No collection fees
* Ideal for first-time late payers
* After 14 days, automatically escalates to Stage 1
* Gray/neutral presentation in the customer portal
Pre-incasso is free and non-threatening. Use it to give customers one final chance before starting formal collection.
### Stage 1: Friendly Reminder
The first contact assumes the customer simply forgot or overlooked the invoice.
**Tone:** Polite and helpful
**Message:** "You have an outstanding invoice that requires your attention. Please arrange payment to avoid further action."
* No collection fees added
* Email reminder sent
* Customer sees a gentle warning in the portal
### Stage 2: Formal Notice
A more formal communication setting a clear deadline for payment.
**Tone:** Professional and firm
**Message:** "This is a formal notice regarding your outstanding payment. Please settle this amount within 7 days."
* No collection fees added (optional at your discretion)
* Postal letter recommended at this stage
* Customer portal shows formal notice banner
### Stage 3: Collection Fees
At this stage, collection fees can be added to cover your recovery costs.
**Tone:** Firm and direct
**Message:** "Collection fees have been added to your outstanding balance. Please pay the total amount immediately."
* **Collection fees added** to the balance
* The customer sees the original amount + collection fee in the portal
* Payment pages show the total including fees
* Postal letter sent automatically (if Pingen is configured)
### Stage 4: Final Warning
The last stage before further consequences (legal action, external collection agency, etc.).
**Tone:** Urgent
**Message:** "This is your final warning. Immediate payment is required to avoid further consequences."
* Maximum urgency in all communication
* Customer portal shows a red warning banner
* All payment links reflect the full amount including fees
## Visual Progress
Customers see a progress bar in the Customer Portal showing how far along the collection process they are:
| Stage | Color | Label |
| ----- | ------ | --------------- |
| 0 | Gray | Pre-Collection |
| 1 | Blue | Reminder |
| 2 | Amber | Formal Notice |
| 3 | Orange | Collection Fees |
| 4 | Red | Final Warning |
This helps customers understand the seriousness of the situation and motivates earlier payment.
## Adding Collection Fees
You can add a collection fee at any stage, though it's most common at Stage 3.
1. Open the case detail page
2. Find the **Amount Breakdown** section
3. Enter the collection fee amount
4. Click **Update Fee**
The fee is immediately reflected:
* In the case total
* On the customer portal
* On the payment page
* In postal letters and email reminders
In the Netherlands, collection fee guidelines (WIK/BIK) suggest fees proportional to the original amount. For example, up to 15% on the first EUR 2,500. Check your local regulations.
## Manual Escalation
To manually move a case to the next stage:
1. Open the case detail page
2. Click the **Escalate** button in the case header
3. The case moves to the next stage immediately
4. You can then send a reminder with the new stage's messaging
Escalation cannot be reversed. Once a case moves to the next stage, it stays there. Make sure you're ready before escalating.
## Automatic Escalation
PayRequest can automatically escalate cases based on how many days they've been overdue. This runs daily and processes all active cases.
**Default schedule:**
| Days Overdue | Action |
| ------------ | ------------------------------------- |
| 14+ days | Stage 0 → Stage 1 (Friendly Reminder) |
| 14+ days | Stage 1 → Stage 2 (Formal Notice) |
| 28+ days | Stage 2 → Stage 3 (Collection Fees) |
| 42+ days | Stage 3 → Stage 4 (Final Warning) |
When a case is automatically escalated:
* The stage is updated
* A reminder email is sent to the customer
* A postal letter is sent (if Pingen is configured, at Stage 2+)
* The escalation is logged in the activity timeline
Automatic escalation only runs for **active** cases. Paused cases, cases with payment plans, paid cases, and closed cases are all skipped. When you resume a paused case, it catches up automatically if enough time has passed.
## Sending Reminders
At any stage, you can send a reminder to the customer:
### Email Reminders
Click **Send Reminder** on the case detail page to send an email. The email content automatically matches the current stage — no need to write the message yourself.
### Postal Letters
Click **Send Postal Letter** to mail a physical letter via Pingen. The letter includes your business details, the customer's address, the amount breakdown, and a QR code for quick payment. See [Postal Letters](/debt-collection/postal-letters) for details.
## Resolving Cases
A case can be resolved in several ways:
| Resolution | How It Happens |
| -------------------------- | ----------------------------------------------------------------- |
| **Paid** | Customer pays the full amount (auto-detected via payment webhook) |
| **Manual Payments** | You register partial payments until the balance is covered |
| **Remission** | You register partial payment(s) then waive the remaining balance |
| **Payment Plan Completed** | All installments paid (auto-closed) |
| **Manually Closed** | You close the case from the dashboard |
| **Cancelled** | You cancel the case with a reason |
## Best Practices
Don't escalate too quickly. Allow at least 14 days between stages so customers have a realistic chance to arrange payment.
Customers need to know their case has been escalated. Always send a reminder (email or postal) when moving to a new stage.
Physical letters carry more weight than emails. Starting postal communication at Stage 2 (Formal Notice) shows you're serious about recovery.
Before reaching the Final Warning, consider offering a payment plan. Collecting in installments is usually better than not collecting at all.
Document any phone calls, customer responses, or agreements in the case's internal notes. This creates a clear record if you need to involve a legal advisor later.
## Related Documentation
How to open a new collection case
Set up installment plans for customers
Send physical letters via Pingen
Back to the overview