Ok,
I have automatic set up correctly. I tested it with setup automatically not being charged when order is placed. It setups the account automatically. I change it to a plan I have for 5.99 and set to setup after payment received(also tried testing after order placed). However it doesn't want to work when entering coupon. It just goes into pending.
The coupon is set as follows: name=100off, type=fixed amount 5.99(price of plan for first month), cycles=monthly and annually, applies to=the plan for 5.99, expiration=field blank, max uses=set at 0 for unlim, apply once and apply to new signups only.
My host told me he doesn't know why it's not working cause everything is setup correctly so told me to come over here.