diff --git a/alert-failed-charges.ts b/alert-failed-charges.ts
new file mode 100644
index 0000000..cfc00c0
--- /dev/null
+++ b/alert-failed-charges.ts
@@ -0,0 +1,200 @@
+import { Config, loadConfig } from './config';
+import * as fs from 'fs';
+import * as path from 'path';
+import * as readline from 'readline';
+
+export interface ChargeResult {
+  id: string;
+  subscriberId: string;
+  amount: number;
+  currency: string;
+  status: 'succeeded' | 'failed';
+  failureReason?: string;
+  failureCode?: string;
+  createdAt: string;
+}
+
+export interface Alert {
+  subscriberId: string;
+  reason: string;
+  chargeId: string;
+  amount: number;
+  currency: string;
+  createdAt: string;
+}
+
+interface DedupState {
+  lastSent: Record<string, string>;
+  sentTimestamps: Record<string, string[]>;
+}
+
+function getKey(alert: Alert): string {
+  return `${alert.subscriberId}:${alert.reason}`;
+}
+
+function loadState(filePath?: string): DedupState {
+  const empty: DedupState = { lastSent: { }, sentTimestamps: { } };
+  if (!filePath) return empty;
+  try {
+    const raw = fs.readFileSync(filePath, 'utf8');
+    const parsed = JSON.parse(raw);
+    return {
+      lastSent: parsed.lastSent || {},
+      sentTimestamps: parsed.sentTimestamps || {},
+    };
+  } catch (err: any) {
+    // If file doesn't exist or is invalid, start fresh.
+    return empty;
+  }
+}
+
+function saveState(filePath: string, state: DedupState): void {
+  fs.writeFileSync(filePath, JSON.stringify(state, null, 2));
+}
+
+function isWithinWindow(timestamp: string, now: Date, windowMs: number): boolean {
+  const t = new Date(timestamp).getTime();
+  return now.getTime() - t <= windowMs;
+}
+
+function shouldSendAlert(state: DedupState, alert: Alert, config: Config, now: Date): boolean {
+  const key = getKey(alert);
+  const last = state.lastSent[key];
+  if (last && isWithinWindow(last, now, config.dedupWindowMs)) {
+    return false; // Deduplicated
+  }
+
+  // Rate-limit per subscriber
+  const sentTimes = state.sentTimestamps[alert.subscriberId] || [];
+  const recentTimes = sentTimes.filter(t => isWithinWindow(t, now, config.dedupWindowMs));
+  if (recentTimes.length >= config.maxAlertsPerSubscriber) {
+    return false;
+  }
+
+  return true;
+}
+
+function markAlertSent(state: DedupState, alert: Alert, now: Date): void {
+  const key = getKey(alert);
+  state.lastSent[key] = now.toISOString();
+
+  if (!state.sentTimestamps[alert.subscriberId]) {
+    state.sentTimestamps[alert.subscriberId] = [];
+  }
+  state.sentTimestamps[alert.subscriberId].push(now.toISOString());
+}
+
+/**
+ * Builds webhook payload grouped by reason.
+ */
+export function buildPayload(alerts: Alert[]): unknown {
+  const groups: Record<string, { count: number; alerts: Alert[] }> = {};
+  for (const alert of alerts) {
+    if (!groups[alert.reason]) {
+      groups[alert.reason] = { count: 0, alerts: [] };
+    }
+    groups[alert.reason].count++;
+    groups[alert.reason].alerts.push(alert);
+  }
+  return {
+    event: 'failed_charges',
+    timestamp: new Date().toISOString(),
+    groups,
+  };
+}
+
+/**
+ * Sends the webhook payload. If no URL is configured, logs it.
+ */
+async function sendWebhook(url: string, payload: unknown): Promise<void> {
+  if (!url) {
+    console.log('Webhook URL not set. Payload:');
+    console.log(JSON.stringify(payload, null, 2));
+    return;
+  }
+
+  const response = await fetch(url, {
+    method: 'POST',
+    headers: { 'Content-Type': 'application/json' },
+    body: JSON.stringify(payload),
+  });
+
+  if (!response.ok) {
+    throw new Error(`Webhook failed with status ${response.status}`);
+  }
+}
+
+/**
+ * Reads batch results from a file or stdin.
+ */
+async function readInput(filePath?: string): Promise<ChargeResult[]> {
+  let raw: string;
+  if (filePath) {
+    raw = fs.readFileSync(filePath, 'utf8');
+  } else {
+    const rl = readline.createInterface({ input: process.stdin });
+    raw = await new Promise<string>((resolve) => {
+      let data = '';
+      rl.on('line', (line) => { data += line; });
+      rl.on('close', () => resolve(data));
+    });
+  }
+  return JSON.parse(raw) as ChargeResult[];
+}
+
+/**
+ * Classifies failed charges into alerts grouped by reason.
+ */
+export function classifyFailures(results: ChargeResult[]): Alert[] {
+  const alerts: Alert[] = [];
+  for (const result of results) {
+    if (result.status !== 'failed') continue;
+    const reason = result.failureReason || result.failureCode || 'unknown';
+    alerts.push({
+      subscriberId: result.subscriberId,
+      reason,
+      chargeId: result.id,
+      amount: result.amount,
+      currency: result.currency,
+      createdAt: result.createdAt,
+    });
+  }
+  return alerts;
+}
+
+/**
+ * Main entry point.
+ */
+export async function main(): Promise<void> {
+  const config = loadConfig();
+  const results = await readInput(config.inputFile);
+  const alerts = classifyFailures(results);
+
+  const state = loadState(config.stateFilePath);
+  const now = new Date();
+
+  const toSend: Alert[] = [];
+  for (const alert of alerts) {
+    if (shouldSendAlert(state, alert, config, now)) {
+      toSend.push(alert);
+      markAlertSent(state, alert, now);
+    }
+  }
+
+  if (toSend.length > 0) {
+    const payload = buildPayload(toSend);
+    await sendWebhook(config.webhookUrl, payload);
+  }
+
+  if (config.stateFilePath) {
+    saveState(config.stateFilePath, state);
+  }
+}
+
+// Run only when executed directly
+if (require.main === module) {
+  main().catch((err) => {
+    console.error(err);
+    process.exit(1);
+  });
+}
\ No newline at end of file
diff --git a/config.ts b/config.ts
index 2fe3cfb..fe59bf5 100644
--- a/config.ts
+++ b/config.ts
@@ -1,3 +1,32 @@
+/**
+ * Configuration for the alert-failed-charges script.
+ * Reads environment variables.
+ */
+export interface Config {
+  /** Webhook URL to POST alerts to. If empty, alerts are logged instead. */
+  webhookUrl: string;
+  /** Dedup window in milliseconds. Alerts for the same subscriber+reason are suppressed within this window. */
+  dedupWindowMs: number;
+  /** Maximum number of alerts sent per subscriber within the dedup window. */
+  maxAlertsPerSubscriber: number;
+  /** Path to state file for dedup persistence. If not set, dedup is in-memory only. */
+  stateFilePath?: string;
+  /** Path to the batch results JSON file. If not set, reads from stdin. */
+  inputFile?: string;
+}
+
+/**
+ * Loads configuration from environment variables with defaults.
+ */
+export function loadConfig(env: NodeJS.ProcessEnv = process.env): Config {
+  return {
+    webhookUrl: env.WEBHOOK_URL || '',
+    dedupWindowMs: Number(env.DEDUP_WINDOW_MS || 3600000),
+    maxAlertsPerSubscriber: Number(env.MAX_ALERTS_PER_SUBSCRIBER || 5),
+    stateFilePath: env.STATE_FILE_PATH,
+    inputFile: env.INPUT_FILE,
+  };
+}
 import * as dotenv from 'dotenv';
 import { Keypair } from 'stellar-sdk';
 
diff --git a/package.json b/package.json
index 41e5071..40eeb1e 100644
--- a/package.json
+++ b/package.json
@@ -5,6 +5,7 @@
   "scripts": {
     "prepare": "husky",
     "build:frontend": "cd frontend && npm ci && npm run build",
+    "typecheck": "cd frontend && npm ci && npm exec-- tsc --noEmit",
     "typecheck": "cd frontend && ./node_modules/.bin/tsc --noEmit",
     "typecheck:scripts": "cd scripts && npx tsc --noEmit",
     "test:scripts": "cd scripts && npm install --prefer-offline && npm test",
@@ -12,15 +13,19 @@
     "audit:contrast": "npm run typecheck",
     "backend:typecheck": "cd contract && cargo check",
     "backend:test": "cd contract && cargo test",
-    "generate:types": "bash scripts/generate-types.sh"
+    "generate:types": "bash scripts/generate-types.sh",
+    "test": "tsx --test tests/*.test.ts"
   },
   "devDependencies": {
+    "@types/node": "^20.16.0",
     "husky": "^9.1.7",
-    "lint-staged": "^15.5.2"
+    "lint-staged": "^15.5.2",
+    "tsx": "^4.19.0",
+    "typescript": "^5.6.3"
   },
   "lint-staged": {
-    "frontend/src/**/*.{ts,tsx}": [
+    "frontend/src/**/*.ts,.tsx": [
       "bash -c 'cd frontend && npx tsc --noEmit'"
     ]
   }
-}
+}
\ No newline at end of file
diff --git a/tests/alert-failed-charges.test.ts b/tests/alert-failed-charges.test.ts
new file mode 100644
index 0000000..9e8e95f
--- /dev/null
+++ b/tests/alert-failed-charges.test.ts
@@ -0,0 +1,89 @@
+import { describe, it, mock } from 'node:test';
+import assert from 'node:assert/strict';
+import * as fs from 'node:fs';
+import * as path from 'node:path';
+import { classifyFailures, buildPayload, shouldSendAlert, markAlertSent, main } from '../alert-failed-charges';
+import { loadConfig } from '../config';
+
+function loadFixture(name: string): any {
+  return JSON.parse(fs.readFileSync(path.join(__dirname, 'fixtures', name), 'utf8'));
+}
+
+describe('classifyFailures', () => {
+  it('groups failed charges by reason', () => {
+    const results = [
+      { id: 'ch_1', subscriberId: 'sub_1', amount: 10, currency: 'usd', status: 'failed', failureReason: 'insufficient_funds', createdAt: '2024-01-01T00:00:00Z' },
+      { id: 'ch_2', subscriberId: 'sub_2', amount: 20, currency: 'usd', status: 'failed', failureReason: 'card_declined', createdAt: '2024-01-01T00:00:00Z' },
+      { id: 'ch_3', subscriberId: 'sub_1', amount: 30, currency: 'usd', status: 'failed', failureReason: 'insufficient_funds', createdAt: '2024-01-01T00:00:00Z' },
+      { id: 'ch_4', subscriberId: 'sub_3', amount: 40, currency: 'usd', status: 'succeeded', createdAt: '2024-01-01T00:00:00Z' },
+    ];
+    const alerts = classifyFailures(results);
+    assert.equal(alerts.length, 3);
+    const reasons = alerts.map(a => a.reason);
+    assert.deepEqual(reasons.sort(), ['card_declined', 'insufficient_funds', 'insufficient_funds']);
+  });
+});
+
+describe('buildPayload', () => {
+  it('groups alerts by reason', () => {
+    const alerts = [
+      { subscriberId: 'a', reason: 'x', chargeId: 'ch1', amount: 1, currency: 'usd', createdAt: '2024-01-01T00:00:00Z' },
+      { subscriberId: 'b', reason: 'x', chargeId: 'ch2', amount: 2, currency: 'usd', createdAt: '2024-01-01T00:00:00Z' },
+      { subscriberId: 'c', reason: 'y', chargeId: 'ch3', amount: 3, currency: 'usd', createdAt: '2024-01-01T00:00:00Z' },
+    ];
+    const payload = buildPayload(alerts) as any;
+    assert.equal(payload.event, 'failed_charges');
+    assert.equal(payload.groups.x.count, 2);
+    assert.equal(payload.groups.y.count, 1);
+  });
+});
+
+describe('shouldSendAlert', () => {
+  const config = { webhookUrl: 'http://example.com', dedupWindowMs: 3600000, maxAlertsPerSubscriber: 2 } as any;
+  const now = new Date('2024-01-01T12:00:00Z');
+  const alert = { subscriberId: 'sub', reason: 'x', chargeId: 'ch', amount: 1, currency: 'usd', createdAt: '2024-01-01T00:00:00Z' };
+
+  it('allows first alert', () => {
+    const state = { lastSent: {}, sentTimestamps: {} };
+    assert.equal(shouldSendAlert(state, alert, config, now), true);
+  });
+
+  it('deduplicates same subscriber+reason within window', () => {
+    const state = { lastSent: { 'sub:x': now.toISOString() }, sentTimestamps: { sub: [now.toISOString()] } };
+    assert.equal(shouldSendAlert(state, alert, config, now), false);
+  });
+
+  it('rate-limits subscriber after max alerts', () => {
+    const earlier = new Date(now.getTime() - 60000).toISOString();
+    const state = {
+      lastSent: { 'sub:x': earlier },
+      sentTimestamps: {
+        sub: [earlier, earlier], // already 2 within window
+      },
+    };
+    assert.equal(shouldSendAlert(state, alert, config, now), false);
+  });
+});
+
+describe('main with fixture', () => {
+  it('processes fixture and sends webhook', async () => {
+    const fixture = loadFixture('batch-results.json');
+    const fetchMock = mock.fn(async () => new Response(null, { status: 200 }));
+    global.fetch = fetchMock;
+
+    const originalEnv = process.env;
+    process.env = { ...originalEnv, INPUT_FILE: path.join(__dirname, 'fixtures', 'batch-results.json'), WEBHOOK_URL: 'http://test' };
+    try {
+      await main();
+    } finally {
+      process.env = originalEnv;
+      delete (global as any).fetch;
+    }
+
+    assert.equal(fetchMock.mock.calls.length, 1);
+    const [url, options] = fetchMock.mock.calls[0].arguments;
+    assert.equal(url, 'http://test');
+    const payload = JSON.parse((options as RequestInit).body as string);
+    assert.ok(payload.groups);
+  });
+});
\ No newline at end of file
diff --git a/tests/fixtures/batch-results.json b/tests/fixtures/batch-results.json
new file mode 100644
index 0000000..814451c
--- /dev/null
+++ b/tests/fixtures/batch-results.json
@@ -0,0 +1,40 @@
+[
+  {
+    "id": "ch_123",
+    "subscriberId": "sub_1",
+    "amount": 1000,
+    "currency": "usd",
+    "status": "failed",
+    "failureReason": "insufficient_funds",
+    "failureCode": "insufficient_funds",
+    "createdAt": "2024-01-01T00:00:00Z"
+  },
+  {
+    "id": "ch_456",
+    "subscriberId": "sub_2",
+    "amount": 2000,
+    "currency": "usd",
+    "status": "failed",
+    "failureReason": "card_declined",
+    "failureCode": "card_declined",
+    "createdAt": "2024-01-01T00:00:00Z"
+  },
+  {
+    "id": "ch_789",
+    "subscriberId": "sub_1",
+    "amount": 1500,
+    "currency": "usd",
+    "status": "failed",
+    "failureReason": "insufficient_funds",
+    "failureCode": "insufficient_funds",
+    "createdAt": "2024-01-01T00:00:00Z"
+  },
+  {
+    "id": "ch_101",
+    "subscriberId": "sub_3",
+    "amount": 500,
+    "currency": "usd",
+    "status": "succeeded",
+    "createdAt": "2024-01-01T00:00:00Z"
+  }
+]
\ No newline at end of file
diff --git a/tsconfig.json b/tsconfig.json
new file mode 100644
index 0000000..8f0569e
--- /dev/null
+++ b/tsconfig.json
@@ -0,0 +1,13 @@
+{
+  "compilerOptions": {
+    "target": "ES2022",
+    "module": "CommonJS",
+    "moduleResolution": "node",
+    "strict": true,
+    "esModuleInterop": true,
+    "skipLibrCheck": true,
+    "forceConsistentCasingInFileNames": true,
+    "types": ["node"]
+  },
+  "include": ["alert-failed-charges.ts", "config.ts", "tests/**/*.ts"]
+}
\ No newline at end of file