Unable to create a subscription: "Cannot create the subscription as there is no valid card on file". How do I proceed?

This article covers:

Offline Payments

Add to Unbilled Charges

Summary

When creating a subscription with Auto Collection "ON" (default value) and no payment details is when the system will return the Error "Cannot create the subscription as there is no valid card on file".

Chargebee uses an Advance billing model, billing for the period a head. So when an invoice is raised or a subscription is created with charges that are immediately applicable, Chargebee will try to collect the payment before the subscription is actually created and if this payment fails (for any reason), the subscription creation will not proceed.

Note: If you are using our Hosted Checkout Page, the subscriptions are created with Auto Collection status as ON.

       If you are creating subscription maually through the UI or APIs you can choose to turn OFF the auto collection.

Soution

If your workflow requires that you not collect payment details upfront, there are two options to resolve this error:

1) Turn Auto Collection OFF

When Auto Collection is turned OFF for a subscription, Chargebee understands that this subscription's payment will be made offline (cash, bank transfer). So Chargebee will not try to collect payment for the invoice(Payment Due) and the subscription will be created.

2) Select "Add to Unbilled Charges" under Invoicing options

This option allows you to add the amount for the first subscription to the invoice of the second term. Since there is no immediate payment to collect, the subscription will be created. You can collect the payment details before the next renewal.