

Ask HN: What's the most convenient payment method for enterprise customers? - neya

Almost every startup these days have an enterprise&#x2F;corporate plan on their sign up pages. I wonder if these corporates would really find the &quot;pay by credit card each month&quot; appealing. Or do they prefer paper Cheques?Would love to hear from someone with experience in this regard.
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kellros
The primary reason why a lot of SaaS businesses charge a monthly premium
instead of an annual premium is due to purchasing policies at corporates -
which usually dictate that purchases over x amount (x=$500/$1000+) require
multiple sign-off and follow long-winded acquisition processes that tend to
take forever. By charging less than the threshold or by charging a large
amount that would normally exceed the threshold over time; it's a lot easier
to get such purchase orders signed off. Credit card is the preferred method
for smallish amounts (< $2000).

Without generalizing too much - corporates are generally price insensitive -
they would rather pay a preferred supplier more than risk their business on a
cheaper alternative (without great motivation).

It's in your best interest to dictate the terms that are the least risky for
you - they won't choose another supplier because he offers payment via cheque
and you don't. If they do, I'm not sure that you do want them as a client
considering the hassle you would potentially have to go through to get your
money (good luck if the corporate is in another country!).

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neya
Thank you, that was along the lines of what I wanted to know, extremely
helpful :)

