HACKER Q&A
📣 colesantiago

How do you handle recurring payments in 2021?


Hey HN,

What is the state of recurring payments that most startups / companies use?

Been meaning to use Stripe for everything, but not sure why other competitors such as fusebill, chargebee, memberstack, chargify, recurly etc, exists or what their benefits are, not sure I even know the difference.

Do you use any of these in the list above or something else to handle recurring payments and how was your experience?

Thanks.


  👤 futhey Accepted Answer ✓
I love Stripe, it's amazing. For the 95% use-case it works better than all of the alternatives for payments in North America.

But it's the last 5% - 15% that will keep you up at night and/or eat up your time. Accepting payments from EU customers and international users. A typical B2B SaaS will eventually end up accepting checks in the mail, bank transfers from a half dozen countries, and (heaven forbid): PayPal. And you have to support tax compliance on top of all of that, and integrate it with your single source of truth for billing, and company accounting software.

Billing is a pain. Nothing is perfect. Stripe is a wonderful component of a complete solution, and a great starting point.

Most of the alternatives you listed handle a very narrow set of credit-card dunning issues, which Stripe is getting better and better at every day.

One thing on my radar is Paddle. They seem to be tackling a broader set of issues upstream/downstream of actual payment processing in an integrated way.


👤 dbbk
As a one-man-band, Paddle is indispensable. Takes care of all of your tax and VAT liability globally. Not the biggest fan of the UX but this is too big a benefit to give up.

👤 seanwilson
I use Paddle for taking subscription payments for a paid Chrome extension (https://www.checkbot.io/).

The main draw for me over Stripe is Paddle handle all country specific sales tax and VAT for me. Paddle send me a single pay out every month, I file that as income in my tax return and I'm done. Without Paddle, I'd need to charge the correct VAT for sales to each country plus keep on top of the changing rules (I'm in the UK).

How do other people do this? I'm curious how many people just don't know the rules around e.g. EU VAT and ignore it when they're small.


👤 jon-wood
These days I’d use Stripe for everything, but the other payment SaaS products exist because for a long time there were some big holes in Stripe’s subscription offering - most notably not having any simple way to handle expired/cancelled cards without building out all the UI for it yourself. They recently released self-service portals for that sort of thing making it much less painful to use.

👤 ThePhysicist
B2C? You probably need a combination of credit cards, Paypal and possible several others depending on your niche / platform (e.g. Apple Pay or Amazon Pay).

B2B? I'd go with Stripe for credit cards and SEPA debit but also offer bank transfer for larger tickets / customers. For our services we offer the latter for all yearly plans as some companies don't want to pay by credit card and prefer getting an invoice that their accounting department can handle. Depending on your location there are various services that can provide you an API for your bank account balance and transfers, you can then match them against the invoices mostly automatically.

There are higher-level services like Chargebee that offer multiple payment gateways and do some of the legwork for you, personally I find Stripe + some homebrew code for invoice generation and bank transfer handling easier, plus it amounts to less personal / sensitive data of your clients being stored on third-party services (if you value that kind of thing).


👤 sneeuwpopsneeuw
In the Netherlands we prefer to use the dutch payment system "Ideal" (One of the best systems ever btw). Most dutch payment service providers give you an url back from there api and when you send the user to that url they can select their prefered payment option. So recurring payments with Ideal is just sending 1 additional boolean to the api.

https://www.mollie.com/en does this for example. (Disclaimer I worked in the same office as the dutch payments provider Qantani. They sold all their users to Mollie.)

I know of some dutch companies that check all the prices and based on the payments option the customer wants they sent the user to a different payments provider to save money on processing fees. I'm not very familiar with Stripe, I have only set it up on a wordpress website once. but if they do not allow you to do cheap recurring payments then just implement a second provider and switch between them.


👤 tdevito
Stripe all the way! They have the best infrastructure and security, you can build out any payments system with their APIs and now they even have treasury-as-a-service to build your own bank. Elon and Peter Thiel were early investors, I can't imagine any company catching up at this point.

👤 santa_boy
I just implemented a recurring subscription in a nocode platform called Bubble using Stripe. I love the intuitive API support and documentation of Stripe. Also, the Stripe brand seems to give a lot of credibility to the service provided by my client.

👤 smarri
Gocardless is built specifically for recurring payments. Former YC company.

👤 mtnGoat
Stripe, but eh, they nickel and dime you for stuff that should be included.

👤 rronalddas
In india, we mostly use Razorpay

👤 kull
Stripe and Braintree