The very first membership site I launched was for a digital community I built around personal finance tips.
It was small at first, maybe 60 members. I used a payment platform that looked sleek and promised “easy setup.” Sounded perfect, right?
Except… they didn’t process international cards. Half my signups failed silently. No warning, no error messages, just lost revenue. And worse? No way to collect recurring payments from PayPal users, which I totally didn’t realize mattered until people started emailing me asking if there was another way to join.
Why Choosing the Right Payment Processor Actually Matters?
It’s not just about “getting paid.” It’s about creating trust, offering flexibility, and avoiding tech headaches. And if your membership site relies on recurring revenue — which most do — you need a processor that understands subscriptions.
Some things I learned the hard way:
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Recurring payments aren’t always supported out of the box. Stripe is great at this. Others… not so much.
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PayPal compatibility is essential if you have a global audience.
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Some processors take 7–10 days to pay out, which can mess with cash flow.
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A lot of platforms don’t offer strong dunning management (that’s a fancy way of saying failed payment recovery).
What to Look for in a Payment Processor for Membership Sites?
Let me break this down like I wish someone did for me early on.
Subscription Support
This is non-negotiable. Your processor needs to support automatic, recurring billing with retry logic if a payment fails. That’s especially important if you’re offering trial periods for memberships, since conversions from free to paid need to be seamless.
Multiple Payment Options
Credit cards, PayPal, Apple Pay — the more options, the fewer excuses for customers to bounce. If you’re still deciding how to structure your offer, choosing the right membership model will influence which payment methods you’ll need.
International Support
If you plan to serve a global audience (even if that’s not now), make sure your processor accepts international cards and handles currency conversion. This was one of my biggest oversights when I first started building my membership site.
Low Fees
Every percent counts. Stripe charges ~2.9% + 30¢. Some tools tack on additional fees on top of that, especially if you’re going through a third-party membership platform.
Dunning Tools
Look for auto-reminders, retry sequences, and card updater features. I use Payhip for membership sales now and it handles that for me automatically.
Integration With Your Platform
Whether you’re on WordPress (like using MemberPress), Podia, Teachable, Ghost, or custom code — check what payment processors are supported natively. Don’t duct-tape it.
Tools I’ve Tried and What Worked Best
Here’s my experience with some of the top ones:
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Stripe
Hands down the most reliable. Great dashboard, fast payouts, recurring billing, global support. The only downside? It’s not available in every country yet. -
PayPal
Everyone knows it. Some people prefer it. I include it as a second option now, especially helpful for international customers. But managing subscriptions via PayPal alone is a pain. Their cancellation system is clunky and often leaves users confused. -
Gumroad
Solid for one-off digital products, not ideal for long-term membership billing. Great UX though! -
Payhip
What I use now. It’s super simple, lets me sell subscriptions and digital products, and it supports both PayPal and Stripe in one checkout. Their fees are low, and I love that I don’t need third-party plugins. -
ThriveCart
Amazing features for high-volume sellers. If you need complex funnels, upsells, and affiliate support — this one’s worth it. Not cheap upfront though.
Mistakes I Made (So You Don’t Have To)
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I didn’t check payout times. One platform held funds for 30 days. That hurt.
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I only offered credit card payments, which blocked a ton of PayPal users.
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I had no retry or email sequence for failed payments — people just dropped off.
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I assumed Stripe = all I need, but forgot to check platform compatibility.
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I didn’t account for VAT or tax handling — which was a nightmare later on with EU customers.
If I had to start again, I’d make a list of:
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Who my audience is (local or global?)
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How tech-savvy they are (would they bounce if asked to enter credit card info manually?)
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What platform I’m using (do they integrate cleanly with my membership system?)
That alone would’ve saved me a dozen headaches. And honestly, a good payment setup is part of any long-term membership retention strategy.
Final Thoughts
Picking the right payment processor isn’t flashy, but it’s one of the most important decisions you’ll make for your membership site.
It affects your customer experience, your revenue, your retention rate — and your sanity. Don’t chase the fanciest option. Choose the one that fits your tech stack, audience, and goals.
For most creators, I recommend Stripe + PayPal through a platform like Payhip, especially if you’re selling digital memberships and want to keep things simple. But whatever you choose — test it before launching, and set up those failed payment flows!
Seriously… don’t be me in 2021, losing customers because of a card error that didn’t even send an alert.
