The verdict in three sentences
For a B2B SaaS company in London, card-only billing loses 5 to 10 % of monthly collections to failures (expired cards, limits, strong customer authentication), versus 1 to 3 % for Direct Debit. Stripe Billing (0.7 % of billed volume plus card fees) remains the best subscription engine, while GoCardless (about 1 % with a per-transaction cap) is the most reliable payment method for B2B invoices above £200 a month. The most profitable setup is often to keep Stripe for subscription logic and offer Direct Debit by default, for an integration of £4,500 to £13,000 (€5,000 to €15,000).
2026 fees and failure rates compared
| Criterion | Stripe Billing + card | Stripe Billing + Bacs via Stripe | GoCardless (Bacs) |
|---|---|---|---|
| Subscription software fee | 0.7 % of billed volume | 0.7 % of billed volume | included (Standard plan) |
| Transaction fee | 1.5 % + 20p (UK card) | 1 % capped at £2 | 1 % + 20p, capped at £4 |
| Cost on a £300 invoice | 2.10 + 4.70 = £6.80 | 2.10 + 2.00 = £4.10 | £3.20 |
| Cost on a £1,500 invoice | 10.50 + 22.70 = £33.20 | 10.50 + 2.00 = £12.50 | £4.00 |
| Observed monthly failure rate | 5 to 10 % | 1 to 3 % | 1 to 3 % |
| Time to funds | D+2 to D+7 | D+3 to D+7 | D+3 to D+5 |
| Customer dispute window | 120 days (chargeback) | Direct Debit Guarantee | Direct Debit Guarantee |
These rates are 2026 orders of magnitude based on public price lists and can be negotiated above £1 million of annual volume. For large invoices, the GoCardless cap makes a real difference.
What to integrate, and at what price
Picking a provider is not enough: the value comes from dunning, invoice compliance and accounting sync. If you also bill French customers, note that France is phasing in mandatory e-invoicing from September 2026, and the UK is consulting on its own e-invoicing roadmap.
| Building block | Description | Indicative cost |
|---|---|---|
| Plan catalogue and proration | Plans, add-ons, mid-month plan changes | £1,300-3,100 |
| Online Direct Debit mandate | Electronic mandate signature at signup | £700-1,600 |
| Smart dunning | Scheduled retries, emails, card-to-Direct-Debit switch | £900-2,200 |
| Compliant e-invoices | Structured format, delivery via accredited platform when required | £1,300-3,500 |
| Accounting sync | Xero, QuickBooks, Sage | £900-2,600 |
| MRR and churn dashboard | Financial KPIs for the CFO | £700-1,800 |
A focused project (Direct Debit added to Stripe, dunning, accounting export) sits around £4,500. A full overhaul with e-invoicing and migration of 800 subscribers approaches £13,000.
Mini case study
Isabelle, CFO of a London SaaS company with 800 B2B customers paying £300 a month on average, bills £240,000 a month. Unrecovered card failures represent 4 % of revenue, i.e. £9,600 a month. She has GoCardless Direct Debit integrated as the default along with automated dunning, for £9,500. Six months later, 65 % of customers have moved to Direct Debit and losses fall to 1.2 %, i.e. £2,880 a month. Gain: £6,720 a month. Payment fees also drop by about £1,200 a month on the migrated share. Payback: under 2 months.
FAQ
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Can Stripe Billing be used with GoCardless?
Yes, GoCardless integrates with Stripe and with billing tools such as Chargebee. Integration costs £1,800 to £4,500 depending on the switching logic.
Do B2B customers accept Direct Debit?
In the UK, most companies already pay recurring suppliers by Direct Debit. When it is offered by default, 50 to 70 % of new customers choose it.
Is SEPA needed for EU customers?
Yes, for customers with euro accounts you need SEPA Direct Debit, which both GoCardless and Stripe support. GoCardless caps SEPA fees too, at around €4 per transaction.
What about e-invoicing?
If you bill French companies, they will require structured e-invoices by September 2027 at the latest. Budget £1,300 to £3,500 to adapt your invoicing flow.
How long does integration take?
Plan 3 to 6 weeks, including 1 to 2 weeks of gradual subscriber migration to Direct Debit mandates.
Let's scope your project. Tell us your subscriber count, average monthly invoice and accounting tool, and we will price your recurring billing between £4,500 and £13,000, delivered in 3 to 6 weeks. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
