Reducing churn isn’t just about improving your product, it’s also about choosing the right tools to support your customer experience. I analysed over a year's worth of Reddit threads where founders discussed their struggles with churn and how payment gateways contributed to or helped prevent it. This post is part of a larger analysis that I carried out to see which payment gateway was best for SaaS businesses, you can explore in full here
Now, to the good stuff: certain payment gateway features can directly impact churn, especially in early-stage or fast-scaling SaaS companies. Below, we break down the key features mentioned most often, and why they matter.
1. Dunning Management (a.k.a. Smart Retry + Reminders)
One of the most frequently cited features was automated dunning, the process of retrying failed payments and notifying users before cancelation. Payment gateways that offer smart retry logic (timing retries based on bank behavior) paired with email reminders reduce involuntary churn significantly.
The recommended Gateways for this are:
Stripe (with tools like Invoicing + Retry Logic)
Chargebee (advanced dunning workflows)
Paddle (built-in churn-reduction tools for SaaS)
2. Self-Serve Billing Portals
“Letting users update cards or cancel on their own saved our support team and reduced negative reviews.”
Customers often churn not because they want to but because they can’t easily manage their billing. Gateways that provide a branded self-service billing portal allow users to update payment methods, switch plans, or pause subscriptions without needing customer support.
The recommended Gateways for this are:
- Lemon Squeezy
- BillaBear
- Chargebee (highly customizable portals)
3. Subscription Pausing
“We added a pause option and cut churn in half during seasonal dips.”
Allowing users to pause subscriptions (instead of cancelling outright) was a surprisingly popular tactic. This feature gives customers breathing room, especially during financial slowdowns and keeps them in your ecosystem.
Gateways Supporting This:
Stripe (via API)
BillaBear
Chargebee
4. Automated Tax + Localization Handling
“European users kept churning due to tax surprises.”
When taxes, currency, or language aren’t localized, it creates friction that leads to churn. Gateways that automatically calculate and apply tax/VAT and support multi-currency + localized checkout reduce that friction.
Top Performers:
Paddle (excellent for global SaaS)
Lemon Squeezy (auto VAT handling)
Stripe (with Tax add-on)
5. Granular Usage-Based Billing Support
_“We lost users who couldn’t understand our billing until we switched gateways.” _
For SaaS models with usage-based or tiered billing, clarity and transparency are everything. Gateways that provide detailed invoice breakdowns and handle variable pricing accurately reduce disputes and billing-related churn.
Gateways Built for This:
Chargebee
BillaBear
Stripe + Metered Billing API
Final Thought: Choose Churn-Prevention as a Feature, Not a Fix
Many founders on Reddit echoed the same realization: churn reduction should be built into your billing from day 1. The right payment gateway won’t solve product-market fit, but it can plug the holes where you're leaking revenue due to failed payments, friction, or confusion.
If you’re currently evaluating or switching gateways, prioritize these churn-fighting features. You’ll not only recover lost revenue, you’ll also build a smoother, more resilient customer experience.
Source
What payment providers do you use? Stripe? : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1e2msce/what_payment_providers_do_you_use_stripe/
What is the best payment platform today to collect subscription fees for a SAAS Business? - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1iztpiv/what_is_the_best_payment_platform_today_to/
Stripe for SaaS (clients)? : r/node - Reddit, accessed April 28, 2025, https://www.reddit.com/r/node/comments/1ajs9rv/stripe_for_saas_clients/
What payment system do you use for your SaaS? - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1ejbn9i/what_payment_system_do_you_use_for_your_saas/
Exploring Payment Providers: Is Stripe the Best Choice for a SaaS in ..., accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/18uawbu/exploring_payment_providers_is_stripe_the_best/
SAAS Owners don't use Stripe - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1cl7yyn/saas_owners_dont_use_stripe/
SAAS subscription management software options? - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/aaqipp/saas_subscription_management_software_options/
Switching from Paddle to Stripe : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1brd0yo/switching_from_paddle_to_stripe/
Recurly vs Paddle vs Stripe : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/10ksqns/recurly_vs_paddle_vs_stripe/
Choosing between Paddle and FastSpring for payments. Your experience? : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/ollbag/choosing_between_paddle_and_fastspring_for/
Paddle payment integrations : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/18zx45m/paddle_payment_integrations/
What payment processor do you use? Looking for as many replies as possible! : r/SaaS, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/12ef0ic/what_payment_processor_do_you_use_looking_for_as/
Is Lemon Squeezy a bad choice for EU users, as I have read? : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1bywbqh/is_lemon_squeezy_a_bad_choice_for_eu_users_as_i/
Don't trust Lemonsqueezy with your business : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1b3sf2l/dont_trust_lemonsqueezy_with_your_business/
Paddle vs. Lemon Squeezy - Experiences? : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/13noyxv/paddle_vs_lemon_squeezy_experiences/
BillaBear: A Symfony powered Subscription Management and Billing System - Reddit, accessed April 28, 2025, https://www.reddit.com/r/PHP/comments/1e9angm/billabear_a_symfony_powered_subscription/
I'm offering 5 free spots for my billing service : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1egur24/im_offering_5_free_spots_for_my_billing_service/
Thoughts on Chargebee : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1dl3cwm/thoughts_on_chargebee/
What's the benefit of using a program like chargebee? : r/SaaS, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/kj6xng/whats_the_benefit_of_using_a_program_like/
Chargebee for Startup Recurring SaaS Payment - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/tbvwy5/chargebee_for_startup_recurring_saas_payment/
Is FastSpring a reliable way to handle Sales Tax collection/remittance for a start-up SaaS company? - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/jrfao0/is_fastspring_a_reliable_way_to_handle_sales_tax/
Is square the best payment platform? : r/smallbusiness - Reddit, accessed April 28, 2025, https://www.reddit.com/r/smallbusiness/comments/17f0qnb/is_square_the_best_payment_platform/
Never Use Square : r/smallbusiness - Reddit, accessed April 28, 2025, https://www.reddit.com/r/smallbusiness/comments/1c5j0yv/never_use_square/
PayPal or Stripe for small business? : r/Entrepreneur - Reddit, accessed April 28, 2025, https://www.reddit.com/r/Entrepreneur/comments/yvfped/paypal_or_stripe_for_small_business/
What % of your paying users pay with Paypal? - SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/ptehou/what_of_your_paying_users_pay_with_paypal/
Looking for services for billing + member portal : r/SaaS - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1blwydu/looking_for_services_for_billing_member_portal/
Which MoR to use for my SaaS? PayProGlobal, Transaction.Cloud - Reddit, accessed April 28, 2025, https://www.reddit.com/r/SaaS/comments/1ax480i/which_mor_to_use_for_my_saas_payproglobal/
Top comments (0)