diff --git a/server/src/internal/customers/add-product/handleCreateCheckout.ts b/server/src/internal/customers/add-product/handleCreateCheckout.ts
index dab338416..6900aa9d5 100644
--- a/server/src/internal/customers/add-product/handleCreateCheckout.ts
+++ b/server/src/internal/customers/add-product/handleCreateCheckout.ts
@@ -12,7 +12,7 @@ import { ErrCode } from "@/errors/errCodes.js";
 import { getNextStartOfMonthUnix } from "@/internal/products/prices/billingIntervalUtils.js";
 import { APIVersion } from "@autumn/shared";
 import { SuccessCode } from "@autumn/shared";
-import { notNullish, nullish } from "@/utils/genUtils.js";
+import { notNullish } from "@/utils/genUtils.js";
 
 import Stripe from "stripe";
 
@@ -48,7 +48,6 @@ export const handleCreateCheckout = async ({
     });
   }
 
-  // Handle first item set
   const { items } = itemSets[0];
 
   attachParams.itemSets = itemSets;
@@ -96,7 +95,14 @@ export const handleCreateCheckout = async ({
     };
   }
 
-  const checkout = await stripeCli.checkout.sessions.create({
+  // Prepare checkout session parameters
+  let checkout;
+
+  let paymentMethodSet =
+    notNullish(checkoutParams.payment_method_types) ||
+    notNullish(checkoutParams.payment_method_configuration);
+
+  const sessionParams = {
     customer: customer.processor.id,
     line_items: items,
     subscription_data: subscriptionData,
@@ -108,21 +114,36 @@ export const handleCreateCheckout = async ({
       ...(attachParams.metadata ? attachParams.metadata : {}),
     },
     allow_promotion_codes: allowPromotionCodes,
+    invoice_creation: !isRecurring ? { enabled: true } : undefined,
+    saved_payment_method_options: { payment_method_save: "enabled" },
     ...rewardData,
-    invoice_creation: !isRecurring
-      ? {
-          enabled: true,
-        }
-      : undefined,
-
-    saved_payment_method_options: {
-      payment_method_save: "enabled",
-    },
-
     ...(attachParams.checkoutSessionParams || {}),
-  });
+  };
 
-  logger.info(`✅ Successfully created checkout for customer ${customer.id}`);
+  try {
+    checkout = await stripeCli.checkout.sessions.create(sessionParams);
+    logger.info(
+      `✅ Successfully created checkout for customer ${customer.id || customer.internal_id}`
+    );
+  } catch (error: any) {
+    let msg = error.message;
+    if (
+      msg &&
+      msg.includes("No valid payment method types") &&
+      !paymentMethodSet
+    ) {
+      checkout = await stripeCli.checkout.sessions.create({
+        ...sessionParams,
+        payment_method_types: ["card"],
+      });
+
+      logger.info(
+        `✅ Created fallback checkout session with card payment method for customer ${customer.id || customer.internal_id}`
+      );
+    } else {
+      throw error;
+    }
+  }
 
   if (returnCheckout) {
     return checkout;
diff --git a/server/src/internal/customers/attach/handleSetupPayment.ts b/server/src/internal/customers/attach/handleSetupPayment.ts
index cd9380fb0..a66cc2c50 100644
--- a/server/src/internal/customers/attach/handleSetupPayment.ts
+++ b/server/src/internal/customers/attach/handleSetupPayment.ts
@@ -1,8 +1,10 @@
 import { routeHandler } from "@/utils/routerUtils.js";
 import { getOrCreateCustomer } from "../cusUtils/getOrCreateCustomer.js";
-import { ExtendedRequest, ExtendedResponse } from "@/utils/models/Request.js";
+import { ExtendedRequest } from "@/utils/models/Request.js";
 import { createStripeCusIfNotExists } from "@/external/stripe/stripeCusUtils.js";
 import { createStripeCli } from "@/external/stripe/utils.js";
+import RecaseError from "@/utils/errorUtils.js";
+import { ErrCode } from "@/errors/errCodes.js";
 
 export const handleSetupPayment = async (req: any, res: any) =>
   routeHandler({
@@ -10,8 +12,8 @@ export const handleSetupPayment = async (req: any, res: any) =>
     res,
     action: "setup_payment",
     handler: async (req: ExtendedRequest, res: any) => {
-      // 1. Get the customer
       const { db, env, org } = req;
+      const logger = req.logger;
 
       let { customer_id, customer_data, success_url, checkout_session_params } =
         req.body;
@@ -31,17 +33,73 @@ export const handleSetupPayment = async (req: any, res: any) =>
       });
 
       const stripeCli = createStripeCli({ org, env });
-      const session = await stripeCli.checkout.sessions.create({
+
+      // check if user already specified payment methods in their request
+      const hasUserSpecifiedPaymentMethods = 
+        checkout_session_params && checkout_session_params.payment_method_types;
+
+      const sessionParams = {
         customer: customer.processor?.id,
         mode: "setup",
         success_url: success_url || org.stripe_config?.success_url,
         currency: org.default_currency || "usd",
         ...(checkout_session_params as any),
-      });
+      };
 
-      return res.json({
-        customer_id: customer.id,
-        url: session.url,
-      });
+      try {
+        // let stripe automatically determine payment methods
+        const session = await stripeCli.checkout.sessions.create(sessionParams);
+        return res.json({
+          customer_id: customer.id,
+          url: session.url,
+        });
+      } catch (error: any) {
+        // payment method errors
+        if (error.message && 
+            (error.message.includes("payment method") || 
+             error.message.includes("No valid payment"))) {
+          
+          logger.warn("Stripe checkout session creation failed", {
+            customerId: customer.id,
+            error: error.message,
+          });
+
+          if (hasUserSpecifiedPaymentMethods) {
+            throw error;
+          }
+
+          try {
+            // card payment method fallback
+            const fallbackSession = await stripeCli.checkout.sessions.create({
+              ...sessionParams,
+              payment_method_types: ["card"],
+            });
+
+            logger.info("Created checkout session with card payment method", {
+              customerId: customer.id,
+            });
+
+            return res.json({
+              customer_id: customer.id,
+              url: fallbackSession.url,
+            });
+          } catch (fallbackError: any) {
+            // if fallback failed
+            logger.error("Failed to create checkout session even with card payment method", {
+              customerId: customer.id,
+              error: fallbackError.message,
+            });
+            
+            throw new RecaseError({
+              code: ErrCode.InvalidRequest,
+              message: "Unable to create checkout session. Please ensure you have activated card payment method in your Stripe dashboard.",
+              statusCode: 400,
+            });
+          }
+        }
+        
+        // Re-throw errors
+        throw error;
+      }
     },
   });