While we hear "I'd never pay more than Stripe fees!" from prospective customers all the time, it's important to note Stripe fees are not created equal. For example, it's an incredibly common misconception that Stripe fees are simply:
These fees represent the absolute bare minimum fee that you may end up paying when processing a payment with Stripe. But if you're using Stripe's own billing tools to create subscriptions, you also need to pay for Stripe's Billing products. This will cost you another .5% to .8% per transaction at a minimum, meaning you'll end up paying at least 3.4% to 3.7% per transaction.
You won't find these fees if you look at your Stripe fees at an individual transaction level—they're billed at the account level. You can find these fees within your Stripe account by going to All Transactions.
With Outseta the Stripe fees that you'll pay don't include these additional fees.
A fun fact—we started building Outseta more than 5 years ago now largely because Stripe hadn't built their own subscription management and billing tools. Founders like us needed them! We scratched our own itch and realized there are enormous benefits to delivering all the table stakes software tools that early stage SaaS founders need in a single platform.
While Outseta may not be the immediately recognizable name that Stripe is, what we offer is distinctly unique. Our product has been optimized and improved for years now based on the feedback of thousands of ambitious founders.
Outseta charges a 1% fee on successful transactions in addition to Stripe fees. What that means practically is for most customers in the US is:
Here's what you get for the 1% fee that you pay to Outseta:
Also of note—once you connect Stripe to your Outseta account, you never need to login to Stripe again. You can change prices, issues refunds, build sign up forms or payment links, and view financial reports directly from within the tool you're already in—Outseta!
While we've built our own billing tools at Outseta, most other membership software providers actually create subscriptions in Stripe under the hood. That means that you—the customer—is being charged for Stripe Billing on top of any other fees the membership software provider charges.
These additional fees are almost always higher than the 1% fee Outseta charges and show up as Application Fees when you look at individual transactions in Stripe.
Because these additional Application Fees are taken out as part of the transaction, it's pretty easy to miss how much you're actually paying in total fees to a membership software provider. At Outseta we've taken a different approach—we directly bill our customers for the 1% fee each month based on their payment volume.
This probably hurts us because we're deliberately sending our customers an invoice that shows the total payment processing fees that they're paying to Outseta. But based on all the confusion around this topic, I'm happy that we're overtly transparent with our fees.
Here's a very common illustrative example for a US-based customer:
Other membership software providers
Whether you choose to use Stripe's own billing tools or Outseta, you're in good hands. The costs of processing payments in either scenario end up being almost exactly the same.
Outseta's going to save you a ton of time and technical work, because our billing tools come pre-integrated with an all-in-one platform designed to help you run a SaaS or membership business. If speed to market is important to you and you like the idea of managing your business from behind a single login, give us a look. Like most software buying decisions, there's a time and place for both options.