My customer has added a payment method but they are not being charged automatically for payments. Why is this happening?

Problem Statement

This article helps you understand my customer has added a payment method but they are not being charged automatically for payments. why is this happening.This article also covers

How does Auto Collection work

Summary

The Auto Collection status (ON/OFF) determines whether your customers are charged automatically or not. There are two places in which the Auto Collection status can be defined - at the Customer level and at the Subscription level.

For subscriptions, the Auto Collection has 3 different status:

1. Use Customer's default

If this is chosen, depending upon the Auto Collection status at the Customer level, the same status would apply to the Subscription as well.

2. Always On

If set to Always On, irrespective of the Auto Collection status at the Customer level, the customer will still be charged automatically for any invoices associated to the subscription.

3. Always Off

If set to Always Off, then customers will not be automatically charged for any invoice associated to the subscription, and payments will have to be recorded manually against the invoice(s).

Points to remember:

1. At the customer level, the Auto Collection status will automatically change to ON when a payment method is added.
2. Auto collection status at the subscription level overrides the customer level auto collection.
3. It will not be possible to set the Auto Collection status as Always ON at the time of creating the subscription if there is no payment method available.

Solution

In order for the subscription Auto Collection to change to ON automatically when a payment method is added, the Auto Collection needs to be set to Use Customer's default, such that when Auto Collection changes to ON at the customer level, this happens for the subscription as well.

If Auto Collection at the subscription level is set to Always Off, even when a payment method is added, the customers will not automatically be charged via their payment method and any invoice raised for the subscription will remain in the Payment Due status, and the Collect Now option will need to be used to charge the customer's payment method.