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Stripe vs GoCardless Which one should you choose?
17 December 2019

Stripe vs GoCardless Which one should you choose?

With V3 around the corner, we thought now was a good time to give you some more information about our new payment partner, GoCardless!

If there’s one thing we’ll always be, it’s transparent with our users. We’ve been long-term Stripe supporters since day one of Coacha due to their low fees, great support and transparency with their users. It’s always been important to us to work with organisations who have our users’ best interests at heart.

Nothing has changed with our relationship with Stripe. We still think they’re awesome. But some of our users have been asking us for direct debit integration for a little while and we decided the time was right to partner with another payment processor.


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It’s for this reason that we’re extremely excited to announce our partnership with GoCardless. GoCardless are one of the best global bank debit networks around. They process $10bn in transactions per year and work with organisations such as the Guardian and Thomas Cook.

We’ll actually soon be switching our user’s £25 per month Coacha subscriptions over to GoCardless. This is because some of our clubs don’t have bank cards. With GoCardless, you connect with your bank details (sort code and account number) as opposed to your card details which also means in the event of a lost/stolen/expired card, nothing is affected.

The integration of GoCardless may leave you wondering exactly how things are different from Stripe and what their pros and cons are. For this reason, we’re comparing both services to help you make an informed decision on which provider to use.
 



What type of payment is set up?


GoCardless

GoCardless sets your subs up with a direct debit. This uses bank details, meaning if your member’s card gets lost/stolen/expires, nothing is affected.

Stripe

Stripe sets your subs up with recurring payments. This uses card details, meaning if your member has a new card, they’ll need to re-set up their payment. This is still an easy process.
 


 

What are the transaction fees?


GoCardless

GoCardless fees are just 1% per transaction.

Stripe

Also on the low end of the market, Stripe’s fees are just 1.4%+20p

Coacha doesn’t add anything to these fees… unlike a lot of club apps.
 


 

Can you send one-off payment requests?


GoCardless

GoCardless can be used for both subscription (recurring) payments as well as one-off payments. However, the opportunity to go take one-off payments via GoCardless will not quite be ready when V3 goes live.

When this part of the system does go live, if you're trying to take a payment from a member who isn't attached to a subscription plan, you will need to set up a 'direct debit agreement'. Please note that this isn't a recurring mayment, just will be taken as a one-off.


Stripe

You can send one-off payment requests to any member within Coacha.

 

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Will failed payments be automatically chased?


GoCardless

Payment failures are much lower with Direct Debit than with credit or debit cards (which can expire or be lost or stolen). Should a payment fail, GC will retry to take the payment 3 times it at no extra charge.

Stripe

All failed payments are automatically chased up to 3 times following the initial failed payment at no extra charge.
 



Can you choose the amount of days in between the failed payment retries?


GoCardless

At the moment, the retry process for Coacha and GoCardless is fixed as standard. However, GoCardless will still attempt to recollect the payment 3 additional times after failing.

Stripe

You can choose specifically the amount of days in between the retries.

 



When can you take payments?


GoCardless

You can collect payments via GoCardless weekly, monthly, yearly or bimonthly.

Stripe

You can collect your subscriptions weekly, monthly or yearly.

 



What are the benefits of Direct Debit over recurring card payment?


Once you have a mandate in place with the end customer (payer), you can automatically pull funds from their bank account rather than waiting for them to 'push' funds to you. This is referred to as a ‘pull-based’ method.
 

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Secondly, Direct Debit payments are lower in cost compared to credit and debit cards.

Finally, Direct Debit payments have a much lower payment failure rate compared to cards which can expire or get lost/stolen.

 



Which provider should I choose?


Which provider you choose should be an informed decision that should be made by your club management. Ultimately, both GoCardless and Stripe have unique factors that benefit clubs differently and you should take their features into consideration in conjunction with your club’s needs.

 




Can I use a combination of GoCardless and Stripe?


If, for example, you’re wondering if you can use GoCardless for collecting subs and Stripe for taking one-off payments, the answer is yes!
 



If I want to switch to GoCardless from Stripe, will I need to set up my subscriptions again?


If you currently have your subs set up with Stripe, you can switch to GoCardless to make use of the additional perks it’ll bring. However, as it’s a whole new service and the agreement you have with your athletes is with Stripe, you’ll need to cancel all plans and re-set them up with GoCardless.
 



In conclusion


• GoCardless has low transparent fees (just 1% for UK-based clubs!). See more information here.

• Subs are set up as direct debits rather than recurring card payments, meaning that payments won’t be affected by lost/stolen/expired cards

• You can only take a one-off payment if a member is assigned to an existing subscription plan. But you can still utilise Stripe for one-off payments.

• There is an automatic failed payment chasing system in place.

• You can set up direct debits to occur weekly, monthly, bimonthly, termly, or yearly




‘Coacha revolutionised my program administration and saves me time and money.’

Sarah Watkins - Program Direction - GCA Cheer