How do I prevent automatic VBA creation while using SEPA Credit Transfer?

When using Chargebee with Stripe as your payment gateway, SEPA Credit Transfer is a supported payment method. By default, Stripe automatically generates Virtual Bank Accounts (VBAs) when invoices are created.

If you're managing VBAs manually or integrating with a custom CRM system, this automatic behavior can lead to conflicts. This article explains how to prevent automatic VBA creation while continuing to support SEPA Credit Transfer.

Use Cases

You may need this configuration if you are:

• Manually managing VBAs in Chargebee when using Stripe.
• Using SEPA Credit Transfer but want to prevent automatic VBA creation.
• Integrating a custom CRM that handles VBAs or invoice logic.
• Using a Multi-Business Entity setup with multiple Stripe accounts (for example, US and EU Bank Transfer) and need to prevent VBAs from being automatically created based on invoice currency.

Solution Overview

To disable automatic VBA creation while retaining SEPA Credit Transfer:

1. Request a Custom Setting

   • Contact Chargebee Support to enable a custom setting on your site that prevents Stripe from automatically creating VBAs.
   • This setting is not available by default and requires intervention from Chargebee Support.
   • Be sure to test this setting in a sandbox before applying it to your production site.

2. Test the Setting in a Sandbox

   • Implement the custom setting in a test environment to verify that it behaves as expected.
   • Confirm that SEPA Credit Transfer still works as a payment method.

3. Apply to Your Live Site

   • Once confirmed in testing, request Chargebee Support to apply the custom setting to your live environment.
   • Monitor your integration to ensure compatibility with your CRM system or manual VBA workflows.

Important Notes

Follow these considerations when implementing this change:

• Custom Setting Required: This feature is not part of Chargebee’s standard configuration and must be enabled by Chargebee Support.
• Test Before Launch: Always validate changes in a test environment to prevent disruptions in live billing or CRM processes.
• Support Involvement: Direct assistance from Chargebee Support is necessary to implement and deploy this setting.
• Integration Compatibility: Ensure your CRM and manual VBA processes are compatible with this change to avoid data conflicts or automation issues.

By following these steps, you can retain SEPA Credit Transfer as a payment method without triggering automatic VBA creation—helping you maintain full control over your payment workflows and system integrations.

Multi-Entity Setup: Controlling VBA Creation per Entity

If you are using Automated Bank Transfer via Stripe in a Multi-Business Entity setup (for example, one entity for US Bank Transfer and another for EU Bank Transfer), you may find that VBAs are being auto-created in a way that doesn't align with your entity structure.

Why this happens

VBA type (US, EU, UK, etc.) is determined by the invoice currency — not the business entity the customer belongs to. A USD invoice produces a US Bank Transfer VBA; a EUR invoice produces an EU Bank Transfer VBA. The customer's billing address country is then checked for eligibility: for USD invoices the billing country must be US; for EUR invoices it must be in the supported SEPA region. Entity-level offline payment settings do not influence this behavior.

Recommended approach

1. Disable automatic VBA creation — Contact Chargebee Support to enable the DISABLE_AUTOMATIC_VBA_CREATION site-level setting, which prevents Chargebee from automatically creating VBAs on invoice generation. Apply and verify this in your sandbox before enabling it on your live site.
2. Create VBAs manually via API — Once automatic creation is disabled, use the Create Virtual Bank Account API to create VBAs of the correct regional type for each customer based on your business requirements.

Points to note

• The DISABLE_AUTOMATIC_VBA_CREATION setting is site-wide and applies across all entities.
• Manual VBA creation via API gives you full control over which regional bank transfer type is assigned to each customer.
• Contact Chargebee Support for assistance enabling this configuration.