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Andy Brice
Successful Software

Doug Nebeker ("Doug")

Jonathan Matthews
Creator of DeepTrawl, CloudTrawl, and LeapDoc

Nicholas Hebb
BreezeTree Software

Bob Walsh
host, Startup Success Podcast author of The Web Startup Success Guide and Micro-ISV: From Vision To Reality

Patrick McKenzie
Bingo Card Creator

Payment processor for SaaS


What are my options if instead of selling a software product to be download I sell software as a service?

In my case, after paying for the service, the user has access to a web application hosted in my site. This means that I need to be immediately notified about the purchase and automatically process this notification to enable the user access to the web application (updating the info in my DB).

What processors can offer this kind of integration ? My public site is made with Drupal and I want the payment processor to manage the taxes. Recurrent payments would be a plus but I can live without. So far the Ubertcart Drupal package using 2checkout as back-end processor seems the better option. Any experience with this?

Btw, the fact that 2checkout is a reseller has any negative implications; does this mean that then, legally speaking, I'll just  have one client.

(not interested in discussing the fees, I'd just like to get some pointers, thanks!)
Jordi Cabot Send private email
Tuesday, September 08, 2009
I just got an email from FastSpring saying that "We can do an http POST of order data to a URL on your site immediately. "

If I can send them the client id (only registered users in the portal can buy a service) and get that same id on their http POST then I'd be able to use FastSpring as well.
Jordi Cabot Send private email
Tuesday, September 08, 2009
Paypal IPN
Hanzo Send private email
Tuesday, September 08, 2009
I use Fastspring. Great service and they'll help you set it up.
Richard (Tudumo) Send private email
Tuesday, September 08, 2009
Sorry for keep answering myself but I hope the information is useful to others.

Another mail from FastSpring confirms that I can send my internal id of the user when starting the purchase process and then FastSpring will send me a HTTP POST request including the same ID when the purchase is confirmed.
Jordi Cabot Send private email
Tuesday, September 08, 2009
I setup a merchant account and gateway with recurring transaction capabilities.

I have used 2Checkout for another service for a long time, but I have a couple major frustrations.

1) When a credit card doesn't charge correctly, I get an email, but it's a customer number and not a name with an email address.  This is frustrating because I just want to know who it is so I can email them to update their account.

2) There isn't a built in way to have a reminder sent out to annual subscription clients that they are going to be charged in 30 days by 2CO FOR my product.  I still get charge-backs and people confused as to what the $200 charge from 2co is.

With my merchant account, their statement says my service name, my fees are about half that of 2co, and the emails that go out from that service only mention my company.
Ben Mc Send private email
Tuesday, September 08, 2009
Subscriptions are a major pain. Non trivial code + major legal liabilities + high hassle factor + potential of being a lousy experience for your customers = somebody else do it for a reasonable price.

http://zuora.com/ does a very good job of this I'm told; but most startups/microISVs don't have the volume to make it affordable.

I've heard very good things re fastspring.

I too use 2Checkout.com - and Ben, I feel your pain! Too much to want more of it.

I'm implementing http://spreedly.com for my web app; took about 5 hours to implement (I had help from a very experienced Rails developer who had done it before; your mileage may vary).

We're not processing real transactions yet, which is nice because it will take about 10 minutes to switch from test to real payment processors.

Right now, I'd recommend them highly. Later this month I hope to have some, ahem, real data on how they're performing.

We interviewed Nathanial Talbott, founder of Spreedly: http://startuppodcast.wordpress.com/2009/08/24/show-34-nathaniel-talbott-of-spreedly/  -- I like to know who I'm dealing with when it comes to credit cards! :)
Bob Walsh Send private email
Tuesday, September 08, 2009
Does FastSpring support recurring payments? I don't think so.
Anonymoose Send private email
Tuesday, September 08, 2009
They still don't (fastspring)
iMonad Software Send private email
Wednesday, September 09, 2009
I use PayPal IPN to do this on my web application. Every time I receive a payment (a one-off payment or a subscription payment), PayPal sends me an HTTP notification (which contains the ID of the customer but could be anything else I want) which allows me to give access instantly to my web app to the customer.
Never had any problem with this.
Anthonyb Send private email
Wednesday, September 09, 2009
If you need subscriptions you may want to look into spreeldy.com.

They integrate with a payment provider and take the burden to manage recurring payments from you.

I'm actually kind of in the same process of looking into payment providers for another idea I had. May post about it later...
Torsten Uhlmann Send private email
Wednesday, September 09, 2009

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