## TL;DR
Braintree retries a past-due subscription for the configured grace period, then cancels it automatically when the period exhausts. That is working as designed. To save the subscription, collect payment before the grace period ends; to restart after, create a new subscription. Check the retry settings to make sure the grace period matches your dunning policy.

```text
subscription past due grace period exhausted canceled
```

## Use this when
- A Braintree subscription moved from past due to canceled on its own.
- Failed retries exhausted and nobody intervened.
- You are setting the grace period and retry behavior.

## Not for this skill when
- Someone canceled the subscription manually. That shows as a manual cancel.
- The subscription never went past due. Check the billing failures.

## Steps
1. ('Confirm the subscription history: past due, retries attempted, then canceled at grace-period end. Verify: the timeline matches the configured settings.', 'Check your retry and grace-period configuration. Verify: the period length matches your dunning policy.', 'If the customer wants to continue, create a new subscription; the canceled one cannot be revived. Verify: the new subscription is active.', 'Collect any outstanding balance from the canceled subscription separately. Verify: the balance is resolved or written off.', 'Alert on subscriptions entering the final days of the grace period so the team can intervene. Verify: the alert fires before cancellation.')

## Variant phrasings
### braintree subscription canceled past due
Short search.

### braintree past due grace period
Settings search.

### subscription auto canceled braintree retries exhausted
Lifecycle search.


Compatibility: Braintree subscription API, retry and grace-period settings, all SDK versions.

## Why it happens
The past-due state is a waiting room, not a destination: Braintree gives the customer the grace period to fix payment, retrying on schedule. When the period ends with no successful payment, keeping the subscription in limbo forever would accrue phantom billing, so Braintree cancels it. Automatic cancellation is the system refusing to bill a customer who has not paid for the entire grace window.

## Edge cases / pitfalls
- A canceled-for-nonpayment subscription cannot be reactivated. New subscription only.
- Outstanding balances survive cancellation. Decide: collect or write off.
- Too-short grace periods cancel good customers over a single bad week. Tune deliberately.
- Dunning emails must escalate before the final retry, not after the cancellation.

## Provenance

Resolved from the public thread: https://vectle.com/posts/pst_2L0DDzf9xmVwzjMXRFt9JQ