Merchant Account for SaaS Companies
SOFTWARE AS A SERVICE
Why eDataPay proudly Offer Solutions for SaaS Businesses
(Even When Many Processors Don’t)
Finding an online merchant account for a SaaS company has never been more difficult. Due to their simplicity of use and affordability for small businesses and enterprises alike, SaaS, or software-as-a-service, companies have risen in popularity in recent years. In 2018, the industry generated an estimated $72.2 billion in revenue, which is expected to rise to $113.1 billion by 2021, according to forecasts. So, if you’re starting a SaaS business or thinking about starting one, you’ve come to the correct place. Consider including a high-risk SaaS payment processor into your company plan so that you can accept any type of payment online, including debit, credit, and ACH. This strategy will assist your company in becoming more profitable more quickly.
Software as a Service (SaaS) businesses are one of the most rapidly increasing forms of businesses. Unfortunately, many merchant service providers refuse to collaborate with SaaS enterprises for three reasons:
- The majority of SaaS companies offer their products largely through the Internet. Because the card and cardholder are not present when the transaction is executed, internet sales are frequently regarded as “high risk” in the merchant services business.
- Due to recurring billing structures, technological difficulties, and other software delivery and implementation challenges that can arise, many SaaS organizations have a somewhat high chargeback rate.
- Finally, a few “bad apple SaaS enterprises” within this sector have tarnished the industry (in the context of merchant services).
Many merchant services providers refuse to accept any SaaS business because of these three hazards, whether they sell software they’ve produced, sell SaaS solutions with trusted partners, or use other techniques.
Since its inception, eDataPay Payments Solutions has continually provided solutions for the SaaS market. eDataPay Payments Solutions is uniquely positioned to provide eCommerce and virtual terminal SaaS companies with stable, effective, long-term credit card processing solutions thanks to our extensive relationships with credit card processors and sponsor banks with the ability to underwrite regulated industries, as well as our integration of chargeback and fraud prevention software.
eDataPay Payments Solutions provides merchant processing services to a variety of software-as-a-service organizations. Quality SaaS solutions are now available for all types of enterprises and individuals. We should be able to assist you establish a merchant account if your SaaS company offers HR administration, accounting, inventory, gym software, scheduling software, or any other number of useful products.
Our SaaS firm merchant accounts interface with most prominent software suites since eDataPay Payments Solutions works with most major payment gateways (including eData Bridge Pay, ACI, Authorize.net, USAePay, and NMI). We aim to make integration as straightforward as our application procedure!
eDataPay can work with companies situated in the United States Europe and Latin America at this time. Furthermore, ownership must be based in the region, with identification and supporting Bank statements, Company and personal ,credit history issued in the United States if applicable and so on. We can deal with companies who conduct a large number of foreign transactions thru our multi-currency preforms.
eDataPay is the company to work with on all levels and platforms if you need a high risk merchant account for your SaaS company.
Multi-banking, several currencies, and improved security with quick payouts.
Your firm may be established around a subscription-based model, depending on the nature of your business. You can charge users every month for access to your product using a subscription-based, or recurring billing model. This business model, which is popular among SaaS companies, allows customers to access software programs and apps at a lesser cost without ever having to update the software themselves.
Subscription-based models, on the other hand, necessitate the use of a merchant account due to their particular nature. This allows you to charge your clients’ credit cards automatically every month. Because subscription billing exposes you to chargebacks, not all merchant account providers provide this option. Furthermore, due of the inherent risk, many traditional financial institutions will not cooperate with SaaS companies.
This is why it’s critical to find a high-risk credit card processing firm that can provide you with everything you’ll need to make your startup a success.
Many Credit Card Processing Companies Don’t Work with SaaS
- Most credit card processors refuse to engage with SaaS businesses since it is a High Risk investment for them. To be evaluated by traditional processing providers, businesses in “high risk” industries must meet certain criteria, including a low chargeback rate, which is challenging for many.
- Here are some additional reasons why credit card processing companies are hesitant to engage with SaaS businesses like yours.
- • As you may have noticed, subscription-based businesses tend to have a large amount of chargebacks. Other difficulties, such as technical glitches and other issues that may arise when using the software, have an impact on a SaaS company’s chargeback rate.
- • Many SaaS organizations use the internet to find and close consumers. Because it puts your business at risk of fraud if the card and cardholder are not present when the transaction is completed, many merchant service providers aim to avoid it. Meanwhile, because the market is still relatively new, unethical or dishonest business owners may try to make more money by using unethical or fraudulent tactics. These individuals have contributed to the industry a bad reputation, one that banks and merchant service providers want to avoid at all costs.
This is why you should look for a provider that specializes in setting up merchant accounts for SaaS companies. They will be familiar with the difficulties specific to your sector and may have specialized solutions to assist you avoid chargebacks and merchant services fraud and keep your business running smoothly.
Steps to Getting a SaaS Merchant Account for Your Company
(1.) Consider Your Business’s Specific Needs
The merchant service provider you choose must fit with your company’s business model and unique needs. After all, if it’s not a good fit, what’s the point?
Examine the purchase behaviors of customers in your industry. Do they prefer to pay for your products with echecks ACH? How about an online payment gateway where they can key in their credit card information? If you know your consumers prefer ACH payments, you should look for a business that specializes in ACH payment processing. Consider whether your existing payment process is causing you or your consumers any problems. If that’s the case, you’ll want to find a merchant service provider who can assist you with that. You should aim to provide your customers with a seamless, integrated payment experience as well as software access.
Make a list of all the characteristics you’d like your merchant service provider to possess. It’s time to move on to the next phase now that you have that.
Prepare Your Merchant Account Application
The final step in obtaining a merchant account for your SaaS business is to submit your application. Don’t worry if you’ve never completed one before. Your personal account representative will be available to assist you every step of the way.
However, in order for the procedure to proceed as smoothly as possible, you’ll need to have the following information on hand ahead of time:
- Your Social Security Number (SSN) and Employer Identification Number (EIN) • The bank name, as well as the account and routing codes for your personal and business bank accounts • Your Social Security Number (SSN) and Employer Identification Number (EIN)
- Proof of your company’s existence and marketing methods (if appropriate), such as your website and social media accounts • Financial statements from your personal and corporate bank accounts dating back at least three months
Of course, before sending your application, you’ll want to double-check that everything seems real and trustworthy on your end. Anything that appears suspicious can cause your application to be delayed or even denied. The bank will need a few days to assess your application after it is received. Following that, you’ll get a notice informing you whether your account has been accepted or refused, as well as the next actions you need to follow.
If all goes smoothly, your SaaS Company will now have a high-risk payment processor! Accept online payments with ease, and watch as your business expands in leaps and bounds.