diff --git a/packages/modules/payment/src/services/payment-module.ts b/packages/modules/payment/src/services/payment-module.ts
index c42f595be8..8390348371 100644
--- a/packages/modules/payment/src/services/payment-module.ts
+++ b/packages/modules/payment/src/services/payment-module.ts
@@ -504,6 +504,11 @@ export default class PaymentModuleService
       status !== PaymentSessionStatus.AUTHORIZED &&
       status !== PaymentSessionStatus.CAPTURED
     ) {
+      await this.paymentSessionService_.update({
+        id: session.id,
+        status,
+        data,
+    }, sharedContext);
       throw new MedusaError(
         MedusaError.Types.NOT_ALLOWED,
         `Session: ${session.id} was not authorized with the provider.`
diff --git a/packages/modules/providers/payment-stripe/src/core/stripe-base.ts b/packages/modules/providers/payment-stripe/src/core/stripe-base.ts
index d079cf0f33..11e239c303 100644
--- a/packages/modules/providers/payment-stripe/src/core/stripe-base.ts
+++ b/packages/modules/providers/payment-stripe/src/core/stripe-base.ts
@@ -1,5 +1,5 @@
 import Stripe from "stripe"
-
+import { setTimeout } from "timers/promises"
 import {
   AuthorizePaymentInput,
   AuthorizePaymentOutput,
@@ -50,6 +50,14 @@ import {
   getSmallestUnit,
 } from "../utils/get-smallest-unit"
 
+type StripeIndeterminateState = {
+  indeterminate_due_to: string,
+}
+type StripeErrorData = Stripe.PaymentIntent | StripeIndeterminateState
+type HandledErrorType =
+  | { retry: true; }
+  | { retry: false; data: StripeErrorData };
+
 abstract class StripeBase extends AbstractPaymentProvider<StripeOptions> {
   protected readonly options_: StripeOptions
   protected stripe_: Stripe
@@ -115,6 +123,87 @@ abstract class StripeBase extends AbstractPaymentProvider<StripeOptions> {
     return res
   }
 
+  handleStripeError(error: any): HandledErrorType {
+    switch (error.type) {
+      case 'StripeCardError':
+        // Stripe has created a payment intent but it failed
+        // Extract and return paymentIntent object to be stored in payment_session
+        // Allows for reference to the failed intent and potential webhook reconciliation
+        const stripeError = error.raw as Stripe.errors.StripeCardError
+        if (stripeError.payment_intent) {
+          return {
+            retry: false,
+            data: stripeError.payment_intent 
+          }
+        } else {
+          throw this.buildError(
+            "An error occurred in InitiatePayment during creation of stripe payment intent",
+            error
+          )
+        }
+
+      case 'StripeConnectionError':
+      case 'StripeRateLimitError':
+        // Connection or rate limit errors indicate an uncertain result
+        // Retry the operation
+        return {
+          retry: true,
+        }
+      case 'StripeAPIError': {
+        // API errors should be treated as indeterminate per Stripe documentation
+        // Rely on webhooks rather than assuming failure
+        return {
+          retry: false,
+          data: {
+            indeterminate_due_to: "stripe_api_error"
+          }
+        }
+      }
+      default:
+        // For all other errors, there was likely an issue creating the session
+        // on Stripe's servers. Throw an error which will trigger cleanup
+        // and deletion of the payment session.
+        throw this.buildError(
+          "An error occurred in InitiatePayment during creation of stripe payment intent",
+          error
+        )
+    }
+  }
+
+  async executeWithRetry<T>(
+    apiCall: () => Promise<T>,
+    maxRetries: number = 3,
+    baseDelay: number = 1000,
+    currentAttempt: number = 1
+  ): Promise<T | StripeErrorData> {
+    try {
+      return await apiCall();
+    } catch (error) {
+      const handledError = this.handleStripeError(error)
+
+      if (!handledError.retry) {
+        // If retry is false, we know data exists per the type definition
+        return handledError.data;
+      }
+
+      if (
+        handledError.retry &&
+        currentAttempt <= maxRetries
+      ) {
+        // Logic for retrying
+        const delay = baseDelay * Math.pow(2, currentAttempt - 1) * (0.5 + Math.random() * 0.5);
+        await setTimeout(delay);
+        return this.executeWithRetry(apiCall, maxRetries, baseDelay, currentAttempt + 1);
+      }
+      // Retries are exhausted  
+      throw this.buildError(
+        "An error occurred in InitiatePayment during creation of stripe payment intent",
+        error
+      ) 
+    }
+  }
+
+
   async getPaymentStatus({
     data,
   }: GetPaymentStatusInput): Promise<GetPaymentStatusOutput> {
@@ -173,21 +262,15 @@ abstract class StripeBase extends AbstractPaymentProvider<StripeOptions> {
       | string
       | undefined
 
-    let sessionData
-    try {
-      sessionData = (await this.stripe_.paymentIntents.create(intentRequest, {
+    const sessionData = await this.executeWithRetry<Stripe.PaymentIntent>(
+      () => this.stripe_.paymentIntents.create(intentRequest, {
         idempotencyKey: context?.idempotency_key,
-      })) as unknown as Record<string, unknown>
-    } catch (e) {
-      throw this.buildError(
-        "An error occurred in InitiatePayment during the creation of the stripe payment intent",
-        e
-      )
-    }
-
+      })
+    )
+    const isPaymentIntent = 'id' in sessionData;
     return {
-      id: sessionData.id,
-      data: sessionData,
+      id: isPaymentIntent ? sessionData.id : (data?.session_id as string),
+      data: sessionData as unknown as Record<string, unknown>,
     }
   }