How to pick a recurring billing & payment provider

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Subscription management and recurring billing apps can be a bit overwhelming in regards to what it all means.
In order to save you the confusion, we have created a beginner’s guide to subscriptions, payment gateways and merchant accounts.

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How to pick a recurring billing & payment provider

  1. 1. How to Pick a Recurring Billing & Payment Provider Referral SaaSquatch The Customer Referral Program for Web Apps
  2. 2. Overview Subscription management and recurring billing apps can be a bit overwhelming in regards to what it all means. In order to save you the confusion, we have created a beginner’s guide to subscriptions, payment gateways and merchant accounts. As well as defining these aspects, the companies who provide these services are listed. ReferralSaaSquatch.com @getSaaSquatch
  3. 3. Overview Payment  Gateways   Merchant  Accounts   Subscrip7on  &  Recurring  Billing  Programs   Company  Comparison  Charts   How  Do  I  Pick  What’s  Right  for  Me?   An  Addi7onal  Method  to  Narrow  it  Down.   ReferralSaaSquatch.com @getSaaSquatch
  4. 4. Payment Gateways Payment Gateways are the backbone of online payments and e-commerce of all kinds. If someone is taking your credit card online, they are probably using a Payment Gateway. These gateways connect you to all the major credit card companies in order to make it easy to collect any kind of credit card you want without having to submit to Payment Card Industry (PCI) compliance. ReferralSaaSquatch.com Source: hIp://7nyurl.com/qjlpm8j @getSaaSquatch
  5. 5. Merchant Accounts Once the credit card is charged, the payment needs to go somewhere. This is where a merchant account comes in. Essentially, a merchant account is a type of bank account that allows businesses to accept money from payment cards. If you wish to accept money online, you’re going to need a merchant account. You might not always realize one of these accounts is involved due to the fact that some Payment Gateways will provide you with this account behind the scenes. Regardless, there is always a merchant account in the mix. ReferralSaaSquatch.com Source: hIp://7nyurl.com/qzsctah   @getSaaSquatch
  6. 6. Subscription & Recurring Billing Services Payment Gateways and Merchant accounts have you covered when you want to charge a credit card and make sure that the money ends up in your account. But, what about payments that need to be charged and/or adjusted every month? Subscription and Recurring Billing services contain a credit card vault and a list of recurring charges. These systems make sure that the right people get charged the right amount every month. ReferralSaaSquatch.com @getSaaSquatch
  7. 7. Subscription & Recurring Billing Services Some services focus entirely on the problem of Recurring Billing management and were built on top of existing payment gateways and merchant accounts. The companies that focus on recurring billing as their core have developed a bunch of features to make your life as a software developer easier. Examples of this include sending emails to your customers with their invoices, pro-rating upgrades and downgrades, and managing dunning (i.e. handling when a credit card has expired or rejected a charge). ReferralSaaSquatch.com @getSaaSquatch
  8. 8. Subscription Management: Comparison Chart  *Zuora also offers some finance features that don’t seem to require subscription integration. ReferralSaaSquatch.com @getSaaSquatch
  9. 9. Other Gateway Payment Models: Comparison Chart  *Zuora also offers some finance features that don’t seem to require subscription integration. ReferralSaaSquatch.com @getSaaSquatch
  10. 10. How Do I Pick What’s Right for Me?  In general, there are three major questions you must ask yourself in order to narrow down your search: What do your payments look like? Where are you? How much can you spend? ReferralSaaSquatch.com @getSaaSquatch
  11. 11. Question 1:What do your # Payments Look Like? Are  you  doing  simple     plan-­‐based  billing  or  are  you  charging  for  variable   usage?   If you’re building something complicated, then you probably want to look at a company that focuses on SaaS as their primary business. ReferralSaaSquatch.com If you’re doing simple plan-based billing, you'll be pleasantly surprised at how easy it can be to configure a Hybrid gateway to fit your needs. @getSaaSquatch
  12. 12. Question 2: Where are you? Some  providers  are   only  available  in   select  countries  or   regions.     What  is  the   assortment  of   providers  that  are   available  in  your   area?   ReferralSaaSquatch.com Payment processing law is complicated and highly regiondependent. You want to make sure you have the right mix of Payment Gateway and management layer to help you navigate the legal maze for where your company is headquartered, @getSaaSquatch
  13. 13. Question 3: How Much # Can You Spend? Most  hybrid  gateways  don’t  charge  extra  for  their  subscrip6on  layers.  This   allows  you  to  keep  the  cost  of  small  projects  rela7vely  low.   However,  if  you  need  the  power  of  subscrip6on-­‐focused  services  for  more   complex  projects,  you’re  going  to  have  to  pay  extra.   Most  companies  have  a  mix  of  a  monthly  fee  plus  transac6on  fee,  and  don’t  charge   extra  to  get  started.  However,  some  companies  charge  upfront  fees  and  only  work   with  clients  with  over  $1M  in  yearly  revenue.   ReferralSaaSquatch.com @getSaaSquatch
  14. 14. An Additional Way to Help # Narrow It Down At the end of the day, you need to make sure that you trust your provider to be easy to use, give good support, and grow along with you. ReferralSaaSquatch.com @getSaaSquatch
  15. 15. Want More Information? blog.referralsaasquatch.com http://www.slideshare.net/referralsaasquatch.com Referral SaaSquatch The Customer Referral Program for Web Apps

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