Ending your Paddle.net membership made easy

About Paddle.net

Paddle.net is a comprehensive payment platform and merchant of record service that handles billing, tax compliance, and subscription management for software companies and digital product sellers worldwide. Founded in London in 2012, Paddle has grown to serve thousands of businesses by taking on the complex responsibilities of payment processing, VAT compliance, and customer billing across multiple jurisdictions.

What sets Paddle apart from traditional payment processors is its merchant of record model. This means Paddle acts as the legal seller of your products, handling all the regulatory compliance, tax remittance, and fraud prevention on your behalf. For businesses selling software subscriptions, digital downloads, or SaaS products, this removes significant administrative burden and legal complexity.

The platform processes payments in multiple currencies, manages subscription renewals automatically, and provides detailed analytics about your revenue streams. Paddle integrates with popular development tools and platforms, making it particularly attractive to software companies who want to focus on product development rather than payment infrastructure.

Most importantly for our purposes today, Paddle operates on a contract basis with its merchants. This means cancelling your service requires following specific procedures and understanding the terms you agreed to when signing up. Many businesses discover this when they attempt to cancel and find the process more involved than simply clicking a button.

Plans, features and pricing

Paddle operates on a revenue-share pricing model rather than traditional monthly subscription tiers. This approach means you pay based on your transaction volume, which can be advantageous for new businesses but potentially costly as you scale.

Standard pricing structure

The standard Paddle pricing includes a 5% transaction fee plus payment processing fees. Keep in mind that this percentage applies to your gross revenue, not your profit, which significantly impacts your margins. Additionally, payment processing fees vary depending on the payment method and region, typically ranging from 2% to 5% for card payments.

Core features included

Paddle provides a comprehensive suite of features that justify its pricing for many businesses. The platform handles global tax compliance automatically, calculating and remitting VAT, GST, and sales tax across over 200 jurisdictions. This alone saves businesses considerable accounting costs and legal headaches.

The subscription management system includes automated billing, dunning management to recover failed payments, and customer self-service portals. Paddle also provides fraud prevention tools, chargeback management, and detailed revenue analytics. For software companies, the platform offers licence key generation, software distribution, and integration with popular development frameworks.

Enterprise and custom pricing

High-volume merchants can negotiate custom pricing arrangements with lower percentage fees. These enterprise agreements typically require minimum revenue commitments and longer contract terms. Most importantly, these custom contracts often include stricter cancellation terms and early termination fees that can be substantial.

Many businesses cancel Paddle when they reach a scale where the percentage-based fees become prohibitively expensive compared to building in-house payment infrastructure or switching to traditional payment processors with fixed fees. Others cancel due to integration issues, customer service concerns, or simply because their business model has changed and they no longer need a merchant of record service.

Terms of service and cancellation policy

Understanding Paddle's terms of service is absolutely critical before attempting to cancel. The cancellation policy contains several provisions that catch merchants by surprise, particularly regarding notice periods and financial obligations.

Contract duration and commitment periods

Paddle typically operates on annual contracts with automatic renewal clauses. Your initial agreement likely specified a minimum commitment period, commonly twelve months. This means even if you want to cancel after three months, you may remain financially obligated for the full contract term. Additionally, contracts usually auto-renew for another full term unless you provide notice within a specific window.

The notice period for cancellation is typically 30 to 90 days before your renewal date, depending on your specific contract. Missing this window means you're automatically committed to another full contract period. This is where many merchants get caught out—they assume they can cancel anytime and discover they're locked in for another year.

Financial obligations upon cancellation

Even after providing proper notice, you remain responsible for all transactions processed through Paddle until your contract officially ends. This includes potential chargebacks, refunds, and tax obligations that may arise months after you stop actively using the platform. Paddle retains reserves from your final payments to cover these potential liabilities, which can tie up significant funds.

Early termination fees apply if you cancel before your contract term expires without qualifying grounds. These fees can range from one month's typical fees to the full remaining contract value, depending on your agreement. Custom enterprise contracts often have more severe early termination penalties.

Data and customer transition considerations

Upon cancellation, you need to consider how you'll handle existing subscribers and access to historical transaction data. Paddle provides data export functionality, but you must request this before your account closes. Most importantly, if you have active subscribers, you need a plan for migrating them to a new payment system, which Paddle's terms may restrict or complicate.

Legal requirements in the UK

Under UK consumer protection law, business-to-business contracts like those with Paddle are governed by commercial contract law rather than consumer protection regulations. This means you have fewer automatic rights to cancel, and the terms you agreed to largely dictate the cancellation process.

However, UK law does require that cancellation terms be clearly stated and not unfairly restrictive. If Paddle's terms are ambiguous or you weren't properly informed of cancellation restrictions, you may have grounds to challenge them. Additionally, if Paddle has materially breached the contract—such as by failing to provide agreed services or violating data protection obligations—you may have grounds for immediate termination without penalties.

Why postal cancellation is your most reliable option

After processing thousands of subscription cancellations, I can tell you that postal cancellation via Recorded Delivery is consistently the most reliable method for terminating business service contracts like Paddle. Here's why this matters specifically for payment platform cancellations.

Creating an undeniable paper trail

Payment platforms handle significant financial transactions and data, making disputes over cancellation timing extremely costly. If Paddle claims they never received your cancellation notice, you could be liable for another full contract term worth thousands or tens of thousands of pounds. Recorded Delivery provides signature confirmation and tracking that creates legally admissible proof of delivery.

Email cancellations can be claimed as spam-filtered, lost in busy inboxes, or sent to wrong addresses. Online portal submissions can be disputed with claims of technical errors or that you didn't complete the process correctly. Postal cancellation eliminates these ambiguities entirely—either the letter was delivered and signed for, or it wasn't, and you have Royal Mail's tracking to prove it.

Meeting contractual notice requirements

Many Paddle contracts specify that cancellation notices must be provided "in writing" to be valid. While some might interpret email as written notice, postal letters unambiguously satisfy this requirement. Additionally, the date of posting or delivery can be critical for meeting notice period deadlines, and Recorded Delivery provides definitive proof of both.

Keep in mind that some contracts specify notice must be "received" rather than just "sent" by a certain date. Recorded Delivery's signature confirmation proves receipt, protecting you from claims that notice arrived too late. This distinction has saved merchants from unwanted contract renewals countless times.

Professional formality for business relationships

Cancelling a payment platform relationship involves untangling complex financial arrangements. A formal postal letter demonstrates you're taking the cancellation seriously and following proper business protocol. This often results in smoother processing and more cooperative responses from Paddle's accounts team regarding final settlements and data transfers.

Cancelling by post - the complete guide

Now let's walk through the exact process for cancelling your Paddle account by post. Following these steps carefully will ensure your cancellation is processed correctly and you have complete documentation of every action.

Step one - review your contract thoroughly

First, locate your original Paddle agreement and read the cancellation clause word-for-word. Note the exact notice period required, any specific requirements for how notice must be given, and whether there are designated cancellation windows. Check your contract start date and calculate when your current term ends.

Most importantly, identify any early termination fees or financial penalties that apply. Calculate the cost of cancelling now versus waiting until your contract term ends. For some merchants, it's more economical to continue until the natural expiry rather than pay substantial early termination fees.

Step two - prepare your cancellation documentation

Gather all relevant account information including your Paddle vendor ID, the email address associated with your account, and your company registration details. You'll need to reference these in your cancellation letter to ensure it's processed against the correct account.

Document your reasons for cancellation, particularly if you're claiming breach of contract or service failures as grounds for avoiding early termination fees. Collect evidence of any issues—screenshots of system failures, correspondence about unresolved problems, or records of compliance failures. While you don't need to include all this with your initial cancellation letter, having it organised prepares you for potential disputes.

Step three - write your cancellation letter

Your cancellation letter should be clear, professional, and include all essential information. Start with your company details and Paddle account information at the top. State explicitly that you are providing formal notice of cancellation pursuant to your contract terms.

Specify the date you want the cancellation to take effect, ensuring this complies with your notice period requirements. If you're cancelling at the end of your contract term, state this clearly. Request written confirmation of your cancellation and the effective termination date.

Additionally, address practical matters in your letter. Request information about final billing, reserve fund release timelines, and data export procedures. Ask for confirmation of how existing subscribers will be handled and any obligations you retain after termination. Include your preferred contact details for all cancellation-related correspondence.

Keep the tone professional and factual. Even if you're frustrated with Paddle's service, emotional language doesn't help and may complicate the process. Stick to facts, contract terms, and clear requests for action.

Step four - send via recorded delivery

Take your signed letter to a Post Office and send it via Recorded Delivery to Paddle's registered office address. This service costs approximately £3-4 and provides tracking and signature confirmation. Keep your receipt with the tracking number—this is your proof of posting.

The official postal address for Paddle.net cancellations is:

• Paddle.com Market Limited
• Core B, Block 71
• The Plaza, 100 Old Hall Street
• Liverpool
• L3 9QJ
• United Kingdom

Send your letter early in the week to avoid weekend delays. If your notice deadline is approaching, consider using Royal Mail Special Delivery Guaranteed by 1pm for next-day delivery with higher compensation cover. This costs more but provides additional security for time-sensitive cancellations.

Step five - track and document delivery

Use Royal Mail's tracking service to monitor your letter's progress. Once delivered, the tracking will show the date, time, and signature of the person who received it. Take screenshots of this tracking information and save them permanently with your cancellation records.

Most importantly, if the letter isn't delivered within three business days, investigate immediately. Contact the Post Office with your tracking number to locate the item. If there are delivery issues and your deadline is approaching, send a duplicate letter via Special Delivery while continuing to track the original.

Step six - follow up and confirm receipt

Wait three to five business days after confirmed delivery, then contact Paddle to confirm they've received and processed your cancellation notice. Email their support team referencing your letter's delivery date and tracking number. Request written confirmation of your cancellation and the effective termination date.

If you don't receive confirmation within one week, follow up more assertively. Send another email marked urgent, and consider calling if you have a contact number. Keep records of all these follow-up attempts. The goal is to create a comprehensive paper trail showing you've done everything possible to ensure proper cancellation.

Step seven - manage the transition period

During your notice period, continue fulfilling all contract obligations. Process any pending transactions, respond to chargebacks, and maintain your integration. Failing to meet your obligations during the notice period could give Paddle grounds to claim breach and potentially pursue damages.

Next, prepare for the transition away from Paddle. Export all your transaction data, customer information, and tax records before your account closes. Set up your alternative payment solution and test it thoroughly. If you have active subscribers, communicate with them about any changes to their billing arrangements.

Additionally, ensure you understand what happens to your final payments and any reserves Paddle is holding. Confirm when you'll receive your final settlement and what deductions will be applied. Get this in writing to avoid disputes over missing funds later.

Using services like Postclic for postal cancellations

For merchants juggling multiple business obligations, services like Postclic can streamline the postal cancellation process significantly. Postclic allows you to create, send, and track cancellation letters digitally without visiting a Post Office. The service handles the printing, envelope preparation, and posting via Recorded Delivery on your behalf.

The key advantage is digital proof of everything. You receive confirmation when your letter is printed, posted, and delivered, all accessible through an online dashboard. This is particularly valuable if you're managing cancellations for multiple services or need to demonstrate due diligence to stakeholders or auditors.

Most importantly, Postclic ensures your letter is formatted professionally and posted promptly, eliminating the risk of delays from forgetting to visit the Post Office. For time-sensitive cancellations where missing a deadline could cost thousands in unwanted contract renewals, this reliability is worth the modest service fee.

Common mistakes to avoid

Having processed countless payment platform cancellations, I've seen the same mistakes repeatedly cause problems. Here's what to watch out for specifically with Paddle cancellations.

Missing the cancellation window

The most expensive mistake is missing your cancellation notice deadline. If your contract requires 90 days' notice before renewal and you send your letter 85 days before, you're automatically committed to another full term. Always calculate your deadline carefully and send your cancellation letter well in advance—at least two weeks before the deadline to account for any postal delays or processing issues.

Assuming email is sufficient

Many merchants send a casual email saying they want to cancel and assume that's sufficient. Then they're shocked when Paddle claims they never received proper notice and charges for another contract term. Unless your contract explicitly states email cancellation is acceptable and you have confirmed receipt, don't rely on email alone. Postal cancellation provides the legal certainty you need.

Not addressing financial loose ends

Cancelling Paddle doesn't immediately end your financial relationship. You remain responsible for chargebacks, refunds, and tax obligations that arise from transactions processed while you were using the platform. Failing to maintain contact information or respond to these issues can result in Paddle withholding funds or pursuing legal action. Make sure Paddle has current contact details and you've arranged how post-cancellation issues will be handled.

Failing to export critical data

Once your account closes, accessing historical transaction data becomes difficult or impossible. Export everything you might need for accounting, tax compliance, or customer service before your termination date. This includes transaction records, customer details, tax documentation, and any analytics or reports you reference regularly. Keep in mind that you may need this data for several years for tax audit purposes.

Tips from former members

After speaking with dozens of businesses who've cancelled Paddle, certain patterns and insights emerge that can make your cancellation smoother and less costly.

Timing your cancellation strategically

Several former Paddle merchants recommend timing your cancellation to coincide with natural business transitions. If you're planning to rebuild your payment infrastructure or switch platforms anyway, align this with your Paddle contract renewal date to avoid early termination fees. One SaaS founder saved over £15,000 in early termination fees by delaying their cancellation by three months to reach their contract anniversary.

Additionally, consider your transaction volume cycles. If your business has seasonal peaks, you might want to cancel after a low-volume period when final settlements and reserve releases will be processed more quickly. This also minimises the risk of significant chargebacks or refunds arising after your account closes.

Negotiating your exit

Don't assume the terms in your contract are non-negotiable. Multiple former members reported successfully negotiating reduced early termination fees or waived notice periods, particularly when they had legitimate service complaints or could demonstrate Paddle's failures. One merchant facing a £20,000 early termination fee negotiated it down to £5,000 by documenting repeated system outages that cost them sales.

The key is approaching negotiations professionally with documented evidence. If you're cancelling due to service issues, present a clear timeline of problems and your attempts to resolve them. If Paddle has violated contract terms—such as failing to provide agreed SLA levels or breaching data protection obligations—you may have grounds for immediate termination without penalties.

Planning your payment infrastructure transition

The most successful Paddle exits involved careful planning of the alternative payment solution. Several merchants recommended running your new payment system in parallel with Paddle for at least a month before cancelling. This allows you to test thoroughly, identify issues, and ensure continuity of service for your customers.

Most importantly, communicate clearly with existing subscribers about any changes. One software company that cancelled Paddle reported that transparent communication about their payment transition actually improved customer trust. They sent advance notice explaining the change, what customers needed to do (if anything), and how their subscriptions would be protected. This prevented a wave of cancellations that often accompanies payment system changes.

Maintaining records for compliance

Former members emphasise keeping comprehensive records of your entire Paddle relationship, particularly for tax and accounting purposes. HMRC may audit your VAT and tax records for up to six years, and you'll need access to transaction details from your Paddle period. Export and securely store all transaction data, tax remittance records, and financial reports before your account closes.

Additionally, keep all correspondence related to your cancellation—your cancellation letter, delivery confirmation, Paddle's acknowledgment, and any subsequent communications. Several merchants reported disputes arising months after cancellation regarding final settlements or liability for chargebacks. Having complete documentation allowed them to resolve these quickly and in their favour.

Understanding the real cost of switching

Multiple former Paddle merchants noted that the headline savings from switching to cheaper payment processors didn't account for hidden costs. When Paddle handles tax compliance, fraud prevention, and subscription management, moving to a basic payment processor means you'll need to build or buy these capabilities separately. One e-commerce business calculated they were saving 2% on transaction fees but spending £3,000 monthly on additional compliance and fraud prevention tools.

This doesn't mean you shouldn't cancel Paddle, but be realistic about total costs when evaluating alternatives. For some businesses at certain scales, Paddle's comprehensive service justifies the premium pricing. For others, building in-house capabilities or using specialized tools makes more sense. Calculate the complete picture before committing to cancellation.

Leveraging the cancellation for better terms

Several merchants reported that initiating cancellation prompted Paddle to offer improved terms to retain them. Once you've sent formal cancellation notice, Paddle's retention team may contact you with reduced fees, enhanced support, or other concessions. One merchant received a 1.5% reduction in platform fees and dedicated account management after submitting cancellation notice.

Keep in mind that you shouldn't rely on this—send your cancellation with genuine intent to leave. But if Paddle offers improved terms that address your reasons for cancelling, you can typically withdraw your cancellation notice if you're still within your contract term. Just ensure any new terms are documented in a formal contract amendment, not just verbal promises.

Cancelling a payment platform like Paddle requires careful attention to contractual obligations, proper documentation, and strategic timing. By following the postal cancellation process outlined here, you'll create an undeniable record of your cancellation, protect yourself from disputes, and ensure the smoothest possible transition to your next payment solution. Remember that the few pounds spent on Recorded Delivery and the time invested in proper process can save you thousands in disputed charges or unwanted contract renewals.