Finding the right recurring payment system to process recurring invoices for your subscription-based business isn’t easy.

Aside from there being a multitude of options in the market, SaaS and subscription businesses often have a diverse and complex set of items that they need their chosen platform to check-off the list.

If you’re currently looking for the right recurring payment system, this guide will help you.

When it comes to tracking your metrics — like trial insights and retention — you can also turn to Baremetrics for a solution.

Interested in a demo? Click here to start your free Baremetrics trial.

Last updated June 2026.

What is the difference between payments providers and merchant accounts?

Not all payment systems work the same. Most small businesses, especially those conducting services primarily online, will opt for a third-party payment provider. Meanwhile, those who handle a lot of in-person transactions and growing startups are more likely to opt for a dedicated merchant account provider.

Here’s what makes them different:

The latter is beneficial for companies with a high volume of transactions. However, there’s an underwriting process involved, so getting approved for a dedicated merchant account could take a few weeks.

On the other hand, you can get set up with a third-party payment provider in as little as a few hours.

With these details in mind, let’s review some of the most popular payment systems. Also, be sure to check out Baremetrics using our 14-day free trial and a live demo to see how our dedicated SaaS management system stacks up.

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What features does Stripe offer as a payment processor?

Stripe is, by far, one of the most popular payment providers in the market. With a fixed fee structure, you’ll know exactly how much you’ll be paying for each transaction while keeping fees relatively low. Plus, there are no minimums or monthly fees.

What services does Square provide as a dedicated merchant account provider?

Square is here to meet the needs of any business seeking a dedicated merchant account with a modern approach. It’s ideal for businesses that do a fair amount of business both online and in-person.

When it comes to managing recurring charges, Square allows you to build your solution with APIs and Software development kits (SDKs) for online and in-app payments.

What benefits does Fattmerchant offer for recurring invoices and subscriptions?

Fattmerchant is consistently recommended for businesses seeking a recurring payment system. Over 7,000 merchants trust it, and it is said that the average subscription-based business saves over $500 per month.

What features does Recurly provide for subscription-based businesses?

Recurly is another solution where the core focus is on subscription-based businesses.

With Recurly, you’ll need to choose one of the subscription plans, each of which has varying features and functionalities. Customized plans are available to fit the needs of larger businesses.

How can insightful reporting help grow a startup?

Figuring out how to automate your recurring billing and invoicing shouldn’t take forever. While this list only scratches the surface of payment gateways, choosing the right billing software ultimately comes down to your business’s unique needs.

To be successful, your subscription billing strategy can’t focus wholly on the checkout experience. Thriving businesses are also proactive in measuring and reducing churn rates alongside other metrics.

Ultimately, no billing system, subscription management service, or payment processing automation can do that for you. To take care of that part of the equation, you need a tool to better understand your customers.

With Baremetrics, you can take control of the billing cycle, gain insight into failed payments, and better address what your online business needs with the help of a powerful management platform.

Start your Baremetrics free trial today and see how it simplifies cash flow forecasting and puts the power back in your hands.

Frequently asked questions

What is the main difference between third-party payment providers and dedicated merchant account providers?

Third-party payment providers accept payments on behalf of the business, while dedicated merchant account providers give the business its own merchant account to process payments directly.

What type of businesses are more likely to opt for a dedicated merchant account provider?

Businesses that handle a lot of in-person transactions and growing startups are more likely to opt for a dedicated merchant account provider.

How long does it take to get set up with a third-party payment provider?

You can get set up with a third-party payment provider in as little as a few hours.

What is the benefit of using a dedicated merchant account provider for companies with a high volume of transactions?

Dedicated merchant account providers allow companies to process payments directly, with the money going into their account, which is beneficial for companies with a high volume of transactions.

What is important for a subscription billing strategy to be successful?

A successful subscription billing strategy should not focus solely on the checkout experience, but also on measuring and reducing churn rates and other metrics.

Jerusha Songate

Jerusha has a strong interest in SaaS and finding new business opportunities. She writes for Baremetrics as part of her passion for business journalism.

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