In subscription settings, collection_method allows you to choose between...

In subscription settings, collection_method allows you to choose between...

• A. Automatically charging the default payment method.
• B. Automatically charging the default payment method or emailing an invoice to pay manually.
• C. Generating refunds automatically.
• D. Setting a dynamic tax rate.

Answer: (B)

collection_method controls how Stripe collects payment for a subscription. There are two flows you can choose from: automatically charging the customer’s default payment method on each billing cycle, or creating and sending an invoice that the customer pays manually. The automatic charging flow is seamless for customers with a valid card on file and is ideal for standard recurring charges. The invoice flow is useful when you need payment terms or prefer to have the customer pay after receiving an invoice. This setting doesn’t involve automatic refunds or dynamic tax rate changes; those are separate features handled elsewhere.

collection_method controls how Stripe collects payment for a subscription. There are two flows you can choose from: automatically charging the customer’s default payment method on each billing cycle, or creating and sending an invoice that the customer pays manually. The automatic charging flow is seamless for customers with a valid card on file and is ideal for standard recurring charges. The invoice flow is useful when you need payment terms or prefer to have the customer pay after receiving an invoice. This setting doesn’t involve automatic refunds or dynamic tax rate changes; those are separate features handled elsewhere.