Churn refers to the number of payments lost each month through payments failing. For recurring payments, a churn rate of 5% means annoying, or even losing, 50 out of 1000 customers every month.
Credit cards
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Do it yourself
Setting everything up yourself from scratch + ![]() ![]() |
5-10%
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Do it yourself
Direct Access: If you manage Direct Debit payments in-house you are likely to have issues with unnecessarily high failure rates. This is because it can take a while to get processes for generating payment submissions and handling failures set up for all potential outcomes. Direct Debit bureau: With a bureau, failure rates are usually around 1%. What's more, some bureaus like FastPay and Smartdebit may offer some help dealing with payment failures.
1-3%
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Do it yourself
Managing everything yourself through a bank or a bureau + ![]() ![]() |
Payments service provider
A full service payment provider + ![]() ![]() |
5-10%
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2-3%
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Management software
A full featured software suite + ![]() ![]() |
Payment processor
A combined merchant account and payment gateway + ![]() ![]() |
5-10%
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0.5%
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The UK's leading Direct Debit provider + |
Credit cards
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Do it yourself
Setting everything up yourself from scratch + ![]() ![]() |
Do it yourself
If you set everything up yourself, you will need to keep on top of payment failures and chargebacks yourself. However, some payment gateways do offer services to help reduce or manage churn:
None
Authorize.net offer some support
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Do it yourself
If you set everything up yourself, you will also need to keep on top of payment failures and chargebacks. However, Direct Debit bureaus like FastPay and Smartdebit help you manage payment failures by:
None
Bureaus offer some support
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Do it yourself
Managing everything yourself through a bank or a bureau + ![]() ![]() |
Payments service provider
A full service payment provider + ![]() ![]() |
Payment Service Providers
Most PSPs offer broadly similar services for payment failures: PayPal will:
Limited
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Direct Debit Management Software
Management software providers will usually notify you of any payment failures and ask to retry payments.
Varies
Depending on provider
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Management software
A full featured software suite + ![]() ![]() |
Payment processor
A combined merchant account and payment gateway + ![]() ![]() |
Payment Processors
Payment processors usually offer some support for payment failures: Stripe automatically:
Varies
Depending on provider
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GoCardless
GoCardless will:
Full
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The UK's leading Direct Debit provider + |
Customer support varies hugely between providers particularly in terms of contact options, responsiveness and how they handle chargebacks and dispute resolution.