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Best Payment Processors for SaaS

Expert recommendations for subscription-based software companies

What SaaS Businesses Need

SaaS companies have unique payment processing requirements:

  • ✓ Subscription billing and recurring payments
  • ✓ Metered billing and usage-based pricing
  • ✓ Developer-friendly API
  • ✓ Webhooks and real-time events
  • ✓ Dunning management for failed payments

Top Payment Processors for SaaS

Stripe

★★★★☆ 4.5/5

The clear winner for SaaS businesses. Stripe's subscription billing is second to none, with excellent API and developer tools.

  • Subscription billing
  • Metered billing
  • Prorations and upgrades
  • Dunning management
  • Excellent API

PayPal

★★★☆☆ 3.5/5

PayPal offers subscription billing, but it's less flexible than Stripe. Good for simple subscription models.

  • Subscription billing
  • Easy integration
  • Brand recognition
  • Limited customization
  • Basic API

Authorize.Net

★★★☆☆ 3.8/5

Authorize.Net offers recurring billing features, but requires more setup and has monthly fees.

  • Recurring billing
  • Customer profiles
  • Established service
  • Monthly fees
  • Complex setup

SaaS Payment Processing Tips

1. Choose a Processor Built for Subscriptions

Not all payment processors handle subscriptions well. Look for features like prorations, plan changes, and dunning management.

2. Implement Dunning Management

Failed payments are common with subscriptions. Use dunning management to automatically retry failed payments and recover revenue.

3. Use Webhooks for Real-Time Updates

Webhooks allow your application to respond immediately to payment events like successful charges, failed payments, and cancellations.