[ddemchuk]

Guys, net 60 payment on other people's money is absolutely absurd, beta or not. It's obvious you're attempting to bootstrap by using the cashflow of your clients payment processing to grow, but that's not ok in this niche. Raise capital or self fund and do Net 7 max.

[patio11]

I'm kind of torn here. On the one hand, as an SaaS developer, I want to get paid my money immediately if not sooner.

On the other hand, as a jaded shareware developer, I can tell you that Net 60 is a heck of a lot closer than Net 7 to the terms you will be offered by most outsourced payment processors. The DigitalRiver family of companies, which have a commanding presence in shareware payments, will get you your money on average about 45 days after the sale takes place. FastSpring, which is the most developer friendly processor I'm aware of, will average about 20 days from sale. (Other alternatives I'm intimately familiar with: Google Checkout will have the money in your bank account about 3 to 5 days from sale. Paypal can ACH to you within about 2 to 3 business days or, if you're using it for expenses, the time-to-spendibility is essentially zero since you can get a Paypal-branded debit card.)

Business reasons for not doing net 7: returns, chargebacks, and various other forms of abuse. (Not even necessarily abuse by the developer. Here's a fun fraud scenario: fraudster signs up for an affiliate account of your developer, buys their software 100 times with stolen cards, earning a few thousand bucks of affiliate payout which is essentially laundered away from the stolen cards. Six weeks later the first chargebacks start rolling in as people receive their bank statements and wonder why they're getting scammed by a payment processor they've never heard of. This is ridiculously common -- search for any of the big brands in processing and you'll find complaint threads of folks convinced that the processor or merchant is the fraudster trying to steal their money.)

[gpl1]

Yep, that's exactly why we've gone with Net 60 during the beta. We will definitely consider lowering it in the future. Thanks Patrick!

[gpl1]

Hi, the net 60 is just during the beta period and really there to combat fraud. I assure you it is not to help "bootstrap." We intend to lower it later to 30 days.

Edit: if you email us at [e-mail] we would consider lowering that number from 60 for approved/verified merchants.

[linked]

I see two problems with this strategy: a) New developers still see "60 days" and say "Fuck you!", you should emphasize the shortest available payment schedules on your site (make the "anti-fraud" period seem more like a short hurdle to get over) b) 30 days is still too long for verified publishers; while it's a reasonable "new account" rate (for after your beta period), if I'm verified and doing volume on your service, I expect Net-7 or daily.

But what do I know, I'm just a developer who's looking for a recurring billing platform for my indy service.

[gpl1]

You raise some excellent points. I guess all I can say is this is just the messaging during the beta period for our initial users. We will definitely change/fix this messaging before launch though to address the issues you've raised. Once we verify/approve a merchant, we could definitely lower the time.

Edited.

[jtheory]

The comments on this page (parent included, but not the only example) are amazingly snarky and I can't imagine the obscenity is necessary.

Negative feedback is perfectly valid and valuable. Sarcasm doesn't serve any purpose beyond making the poster feel superior (and the recipient feel stupid, or at the very least irritated).

[suking]

Hold a 60 day rolling reserve (10%?) instead.

[shazow]

I agree this abnormally high but this isn't an issue to me personally.

In practice, I'm using Paypal right now and I haven't withdrawn in at least two months. I suppose I should, mostly because I worry about random account freezing that Paypal tends to do. With a service that doesn't have that reputation, holding for 2 months isn't a deal breaker for me.

[pbreit]

Downvote. I doubt they are using the funds for operating costs. Most likely to combat fraud.