n8n Workflow: Run Lago Bounded Dunning & Email Alerts

Automate Lago dunning with automatic retries and billing email alerts (in n8n)

This n8n workflow listens for verified, deduplicated payment webhooks from Lago, automatically retries failed invoice collections up to three times, tracks dunning state in an n8n Data Table, and sends plain-text email alerts when billing action is needed—or when a payment is recovered.

What this workflow does

• Receives payment webhooks from Lago via a webhook trigger, using verified and deduplicated events.
• Normalizes the payload to extract the invoice ID, customer identifiers, payment status, and the recommended handling action.
• Retries failed collections (max 3 attempts):
  • Fetches the invoice and customer from Lago.
  • Loads the current retry count from an n8n Data Table.
  • If the invoice is still unpaid and the 3-attempt cap hasn’t been reached, it retries the invoice payment in Lago.
• Persists durable dunning state in the Data Table (e.g., retry requested vs. manual review required) and prepares a billing notification.
• Handles customer authentication-required events by preserving the retry count and including the payment action URL in the alert.
• Marks recovered payments in the Data Table while retaining the accumulated retry count.
• Sends plain-text emails to the billing address for retry, manual review, customer action required, and recovery outcomes.

Use cases

• Reduce involuntary churn by automatically retrying Lago invoice collections after payment failures.
• Route billing issues to your team when manual review is required after three unsuccessful attempts.
• Send targeted alerts when customers must authenticate via a payment action URL.
• Confirm recovery automatically and keep your dunning history consistent using an n8n Data Table.

Technical details

• Lago webhook trigger (verified and deduplicated events)
• Nodes: if, set, code, switch, Data Table, email send
• Requires: Lago API credentials for the trigger and Lago nodes (get invoices/customers, retry payments), plus an SMTP credential for sending email