Published: January 2025

‍

For Australian small and medium enterprises (SMEs) in e-commerce, technology, and retail, efficient payment collection is critical to maintaining cash flow, ensuring compliance with Australian Taxation Office (ATO) requirements, and enhancing customer experience. Stripe and Chargebee are two powerful platforms that enable SMEs to collect payments, offering complementary strengths to handle one-off and recurring transactions. This comprehensive guide explores how Australian SMEs can leverage Stripe as their primary payment processor, supplemented by Chargebee for subscription-based models, focusing on accounting integrations, costs, pros and cons, and key features. We provide a detailed roadmap tailored for Australian e-commerce, tech, and retail businesses.

‍

Understanding Stripe and Chargebee

‍

Stripe

Stripe is a global payment processing platform designed to facilitate online and in-person transactions for businesses of all sizes. It acts as a payment gateway, enabling SMEs to accept payments via credit cards, digital wallets (e.g., Apple Pay, Google Pay), and alternative methods like Afterpay. Stripe is known for its developer-friendly APIs, robust security, and seamless integrations with e-commerce platforms (e.g., Shopify, WooCommerce) and accounting software like Xero. For Australian SMEs, Stripe supports ATO-compliant GST calculations and processes payments in AUD and over 135 other currencies, making it ideal for businesses with domestic and international customers.

Example: A Brisbane e-commerce store uses Stripe to process $10,000 in monthly online sales, accepting Visa, Mastercard, and Afterpay with automatic GST applied.

‍

Chargebee

Chargebee is a subscription management and recurring billing platform tailored for businesses with subscription-based revenue models, such as SaaS companies or tech startups. It automates invoicing, payment collection, dunning (failed payment recovery), and revenue analytics, while integrating with payment gateways like Stripe to process transactions. Chargebee supports ATO-compliant GST reporting and multi-currency billing, making it suitable for Australian SMEs with recurring revenue streams. Its customer portal and flexible billing options reduce administrative overhead, allowing businesses to focus on growth.

Example: A Melbourne SaaS firm uses Chargebee to manage 200 monthly subscriptions at $50 each, syncing invoices and GST data to Xero for BAS lodgement.

‍

Stripe

‍

Accounting Integrations

• Xero Integration:
  • How It Works: Stripe syncs transactions (e.g., invoice payments, refunds) to Xero as sales invoices or payments. The Stripe Chrome Plugin enables one-click reconciliation by matching payments to Xero invoices.
  • GST Compliance: Maps Australian GST rates (10% standard, zero-rated for exports) in Xero, ensuring accurate tax liability reports for BAS lodgement.
  • Example: A Sydney tech company processes $10,000 in monthly sales via Stripe. Transactions sync to Xero, categorising revenue and GST, saving 5 hours weekly on manual entries.
  • User Feedback: A Perth retailer praised, “Stripe + Xero cuts my BAS prep time in half. Transactions sync instantly, and GST is spot-on.”
  • Setup Steps:
    1. Connect Stripe via the Xero App Store.
    2. Configure sync rules (e.g., map Stripe fees to an expense account).
    3. Set a sync start date for historical transactions.
    4. Reconcile using Stripe’s Chrome Plugin or Xero’s bank feeds.
  • Pitfall: Incomplete sync rules can miss transactions. A Sydney tech firm failed to map Stripe fees, causing $500 in unrecorded expenses.
  • Solution: Review sync settings with your accountant to map all transaction types.
• Other Integrations: Supports QuickBooks, MYOB, and NetSuite.

‍

Costs

• Pricing Structure: Pay-as-you-go with no setup or monthly fees, charged per transaction.
  • Domestic Card Payments: 1.75% + A$0.30 per transaction (e.g., $1.75 + A$0.30 for a $100 payment).
  • International Card Payments: 2.9% + A$0.30 per transaction, plus 1% for currency conversion if not AUD.
  • Additional Services:
    • Invoicing: Free for 25 invoices/month, then 0.4% per invoice.
    • Custom Pricing: Volume discounts for businesses processing >$1M annually.
  • Example: An e-commerce business processes $50,000 in monthly card payments. Fees: [$50,000 × 1.75%] + [500 transactions × A$0.30] = $925.
  • Pitfall: International fees inflate costs. A Perth tech company paid 3.9% on USD payments, adding $1,000 monthly.
  • Solution: Encourage AUD payments or negotiate custom pricing for high volumes.

‍

Pros and Cons

• Pros:
  • Ease of Integration: APIs and pre-built integrations (e.g., Shopify, WooCommerce) enable quick setup. A retailer can integrate Stripe in 2 hours.
  • Global Reach: Supports 135+ currencies and payment methods (credit cards, Apple Pay, Afterpay), ideal for exporters.
  • Security: PCI Level 1 compliant with fraud protection.
  • No Fixed Costs: Pay-as-you-go suits low-volume SMEs.
  • Developer-Friendly: Stripe Elements allow custom checkout experiences.
• Cons:
  • Limited Subscription Features: Lacks Chargebee’s advanced automation (e.g., dunning, churn analytics). Tech companies can struggle with manual subscription edits.
  • Fee Accumulation: International and currency conversion fees add up.
  • Customer Support: 24/7 support can be slow for complex issues. Retailers have noted delays in resolving refund errors.
  • Learning Curve: Custom integrations require coding expertise, challenging for non-technical SMEs.

‍

Features

• Payment Methods: Accepts credit cards, debit cards, Afterpay, Apple Pay, Google Pay, and bank transfers. Ideal for a Melbourne retailer with diverse customers.
• Invoicing: ATO-compliant invoices with GST, free for 25 invoices/month.
• Fraud Protection: Radar’s machine learning saved a Sydney e-commerce SME $5,000 in chargebacks in 2024.
• APIs and Developer Tools: Stripe Elements and Connect enable custom checkouts. Tech firms can build a branded checkout in 3 days.
• Global Payments: Processes 135+ currencies, crucial for exporters.
• Analytics: Real-time dashboard tracks conversion rates and revenue trends.
• Example: E-commerce businesses can use Stripe’s invoicing and Afterpay, boosting conversions by 15%.

‍

Chargebee

‍

Accounting Integrations

• Xero Integration:
  • How It Works: Chargebee syncs invoices, credit notes, payments, refunds, and customer details to Xero every 24 hours, eliminating manual CSV imports. Supports multi-currency and ATO-compliant tax reporting.
  • GST and BAS: Applies Australian GST rates and generates tax liability reports for BAS preparation. A  SaaS can use Chargebee to apply 10% GST to subscriptions, syncing data to Xero.
  • Example: A startup with 200 subscribers manages $50 subscriptions via Chargebee, syncing each payment to Xero as a sales invoice with GST.
  • Setup Steps:
    1. Connect Xero from Chargebee’s dashboard.
    2. Set up accounting codes for revenue, taxes, and discounts.
    3. Configure sync rules (e.g., map subscription plans to Xero accounts).
    4. Select a sync start date and run the initial sync.
  • Pitfall: Misconfigured tax mappings cause GST errors. A tech firm can report $2,000 in incorrect GST due to unmapped tax codes.
  • Solution: Test with a small batch of transactions and verify GST settings with your accountant.
• Other Integrations: Supports QuickBooks, Sage Intacct, and NetSuite. A Sydney tech company with international clients uses Chargebee’s NetSuite integration for multi-currency reporting.

‍

Costs

• Pricing Structure: Tiered plans based on revenue and features.
  • Launch Plan: Free up to A$50,000 annual revenue. Includes 10 user accounts, unlimited payment gateways, and Xero integration.
  • Rise Plan: A$299/month (monthly) or A$249/month (annual), including A$50,000/month revenue. Overage: 0.6% of additional revenue.
  • Scale Plan: A$599/month (monthly) or A$549/month (annual), including A$75,000/month revenue. Overage: 0.9%. Adds advanced invoicing and multi-currency support.
  • Enterprise Plan: Custom pricing for multi-entity businesses.
  • Example: A Melbourne SaaS firm with A$100,000/month revenue on the Scale Plan pays A$549 + [(A$100,000 – A$75,000) × 0.9%] = A$774/month.
  • Pitfall: Overage fees escalate. A tech company on the Rise Plan could face $1,200 in unexpected fees when revenue exceeds A$50,000/month.
  • Solution: Monitor revenue and upgrade plans or negotiate enterprise pricing.

‍

Pros and Cons

• Pros:
  • Subscription Automation: Automates billing, dunning, and churn management. A tech company can reduced unpaid invoices by 80% with dunning.
  • Robust Integrations: Syncs with Xero, Salesforce, and 30+ gateways.
  • Flexible Billing: Supports usage-based, tiered, and hybrid pricing. A Sydney tech firm can test new pricing without delays.
  • Customer Portal: Reduces admin workload by allowing customer self-service.
  • ATO Compliance: Simplifies GST and BAS reporting.
• Cons:
  • Cost for Small SMEs: A$299+/month is steep for low subscription revenue. Some companies find the Rise Plan unaffordable.
  • Complex Setup: Integration requires technical oversight. A retailer can spend 10 hours configuring Xero sync.
  • Overage Fees: Revenue spikes trigger high costs.
  • Customer Support Issues: Users from time to time report unresponsive support.
  • Limited One-Time Billing: Focuses on subscriptions, less suited for one-off payments.

‍

Features

• Subscription Management: Automates billing, upgrades, and cancellations. Can help a company manage 200 subscriptions effortlessly.
• Dunning Management: Smart retries reduce failed payments. A tech firm can cut churn by 10%.
• Customer Portal: Customers update billing details, reducing support queries.
• Revenue Analytics: Tracks ARR, MRR, and churn. Ability to monitor $500K in subscriptions.
• Multi-Currency Billing: Supports AUD, USD, and 100+ currencies.
• Tax Compliance: Applies GST and generates BAS-ready reports.
• Integrations: Connects with Stripe, Xero, Salesforce, and Zapier.
• Example: A tech startup’s customer portal reduces admin time by 20 hours/month.

‍

Combining Stripe and Chargebee for Australian SMEs

• Workflow: One-time fees (e.g., setup costs) are processed via Stripe’s checkout. Subscriptions are handled by Chargebee, using Stripe as the gateway. Both sync to Xero.
• Example: A Sydney tech company charges $5,000 setup fees via Stripe and $500/month subscriptions via Chargebee, with GST recorded in Xero.
• Combined Costs: A Canberra e-commerce SME processes A$200,000/month (80% one-time via Stripe, 20% subscriptions via Chargebee). Stripe fees: A$160,000 × 1.75% + 1,600 transactions × A$0.30 = A$3,280. Chargebee Scale Plan + Stripe fees for A$40,000: A$549 + (A$40,000 × 1.75% + 400 transactions × A$0.30) = A$1,369. Total: A$4,649/month.
• Benefits: Combines Stripe’s flexible payments with Chargebee’s subscription automation.
• Pitfall: Overlapping features (e.g., Stripe’s subscriptions vs. Chargebee’s billing) lead to redundant costs. Sometimes an SME can pay for both platforms’ invoicing unnecessarily.
• Solution: Assign one-time payments to Stripe and subscriptions to Chargebee, disabling redundant features.

Action Item: Budget for Stripe’s transaction fees and Chargebee’s subscription costs, factoring in overage risks. Compare with PayPal (2.6% + A$0.30 domestically) for cost-effectiveness.

‍

Conclusion

For Australian SMEs in e-commerce, tech, and retail, Stripe and Chargebee offer a powerful payment collection solution. Stripe’s low-cost, developer-friendly platform excels for one-time and global payments, while Chargebee’s subscription automation streamlines recurring revenue. Xero integrations ensure ATO-compliant GST reporting and BAS lodgement. Costs can escalate with international transactions or Chargebee overages, and setup requires technical oversight. By using Stripe for one-time payments and Chargebee for subscriptions, SMEs can optimise cash flow, compliance, and customer experience.

‍