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SaaS Subscription Billing, or How to avoid getting your n*ts in a vice

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41–43 of 43 posts

Re: SaaS Subscription Billing, or How to avoid getting your n*ts in a vice

#41
Thank you for the very thoughtful write up about the reasons not to build billing and how Chargify has helped. The ownership of CC data is an important topic and many providers talk about the importance of this. Three things to consider

1) How often will you actually change gateways? I can tell that we have had the same gateway account for 7 years and processing millions of dollars a year and changed merchant accounts many times. The gateway industry is pretty much a commodity, very little price change, no difference between gateways so there is not much value in changing. There are reasons you might change merchant accounts as rates do change and volume can make a difference.

2) How to change. If you really do need to change gateways and keep in mind Authorize.net is not going out of business so that is not a consideration, think about the right way to do it. I would either slowly move accounts over as operations like CC updates happened or run multiple gateway accounts to diversify risk.

3) Where is the risk? The largest gateways are not going anywhere so your real risk with not doing billing on your own is the billing provider. And yes I am saying this and I am a co-founder at Chargify. Would you prefer to have your CC details held there or at a gateway where you can always access the token to make future charges? This gives you the ability to move billing providers compared with getting locked in.

At Chargify we take security very serious and have reviewed all of the different reasons around this topic and can tell you that today all CCs are stored at the gateway but in the future we will have an option that gives YOU the choice where to store this data and how.

Re: SaaS Subscription Billing, or How to avoid getting your n*ts in a vice

#43
post #40

Chargify seems to be on the right path. I do think they could use some work on their flexibility though. Holding credit card data is always a bitch. Paypal website payments pro's API lets you issue coupons and discounts that are baked into the initial signup. However midcycle its tough to issue a discount. They also have some bugs in their API with their callback urls etc.

Glad you think Chargify is the right path, love to hear what flexibility you want that we cannot give.

@dh I haven't looked over the product in 3 months or so, but there was some issue at the time that we felt we could do better in our own code we layed on top of paypal api.
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