January 24, 2021

Switched to Paddle for subscriptions and payments

Vito Botta @SkyLinx

I just figured that I have been forgetting to write some updates every now and then here, and I am not receiving reminders about it even though they are enabled.

Anyway, I've been doing very little promotion lately because I have been polishing many things, and this past week I have changed how I manage subscriptions and payments for DynaBlogger.

Previously I was using Chargebee to manage subscriptions, and had to use Stripe and PayPal as well since Chargebee doesn't handle payments directly but it requires 3rd party gateways.

I was happy with the integration and Chargebee in particular is an awesome product with very friendly support, but eventually I decided to switch to Paddle after reading many recommendations.

The most important reason are taxes. While Chargebee can calculate the sales tax/VAT correctly, I still had to deal with taxes myself and that's a pain since I am based in the EU (Finland).

With Paddle taxes are a thing of the past and I don't have to worry about them anymore, as they act as a Merchant of Record and handle taxes and billing support for me. Additionally, I no longer need my own accounts with Stripe and PayPal, and bookkeeping is cheaper and easier since I will only receive one single reverse invoice per month from them for the net amount after taxes and the Paddle fees.

Paddle is a little more expensive than Stripe and PayPal but the tax handling alone was a good reason to switch. Also, at some point I would have to pay for Chargebee too (I was on the free Launch plan), so for the foreseeable future Paddle is a better choice for a solo developer like me.

Without Paddle, I would have to register for VAT MOSS when approaching some threshold, and I have heard of some people who have seen their application denied, which is scary because the alternative would be file and pay taxes in each EU country, which is impossible for a team of one.

Besides the EU, many other countries also have sales tax, and with Paddle I can be sure that I play by the rules of each country even though I live in Europe.

So DynaBlogger is now using Paddle already. Unfortunately I had to send an email to my users explaining that I changed payment provider and that they would have to choose a plan again at the next login, and - if on a paid plan - enter their payment details again.

I don't like this but I had no choice and anyway I implemented things so that Chargebee and Paddle can coexist for now and the transition can happen without any disruption to the service. The system is now pretty flexible and would allow me to switch back to Chargebee or something else in the future if something goes wrong with Paddle.

But to be honest, I really hope I won't have to touch payment stuff anymore!

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