How to Choose Payment Processing for SAAS Platforms

published Apr 20, 2022
1 min read

If you have a SaaS, whether a startup or an established business, you need a payment processing system or payment gateway that enhances your sales.

In-house versus Ready-to-Use

It is possible to create your in-house payment method. This will give you maximum functionality and customization. It will also decrease the processing fees.

The problem with in-house payment methods is that they’re expensive to create and require testing, maintenance, and support.

While slightly less customizable, a ready-to-use solution is easy to set up and cost-effective. The processing fees will be higher, but the expense is usually balanced by the lower installation and maintenance cost.

The Criteria for Choosing a Payment Processing System

Choosing the right payment gateway is looking at what’s offered and what meets your needs.

Transaction Fees

The first simple criterion is to look at transaction fees.

  • Transaction – How much are you charged per transaction?
  • Monthly – What are the monthly fees you’re charged?
  • Setup – Most payment processors charge a setup fee. How much is that?

Once you’ve compared the fees that you’re charged with other offers, you can look at the other criteria.

Warning: The cheapest is not always the wisest. If they’re significantly cheaper than anyone else, they are probably cutting corners someplace, which might hurt you.


Every payment processor should have its security out front.

The cost to you and your company of a payment system that gets compromised could be outrageous. You could be put out of business in a matter of hours.

Make sure they’re compliant with the Payment Card Industry Data Security Standard. The better ones will brag about all the other awards and protections in place.

Multiple Tiers

The payment processor should make it easy to set up multiple subscription tiers. Since tiers are the core of most SaaS platforms, it needs to be easy to set up, change, and maintain.

Be sure to inquire about how they handle different tiers and payment methods.

Flexible Payment

A flexible payment system will grow with your business. If the payment processor isn’t scalable, you might need to change processors just as you make money.

Be sure that the company can scale with your needs.


A payment processing system that’s too difficult to use will kill sales. Every transaction needs to be processed quickly.

Be sure that your payment processor makes check out simple for your customers. Any more than a few seconds might cost you sales.

The Least You Need to Know

Your payment processor should improve your product, making it easier and simpler for your customers. If it doesn’t do that safely, keep looking.

There are a lot of payment processing companies around the world. When it comes down to it, you don’t need one of the big-name companies to get great service. Smaller providers often give better service because they have fewer customers.

Choose wisely. The right processor will not only grow with you but can help your business grow.