SaaS Billing Software: 7 Tools across 3 Categories and What to Consider -

SaaS billing software automates one or more aspects of the process of recurring billing such as payment processing dunning, fulfillment, and more.

In this piece, we'll be comparing 7 SaaS billing services that we separate into three types:

1. Subscription management This kind of software lets you automate free trial and recurring payment plans, and also the dunning procedure. You'll still need a separate system for payment processing, taxes, chargebacks, and many more.
2. Processing of payments: These solutions gather data about payments and enable the transfer between two people. Since there are many payment processors, you'll need additional software that can handle the complicated and recurring payment process, including charges, taxes as well as dunning.
3. Merchants of Record (MoR): Having your billing software also function as the MoR implies that they take care of the entire bill-paying process in SaaS for you, including the collection and remitting local and international taxes (such such as VAT and local sales taxes) as well as ensuring that you are in compliance with local laws and regulations as well as chargebacks and more. If you don't have a MoR, your business will need to keep track of and ensure that you are in compliance with local laws and taxes in any country or region where your customers are.

 Table of Contents

•   Your MoR the All-in-1 SaaS Billing
•   3. Subscription Management Software
•     Chargebee
•     Chargify
•     Recurly
•   3 Payment Processors
• Verifone (formerly 2Checkout)
•     Stripe
•     Braintree

The MoR you receive for all-in-one SaaS billing

Here's an overview of what it looks like for the MoR to serve as your representative:

Customers visit your site to select their software subscription. Then, when they go to check out, the system handles the checkout and closes the purchase. It works just like most other SaaS payment processors with one crucial aspect: it acts as your merchant of record.

 The benefit from this is twofold.

1. relieves you of the burden of paying the local consumption tax and keeps you up-to-date on local transactions laws, managing subscriptions, payment processing, and so on. If something goes wrong regarding local taxes, compliance with local laws charges, authorization rates, chargebacks, etc., takes the lead to resolve the problem in your name.
2. All of your SaaS billing solution is accessible from one place -- your Dashboard. Plus, you're only charged one flat rate for all services (more on this later).

The next step is to take an in-depth look at how helps you with each piece of the bill process. Specifically:

•   Checkout
•   Process Payment
•   Collection and Payment of Consumption Tax
•   Subscription and Recurring Payment Management
•   Retention Management
•   Analytics, Reporting and Analysis

Checkout: Customization of the Checkout for Higher Conversions

Some businesses lose clients due to too much hassle in the checkout process. In particular when the checkout page doesn't visually match the branding of the of the website, a potential buyer is less likely to believe that the payment process is secure. Also, the customer might choose not to purchase since you do not accept the payment method you offer (a particular issue for international customers).

Most payment processors will provide you with checkout templates with a couple of simple customizations such as the addition of your logo. However, these checkout templates rarely provide the customization abilities that you require to improve your checkout to achieve high rate of conversion.

 , on contrary, offers branding tools, CSS-overrides as well as a JavaScript library of common ecommerce options, allowing you to have complete control of each part of your shopping experience.

Here are a few other features that offers to help you optimize your checkout:

• Preferred payment methods: While Visa or PayPal are popular within the U.S., other forms of payment are utilized across other nations. If you do not offer the payment method of choice that buyers are used to then you'll lose fewer of them into customers. It can also be laborious and draining on resources to add different payment options. makes it possible for you to add tons of preferred payment methods around the world in a matter of minutes (more on this later in the section).

• Text Translations: If your checkout doesn't use the same language as other pages on your website it could result in losing some customers. With , you can let customers choose their preferred language when they check out or let them select the correct local language according to their place of residence.
• Conversions to local currencies: Some customers will hesitate to buy because they do not know (or have to figure out by themselves) what the software is going to cost them in their currency of choice. This is solved by automatically changing the price to the local currency upon checkout. Alternatively, you can set a custom price to the currencies of each.
• Flexibility in integration choices: Part of choosing the most appropriate checkout method is choosing whether to integrate it on your website or redirect users to a separate site. There are three choices available to you: 1) Embed the checkout directly onto your website, or) insert a pop-up over your website, and) redirect your customers to a separate page completely branded with your company's logo. These two options require just a couple lines of HTML as well as Javascript while the third is provided by . We will host your entire storefront and checkout for you and your brand.

• Personalized support: If you need assistance our engineers in software can assist you to in the design and development of the perfect checkout for your business (regardless of how big or small your business).

NOTE: We also provide an online checkout template that's been optimized for conversions, but many companies find that it's easy to implement a custom solution with .

Pay Processing: Improve Authorization Rates With Localized Payment Gateways

Many times, buyers try to buy but the payment method fails or is too slow to process, so they can't follow through with the purchase.

assists in improving authorization rates so that you earn more money through a variety of ways:

• Rerouting payments from the gateway If a payment fails at the first try, the system instantly retries it with a different gateway- all without either you or any other member of the support team needing to intervene. This often solves payment failures caused by connectivity or system issues.
• Managing preferred payment providers: As we mentioned in the past, support for the new methods of payment can result in a huge burden on resources. Each card network and issuing bank has different tolerance levels for chargingbacks and fraud as well as distinct rules for how transactions are conducted. If you're not in compliance with these regulations The card company will likely stop authorizing payments. We are responsible for keeping up with the various requirements of payment providers which means we take care of chargebacks, fraud and other problems for you.
• Localizing payment processing: Card networks are more likely to accept transactions made via a local processor. For example, if the customer is located situated in Italy the merchant has to be an official entity with a legal entity in Italy to get higher rates of authorization. works with payment processors around the globe to ensure all payment transactions are locally based.

Collecting and Remitting Consumption Tax: Expand Globally Without Hefty Fines

A few SaaS billing software will help in collecting tax, however, at the end of the day, you're responsible for collecting and remitting an appropriate amount when it's due. It's a major task for any business.

 Because acts as your MoR, we take care of all the aspects of collecting and remitting consumption tax for you.

Automatically calculates the appropriate type and amount of tax, and then adds the tax to the cost for the customers at the time of checkout (we can also assist with tax-free transactions, as well as other specific circumstances). After each tax season, we file taxes with every jurisdiction. We'll also take the lead on audits.

Manage Recurring and Subscription Billing Make Custom Trials and Subscriptions While Being Compliant with Local Jurisdictions

There are a variety of subscription management programs which offer a variety of options for trial and recurring subscription plans. If you choose the best trial and recurring billing model it is possible to attract more customers and boost the amount of revenue.

But it is true that your subscription plans will only be successful if they adhere to local regulations and laws. For example, several states, provinces as well as countries do not allow auto-pay on transactions that exceed the amount of.

Many subscription management tools will notify you when they are aware of changes to laws and regulations, but you're ultimately responsible. If you don't follow these constantly changing laws and regulations You could be subject to heavy penalty or ban from conducting business in that area.

 relieves you of this burden by taking full obligation to adhere to local laws and regulations for transactions.

Our experts in legal matters stay up to date on every legal aspect and make certain that the proper processes are in place to collecting payments. It is possible to begin selling products in over 200 regions in just a few hours as we've already set up the necessary processes in each region.

Also, offers a variety of pre-configured trial and subscription options , so that you can design your own solutions using no code. Or, you can use the API and webhooks library to create complex subscription logic and integrations.

 Here are a few examples of the kinds of trials and billing logic you can design using

• Free or paid trials
• Trials that do not require payments details
• Trials that automatically upgrade to a paid plan
• Subscription intervals of any length
• Prorations mid-cycle
• One-time purchase is added to recurring installment
• Discounts, upsells, cross-sells and much more

Retention Management: Limit the risk of involuntary churn by implementing proactive dunning.

Because involuntary churn is among major reasons why subscription-based companies lose customers, the majority of SaaS billing software offers the basics of retention management, for example, retrying unsuccessful payments as well as email notification sent to customers after an unsuccessful payment. These features, however, are only helpful following the payment fails.

lets you turn on active notifications which remind the client to correct their payment details before the transaction takes place. In our experience, these proactive reminders can drastically reduce the amount of failed payments initially.

After a failed payment the payment fails, you are able to send reminders automatically to your customers for two seven, 14, and 21 days after the failure of a payment. During the 21 days, your customer's service won't be interrupted. By sending out regular reminders, and maintaining the service, customers are more likely to change their details, which will reduce uninvoluntary churn.

offers a self-service portal through which your customers can update their information and modify or upgrade the subscription they have. With customers able to manage their own accounts, you'll have less hassle in your customers' experience, which means higher profits. The self-serve portal can be tailored to suit your brand identity but it's managed by our team to ensure that your staff doesn't need to worry about it.

Analytical and reporting Consolidate Business Choices

Analytics and Reporting will help you determine how each product contributes to the bottom line of your business, which coupon or promotion is working, which subscription models generate the most revenue, and much more.

 The dashboard for revenue offers a full review of cash flow including:

• Where your customers are located
• Which currencies and methods of payment do customers prefer
• Net sales of the product
• Total transactions by the country
• Plus

 The dashboard of your subscription allows you to dig into the monthly recurring income (MRR) as well as SaaS parameters, including:

• Cross-sells, upsells, as well as additional products
• The long-term value each customer can bring to the company
• Customer churn is the total
• In the cycle of billing, churn happens most often
• Plus

Through's reporting function allows you to build and save custom reports which lets you access all the information you require, when you need it. Our experts can assist users use these reports to discover the information you require to expand and improve your SaaS business. Additionally, you are able to communicate any report to key users via the dashboard, or as a CSV, PNG or XLSX spreadsheet.

Plan for the Future With Flat-Rate Pricing

In the case of most SaaS billing software will require you to install additional software or switch to the least costly plan in order to gain the capabilities you want.

On the other hand, is a fully-integrated payment service that means you'll not require other billing software. Plus, all of 's offerings are provided at one cost (without the cost of migration).

Our team works in partnership with you to determine an affordable price based upon the amount of transactions you move through , and you'll only be charged for transactions that occur.

3 Subscription Management Platforms

Chargebee: Built for Complex Subscription Logic

Chargebee is an extremely popular option to manage subscriptions and revenue management. Chargebee is compatible with a range of payment methods and payment gateways, however, you'll be responsible for partnering with and configuring each one.

Some of Chargebee's features include:

• Self-serve and automated subscription models
• Invoicing and billing can be automated.
• Flexible pricing plans
• Quote management tool
• Smart dunning
• PCI-compliant checkout

Chargify: Subscription Management for B2B SaaS

Chargify is a software for subscription billing built specifically for B2B SaaS. In the moment of publication, Chargify is in the process of joining forces with SaaSOptics and forming an entirely new company in software, Maxio. As a result of this collaboration users of Chargify will be able to gain access to payment processing services, however, you'll still require a separate system for taxes and legal compliance.

Other important Chargify characteristics comprise:

• Dozens of pricing and trial models
• Custom sign up experiences
• Automated dunning
• Self-service Analytics Suite
• Recognition of revenue

Recurly Supports Multiple Payment Gateways

Recurly is a subscription-based and billing platform for optimizing your growth strategy. Recurly advertises the ability to easily integrate with various payment gateways and merchant accounts, however, you still must manage and cover these additional services on top of your Recurly plan.

The services offered by Recurly include:

• Customizable subscription models
• Automated recurring invoicing
• Revenue recovery tools
• Intelligent retention
• Analytics on subscriptions

3 Payment Processors

Verifone: Payment Platform for Enterprises

Verifone (formerly 2Checkout) allows you to choose between an MoR model or a payment processing model. Although startup companies may be able to use the services of Verifone, Verifone tends to be more towards large corporations.

Verifone's main features include:

• Reporting and analytics
• Global tax and financial and banking services
• Compliance and risk management
• B2B quote builder
• Channel partner management

Stripe: Well-Known Payment Processor

Stripe is a processor for payments that allows transactions online as well as in person. Though Stripe has a couple of subscription management features, they often recommend integrating with Chargebee to offer more extensive services for recurring billing that means you'll need to manage and pay for two platforms.

Some of Stripe's other features comprise:

• Checkout
• Management of risk and fraud
• Payments online
• Pay in-person
• Controlling subscriptions
• Virtual and physical card issuing
• Business spend management for subscriptions

Braintree: PayPal's Solution for SaaS

Braintree from PayPal is a processing company that supports Venmo (in the US), Apple Pay, and Google Pay. They also offer some SaaS subscription management features.

Braintree also has other noteworthy offerings. Braintree are:

• Merchant accounts
• Improved checkout flow
• Flexible risk mitigation options
• An analysis of the subscription lifecycle
• Integrations with third party integrations to help you manage recurring bills, accounting, and more