Billing as well as Subscription Control: Comprehensive Comparison of 5 Options -

Most billing and subscription management tools allow:

• Build various trial and subscription models (e.g. Free or paid trial and Fixed price or usage-based subscriptions).
• Manage active subscriptions (e.g. upgrading or downgrades, as well as adding or removing products).
• Make payment or invoice notifications.
• Give your customers a self-serve portal where they can manage their accounts.
• Reports on the major performance indicators that drive the revenue.

But, many businesses discover that they need to use additional software for other aspects of the payment cycle, including:

• Payment processing
• The collection of VAT and sales tax
• Checkout translations
• Currency conversion
• Chargebacks
• And more...

If you're in need of one of these options then you'll have to make sure that these features are available through the billing software you choose (or seamlessly connect to other software applications).

In this tutorial, we compare five options by examining the subscription and billing features they provide along with the extra options they provide that begin with a deep dive into our solution for SaaS companies, .

 Table of Contents

1.   Chargebee
2.   Recurly
3.   Chargify
4.   Zoho Subscriptions

1.  The Subscription Management Process, Processing Payments and More SaaS Companies

There are a variety of options available for the management of subscriptions (which we discuss below), however, it's not just an online platform for managing subscriptionsWe're also the Merchant of Record (MoR) for software firms.

 As MoR, we take on transaction liability for you. This means we

• Make sure you collect and remit the correct amount of sales tax, VAT and GST to us.
• Make sure the necessary procedures and paperwork have been put in place to ensure you are compliant with the transaction laws at every place you sell.
• We are the first to lead audits.

 Plus, has comprehensive solutions for the entire cycle of payment, including:

• Localized checkout (i.e. currency changes, translations into languages design customization and much other features)
• International payment processing (for hundreds of payment options)
• Fraud detection
• Chargebacks
• Analytics and reporting
• and much and more...

In the next sections in the next sections, we will look at a few of these options and services in greater depth.

Custom Subscription and Recurring Billing Models for B2C or B2B

allows you to setup nearly any subscription in just a couple of clicks. The majority of subscription types without any code, but you can make more sophisticated subscription logic via our API and webhooks library.

Here's an overview of your options:

 Trials

Some subscription management tools will always collect payment details when potential customers sign up for trial periods, or even trials. Some potential clients may be enticed to lose interest and fail to complete the sign-up procedure. You can decide whether or not you want to gather data on payment for each trial.

You can also:

• Trials of any length can be created.
• Make free, paid or trial-based, usage-based ones.
• You can choose to bill the user after the trial is over or wait for them to initiate a payment manually.
• Reactivate subscribers' old trial accounts.
• You can choose when to send reminders of the trial's end (e.g. 3 days before trial end).
• Automatically detect when a single user attempts to sign-up for several trials. You can only allow one trial account.

 Subscriptions

Each product in a given business could get more success from various subscription models. As an example, lower-end products might be more effective if they are sold as a monthly subscription and top-tier items may be more effective if offered through an annual subscription.

Furthermore, what worked in the past may not be the best option in the near future.

We'll let you know:

• Pick the duration of the subscription as well as the billing date (or let your customers choose).
• Create subscriptions that auto-renew or that require manual renewal (i.e., customers have to enter payment details each time they're charged), or ask your staff to start the charge using API API (this is an excellent option for usage-based billing).
• Discounts and coupons are offered.
• Provide prorated billing when customers wish to downgrade or upgrade or even pause the service midway during the billing process.
• Add one-time purchases to the original bill but don't include recurring billings.
• Control cross-sell and upsell items during checkout.
• Offer customers the choice the storage of details about their payment (or decide for every customer).
• Automatically renew certain subscriptions for different subscriptions (e.g. after the end of an item or service).

 Recurring Billing and Invoicing

allows you to allow you to manage B2B orders along with B2C purchases using Digital Invoicing.

Digital Invoicing can help you:

• Manage and create custom quotes at any time (including personalized tags coupons, discounts and many more).
• Set expiration dates for quotes.
• Notes for your client or prospective customer.

Fully Branded Self-Service Features to Your Customers

offers a self-service portal through which your clients can:

• Renewal of subscriptions
• Monitor billing period durations
• Change payment information
• View payment history
• And there's More ...

We manage all of the maintenance of the backend for this portal which means that you don't need to.

As your MoR We handle your customer's billing inquiries, including cancellation requests, billing problems, questions about their subscriptions, and more. Our platform includes a customer portal that makes it easy for your customers to control their subscriptions.

Below is an example of a self-service website, but for a more seamless user experience, the whole portal can be customized to reflect your brand.

You can also enable buyer-generated quotes. This allows buyers to create a quote based on the items in the cart, without having to contact the sales department. This feature is very helpful to attract potential buyers who need approval before making purchases.

Local Transaction and Indirect Tax Compliance made Simple

There are two main aspects of compliance when it comes to transactions with recurring nature:

1. Transaction compliance (i.e. the system that you are using to collect payment).
2. Sales tax, VAT, and GST conformity (i.e., how you collect and remit taxes that are indirect).

In order to avoid penalties and fines, you have to consider the tax and transaction law for every place you operate within. In the following sections, we discuss:

• Examples of transaction laws that affect subscription-based companies.
• If software firms have to be able to collect VAT, sales tax or GST.
• What is the best way to handle all this .

Transaction Compliance

Each country, state each province and state has its specific laws and regulations regarding how companies can gather payment and save customer data. Most companies know about privacy laws such as GDPR, however there are other transaction regulations that aren't as popularly understood.

For instance, in certain nations, including Canada and Korea consumers are entitled by law for the prorated amount of their refunds if they cancel their subscription prior to the close of their payment term. This is only one instance for an aspect of the lifecycle of subscriptionsthe law and regulations are continuously evolving.

In the case of most subscription management software, you'll be on yourself to research transaction laws and regulations and follow the appropriate procedure. Furthermore, some platforms won't offer the necessary alternatives to meet the requirements of rules and laws (e.g. Certain services don't allow prorated refunds).

The other side, handles all of the above all of this for you. Our legal expert team stays up to date on any relevant law and regulations and helps you implement the necessary procedures to ensure compliance. Also, we support all subscription model for conformity.

Sales Tax, VAT and GST Compliance

Software companies weren't required to collect the sales tax or VAT, and GST, and in several jurisdictions, it's the case. But, tax laws for digital services and goods are rapidly changing in numerous areas.

Many nations are now requiring software firms to pay some type of indirect tax. Plus, some countries require digital businesses to submit tax returns regardless of whether they are eligible for tax exemption.

The final step is to pay sales taxes. This is usually more complex than filling out a tax form and wiring the funds. As the number of nations are imposing further rules to stay compliant.

Examples:

• Countries like Colombia, Japan, Mexico, Serbia, and others need representation locally, meaning you have to hire someone with a physical presence in that country in order to pay your tax liability. This can cost anywhere from $5k to $15k each year.
• Some countries like Serbia, United Kingdom, Taiwan, and others require electronic invoicing from any company selling in their country. The EU is rolling out universal electronic invoicing requirements by 2028.
• States like Taiwan, Indonesia, Nigeria, Vietnam, and others require you to pay taxes on income as well as to indirect tax.

handles the entire process of collecting and paying VAT, sales tax along with GST for you. .

We ensure the correct amount (and kind) of indirect tax are collected at checkout (including tax-exempt transactions within the US and no reverse charges when allowed internationally).

Then, our team remits the tax for you, and makes sure that all necessary procedures are in place for full compliance.

In the event that a foreign country or state comes to you with questions regarding tax compliance, we will help you figure out how best to respond -- even by providing copies and paste replies.

Worldwide Payment Processing to Dozens Of Payment Methods

Most payment processors focus their efforts around a particular location, while all payment processors have a finite set of payment options that they accept. For example, some payment processors have a goal of supporting transactions in the U.S. They'll therefore only accept those payment options that are well-known in the U.S. (e.g., Mastercard or Apple Pay) and they aren't going to support something similar to UnionPay as it is often employed in China.

Furthermore, many payment processors will only process payments in certain countries and currencies. For example, they may be able to support Amazon Pay but they won't take payments that originate from Turkey.

SaaS companies that want to accept payments around the world have to connect to and control multiple payment processors, which can be a huge undertaking.

The  SaaS firms automatically have access to multiple payment processors who specialize in international payment. maintains relationships with multiple payment processors and dozens of card networks , so it is not necessary to. Simply turn off our localized payments option and start accepting international payments immediately.

It also has a variety of features that assist in ensuring successful payment and reduce involuntary churn, for example:

• Local payment gateways: Transactions are more likely to be accepted if the payment gateway is in the same location that the purchaser (e.g., a transaction originated in Germany is processed through a payment gateway located within Germany). Automatically routes transactions through the payment gateway that has most favorable authorization rates for the location.
• Rerouting of payments by the payment gateway: If a transaction fails on the first attempt, automatically retries the payment using a secondary gateway -and all this without any member of your support team having to intervene. This often solves payment failures caused by connection issues or other system problems.
• Payment reminders that are proactive. If a customer's card is about to expire, notify the cardholder beforethe expiration date to ensure they are able to update the payment information. Use our ready-to-use notification template or customize your own message.
• Multiple follow-up notifications. If a recurring payment fails it is possible to schedule several payment failure notification messages to be sent two, five, seven fourteen and 21 days after the initial error. Prior to sending each reminder, will retry the payment.

Custom-Made Checkouts to Reflect Your Personal Brand

Many payment services have a checkout option that comes with a few possibilities for customizing it, like the addition of your logo, and selecting the colors. But these options for customization don't always reflect your visual brand and create a seamless experience for your customers, and make your checkout more efficient for the highest conversion rates.

 allows you to customize branding tools, as well as CSS overlays so that you have extensive customizations choices to alter the appearance as well as feel of the shopping cart.

Also, you'll be able to access Our Store Builder Library -- a JavaScript library that allows users to personalize the customer journey leading up to checkout.For example, you can create a cross-sell or upsell funnel. This allows you to improve your buyer's experience, resulting in higher rates of conversion.

Checkout is available in three different forms: embedded, popup, or as a web storefront. The web storefront redirects your customers to a separate page that is hosted by .

With any of these options (including the online storefront) it is possible to personalize the checkout process with branding tools as well as CSS-based overrides that match your branding.

There are many other options which can help you improve your checkout experience

• Localized Checkouts:Let customers choose their preferred language and currency , or let them select the most appropriate language and currency based on the country of purchase. Supports 19+ languages as well as more than 23 currencies.
  
• Personalized developer support:Our team is always willing to support you to create the perfect checkout experience for your company. Some companies only provide personalized support to their largest customers and do not provide support to smaller firms. At , we believe every firm deserves the same amount of consideration and attention.

Comprehensive Reporting and Analytics

• Where are the majority of my most profitable clients located?
• What products generate the most money?
• Which discounts bring in revenues vs. the revenue draining ones?
• And many more...

Reports are split into two main dashboards: Revenue Overview and Subscription Overview.

If you are unable to locate the report you're looking for then you are able to customize every report, and add it to your dashboard. Our staff is available to assist you in creating custom reports that will provide the information you require.

Our data API and webhooks make it easy to pull in revenue and subscription information to any tools for business or CRM you use. Each report is able to be downloaded as a CSV as a PNG, CSV or XLSX format.

All-in-One Pricing (No Hidden Fees)

Most payment service providers offer a flat fee for payment processing and a few core features, like embeddable checkout. But, typically, you'll have to pay extra for additional features, such as exchange rates or fraud detection. Very few payment platforms are a complete solution, so most companies need to add an additional piece of software. It's hard to expand globally when your company grows, as the cost will continue to rise as you require new features and applications.

is a comprehensive solution to pay designed for SaaS companies with everything included for a flat cost based on the volume of transactions . Plus, you'll only be paid when transactions occur.

Next, we cover four other payment systems for subscription-based businesses.

2. Chargebee

Here are some aspects of Chargebee features:

• Utilization-based billing, automatic invoicing, proration and more
• Automated process for the processing of accounts receivable
• Compliant revenue recognition and subscription models that are compliant with revenue recognition and subscription
• Support for in-app purchases
• Portal for self-service to customers
• Smart dunning

The Chargebee platform free of charge starting with the initial $100k revenue earned. After that, they offer different pricing plans that cover different levels of monthly income.

3. Recurring

Recurly is a recurring bill system designed to optimize the growth plan you have in place. Recurly can easily be integrated with multiple payment gateways and merchant accounts, however, you still have to manage and cover these additional services on top of your Recurly account.

Here are a few additional highlights from Recurly's offerings:

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

Recurly offers three pricing packages However, you need contact their support team for more details.

4. Chargify

Chargify is a subscription-based billing application that is working on a merger with SaaSOptics which is a Revenue management system. This merger will let you automate the management of subscriptions accounting for revenue and expenses, and SaaS measurement tracking in one revenue management platform.

Below are some highlights of the features Chargify has to offer:

• Usage-based and global billing
• Revenue recognition and billing management tools
• System of billing analytics and metrics
• Built-in integrations with various different software (e.g. accounting software such as QuickBooks and Xero)
• International payment gateways

Chargify specifies a pricing plan for businesses that earn at least $75k per month in billings however, if your company earn more revenue or want access to all features it is necessary to reach their team.

5. Zoho Subscriptions

Zoho Subscriptions is one piece that is part of the Zoho platform (a suite of software for every aspect of your business, e.g., CRMs and ERPs). If you're already using this feature of the Zoho platform, this might be an choice. For new users, they usually find that there is an arduous learning curve.

The benefits of Zoho Subscriptions comprise:

• Multiple pricing models
• Invoices with tax-compliant customization
• Conversions to multiple currencies
• More than 30 pre-built reports that track each stage of the subscription lifecycle
• Support for in-person cash and check payments (in addition to credit card transactions)
• Out-of-the-box integrations with other billing options (e.g., Stripe, PayPal and so on.)
• Toolkits to build specific workflow rules

Every aspect that is part of Zoho's Zoho platform is priced individually -- including Zoho Subscriptions, which makes it challenging and costly to develop an all-inclusive payment system.