Management software is designed to help streamline projects and tasks for businesses. Management software can be anything from financial management software, customer relationship management software, inventory management software, and more.
Management software provides a service for businesses to help them grow and succeed in a competitive and ever-changing marketplace.
Typically management software is offered on a subscription basis. Companies may pay monthly or annually for more cost savings.
Because software is a service, it can be billed as a continuity subscription-based model. This allows businesses to have recurring revenue each month without putting in too much extra effort to keep customers coming back.
Subscription billing offers many benefits for SaaS businesses. It streamlines the billing process and gives you more freedom to focus on other business aspects like acquiring experts and providing excellent customer service.
See also: Canada high risk merchant account
Because management software operations based on subscription billing, you’ll need a payment gateway and merchant account to be able to accept credit card payments monthly from your customers.
When a customer inputs their credit card information to pay for our service, the funds will be deposited into your merchant account. From there, it will eventually be transferred to your business bank account.
Owners of companies with a subscription-based business model must work with a merchant account and payment gateway provider that allows for automatic payments each month.
Unfortunately, obtaining a merchant account from your local bank if you have this type of business. They will see you as high-risk because you’ll deal with high sales volumes, possible fraud, and, most of all, chargebacks. Banks don’t want to take the risk with businesses operating on a subscription model.
High-risk businesses have difficulty obtaining merchant accounts from banks and payment processing companies. They will have to meet certain conditions and have few chargebacks, which is virtually impossible for any subscription-based business.
While offering this type of SaaS can be an effective and profitable business, recurring payments can be seen as a negative for banks. For these reasons, your business will likely require a high-risk merchant account.
High Risk Pay offers merchant services for high-risk management software businesses. We believe that just because the banks see you as a risk, it shouldn’t mean that your business can’t be successful with the right tools and people behind you. Getting a merchant account for your SaaS company can be difficult, but working with a reputable merchant account provider can help support your efforts and make your business a success.