How to recover a failed invoice when no payment method is on file

Last updated: June 30, 2026

When a finalized invoice has a failed payment status and the customer has no usable payment method on file, there is no automatic recovery. To collect, either send the customer a hosted checkout link, or attach a payment method to their record and retry.

How it works

Lago attempts payment automatically on finalized invoices, but only when the customer is connected to a payment provider (Stripe, Adyen, and similar). A few things to know before you share a link:

  • The customer must be connected to a provider, not just have a provider name selected. If they aren't connected, connect one first using option 2.

  • Payment links are not available for GoCardless. For GoCardless customers, use option 2.

  • If no provider is connected, Lago does not attempt payment, so the invoice stays unpaid rather than moving to failed.

How to resolve the issue

Option 1 - Share a checkout link (easiest): Generate a hosted payment link and send it to the customer. Once they pay, Lago marks the invoice as paid and saves the method for future invoices.

  1. Open the failed invoice from the Invoices list, the customer's invoice tab, or the invoice detail page.

  2. Click the ⋯ menu or the Actions button.

  3. Select Open payment link, then copy the URL and share it.

Option 2 - Attach a payment method and retry: Add the customer's payment information under Edit customer, then Connect to external apps, then Payment provider. Once connected, retry the invoice from the invoice detail page.

How to prevent this from happening again

Have customers complete payment method setup before invoices are finalized. Triggering the checkout flow during onboarding collects a method ahead of the first invoice.

This article reflects guidance drawn from customer case resolutions. It is not officially supported documentation and may not apply to all situations.