Short answer
Read the invoice’s last_finalization_error to see the reason. Then give the invoice at least one payment method that works for its currency, amount and collection method: activate more payment methods in the Dashboard, widen the invoice template, or set payment_settings.payment_method_types on the invoice, and include any default payment method saved on the customer or subscription. Finalize again.
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Why Stripe can’t find a payment method for the invoice, and the fix
01
Every enabled method has a restriction
“Stripe attempts to automatically select payment methods, but all of the payment methods have restrictions that prevent them from being used” Stripe, Invoicing payment methods
A payment method might only work in one currency or have amount limits. When only one or two methods are enabled, all of them can be ruled out for a given invoice, and Stripe won’t pick one for you.
02
payment_settings lists a method that can’t be used
“be sure to include it in the list of payment_method_types. Otherwise, the payment will fail.” Stripe, Invoicing payment methods
An explicit payment_method_types list overrides the template. If the only method listed doesn’t fit the invoice, finalization fails. Include the type of any default payment method saved on the customer or subscription, or the payment will fail.
await stripe.invoices.update(invoiceId, { payment_settings: { payment_method_types: ['card', 'customer_balance'] }, });03
The method only supports send_invoice
“Invoices that use this payment method only support the send_invoice collection method.” Stripe, Invoicing payment methods
Some methods, such as bank transfer, Affirm and Afterpay/Clearpay, can only be added to individual invoices that use the send_invoice collection method, so they can’t be used on an invoice that uses the charge_automatically collection method.
04
Fix the invoice that already failed
“To finalize the invoice and complete the payment, change the payment_settings for the invoice so that it has at least one valid payment method.” Stripe, Invoicing payment methods
Open the failed invoice and read its last_finalization_error. Stripe sends an invoice.finalization_failed webhook when finalization fails, so a handler for that event is where to catch it.
Checked against the vendor’s docs on : Stripe docs: Error codes; Stripe docs: Invoicing payment methods.
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Related: Stripe invoice_no_customer_line_items · Stripe payment_method_unactivated · Stripe invoice not editable · Stripe no default payment method