diff --git a/backend/src/features/subscriptions/api/subscriptions.controller.ts b/backend/src/features/subscriptions/api/subscriptions.controller.ts
index 36616c1..e4c6f70 100644
--- a/backend/src/features/subscriptions/api/subscriptions.controller.ts
+++ b/backend/src/features/subscriptions/api/subscriptions.controller.ts
@@ -134,7 +134,8 @@ export class SubscriptionsController {
         userId,
         tier,
         billingCycle,
-        paymentMethodId || ''
+        paymentMethodId || '',
+        email
       );
 
       reply.status(200).send(updatedSubscription);
@@ -207,6 +208,7 @@ export class SubscriptionsController {
   ): Promise<void> {
     try {
       const userId = (request as any).user.sub;
+      const email = (request as any).user.email;
       const { paymentMethodId } = request.body;
 
       // Validate input
@@ -218,19 +220,8 @@ export class SubscriptionsController {
         return;
       }
 
-      // Get subscription
-      const subscription = await this.service.getSubscription(userId);
-      if (!subscription) {
-        reply.status(404).send({
-          error: 'Subscription not found',
-          message: 'No subscription exists for this user',
-        });
-        return;
-      }
-
-      // Update payment method via Stripe
-      const stripeClient = new StripeClient();
-      await stripeClient.updatePaymentMethod(subscription.stripeCustomerId, paymentMethodId);
+      // Update payment method via service (handles admin_override_ customer IDs)
+      await this.service.updatePaymentMethod(userId, paymentMethodId, email);
 
       reply.status(200).send({
         message: 'Payment method updated successfully',
diff --git a/backend/src/features/subscriptions/data/subscriptions.repository.ts b/backend/src/features/subscriptions/data/subscriptions.repository.ts
index 747820e..23e83dd 100644
--- a/backend/src/features/subscriptions/data/subscriptions.repository.ts
+++ b/backend/src/features/subscriptions/data/subscriptions.repository.ts
@@ -146,6 +146,10 @@ export class SubscriptionsRepository {
     const values = [];
     let paramCount = 1;
 
+    if (data.stripeCustomerId !== undefined) {
+      fields.push(`stripe_customer_id = $${paramCount++}`);
+      values.push(data.stripeCustomerId);
+    }
     if (data.stripeSubscriptionId !== undefined) {
       fields.push(`stripe_subscription_id = $${paramCount++}`);
       values.push(data.stripeSubscriptionId);
diff --git a/backend/src/features/subscriptions/domain/subscriptions.service.ts b/backend/src/features/subscriptions/domain/subscriptions.service.ts
index fc13873..9e5fffe 100644
--- a/backend/src/features/subscriptions/domain/subscriptions.service.ts
+++ b/backend/src/features/subscriptions/domain/subscriptions.service.ts
@@ -165,6 +165,38 @@ export class SubscriptionsService {
     }
   }
 
+  /**
+   * Resolve admin_override_ placeholder customer IDs to real Stripe customers.
+   * When an admin overrides a user's tier without Stripe, a placeholder ID is stored.
+   * This method creates a real Stripe customer and updates the subscription record.
+   */
+  private async resolveStripeCustomerId(
+    subscription: Subscription,
+    email: string
+  ): Promise<string> {
+    if (!subscription.stripeCustomerId.startsWith('admin_override_')) {
+      return subscription.stripeCustomerId;
+    }
+
+    logger.info('Replacing admin_override_ placeholder with real Stripe customer', {
+      subscriptionId: subscription.id,
+      userId: subscription.userId,
+    });
+
+    const stripeCustomer = await this.stripeClient.createCustomer(email);
+
+    await this.repository.update(subscription.id, {
+      stripeCustomerId: stripeCustomer.id,
+    });
+
+    logger.info('Stripe customer created for admin-overridden subscription', {
+      subscriptionId: subscription.id,
+      stripeCustomerId: stripeCustomer.id,
+    });
+
+    return stripeCustomer.id;
+  }
+
   /**
    * Upgrade from current tier to new tier
    */
@@ -172,7 +204,8 @@ export class SubscriptionsService {
     userId: string,
     newTier: 'pro' | 'enterprise',
     billingCycle: 'monthly' | 'yearly',
-    paymentMethodId: string
+    paymentMethodId: string,
+    email: string
   ): Promise<Subscription> {
     try {
       logger.info('Upgrading subscription', { userId, newTier, billingCycle });
@@ -183,12 +216,15 @@ export class SubscriptionsService {
         throw new Error('No subscription found for user');
       }
 
+      // Resolve admin_override_ placeholder to real Stripe customer if needed
+      const stripeCustomerId = await this.resolveStripeCustomerId(currentSubscription, email);
+
       // Determine price ID from environment variables
       const priceId = this.getPriceId(newTier, billingCycle);
 
       // Create or update Stripe subscription
       const stripeSubscription = await this.stripeClient.createSubscription(
-        currentSubscription.stripeCustomerId,
+        stripeCustomerId,
         priceId,
         paymentMethodId
       );
@@ -923,6 +959,19 @@ export class SubscriptionsService {
     }
   }
 
+  /**
+   * Update payment method for a user's subscription
+   */
+  async updatePaymentMethod(userId: string, paymentMethodId: string, email: string): Promise<void> {
+    const subscription = await this.repository.findByUserId(userId);
+    if (!subscription) {
+      throw new Error('No subscription found for user');
+    }
+
+    const stripeCustomerId = await this.resolveStripeCustomerId(subscription, email);
+    await this.stripeClient.updatePaymentMethod(stripeCustomerId, paymentMethodId);
+  }
+
   /**
    * Get invoices for a user's subscription
    */
diff --git a/backend/src/features/subscriptions/domain/subscriptions.types.ts b/backend/src/features/subscriptions/domain/subscriptions.types.ts
index 1d6ca83..7c34020 100644
--- a/backend/src/features/subscriptions/domain/subscriptions.types.ts
+++ b/backend/src/features/subscriptions/domain/subscriptions.types.ts
@@ -118,6 +118,7 @@ export interface CreateTierVehicleSelectionRequest {
 
 // Service layer types
 export interface UpdateSubscriptionData {
+  stripeCustomerId?: string;
   stripeSubscriptionId?: string;
   tier?: SubscriptionTier;
   billingCycle?: BillingCycle;