How to deal with recurring payments for SaaS apps?

Being paid for your products and services is probably one of the most rewarding things you’ll experience as a SaaS entrepreneur. It means you are building something that customers value so much that they are willing to hand over some of their hard earned money to you. Are you ready to receive this money? 

Many SaaS companies today automate the process of invoicing, billing and receiving money. Unless you only work for a handful of enterprise customers that you invoice according to individual contracts, this automation is the only way to go to keep track of which user/customer owes you how much. Once you start to scale up it is about the only option. Most SaaS companies opt to go with some sort of payment provider. Companies like stripe.com, recurly.com, but also good old paypal are just a few of the many options a SaaS company has to implement its recurring billing. Most of these work with credit cards, although some work with debet cards too. What they all have in common, is that the payment providers will take a (small) fee per transaction. That € 9.99 you’ll charge your customers, will only be € 9 or so when it arrives on your bank account. 

Source: Sirris blog

 

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