> Credit card fraud raises national debt, makes your economy reliant on derivatives such as insurance and in the end you fall down.
That's not how credit cards work. Credit card fraud is never shouldered by the country, only the banks and stores that fall victim to it. There's no insurance involved, it's a cost of accepting credit cards.
> Also SaaS has nothing to do with recurring CC. Don't you use postpaid services in India? Generate an invoice and give someone a week to pay. I mean if it's good enough for other service providers, why not for SaaS? Just use a shorter payment deadline.
A big factor of having a successful SaaS product is reducing friction and making it scale. Invoicing for an inexpensive reoccurring service does not scale and is a pain for both sides of the transaction.
Invoicing does not scale? I bet if you write down a list of world's largest, most scaled out services that charge monthly, most of them would be using invoicing as the main mechanism.
In India, don't you think invoicing scales for BSNL, Airtel, BSES, etc.?
And there is a huge insurance component inc credit cards. Ever see the difference in accepting rates of CC and a debit card? Ever wondered why that is? Every damn transaction you do requires heavy handed underwriting. The underwriting requires insurance. If the underwriter pays later than the bank needs it, the bank needs insurance backbone to fall on. On individual fraud basis, banks themselves come under debt for extensive periods of times while the underwriter sits and decides. The rectification with the customer itself takes months during which the bank is in debt.
The reason you're paying Visa or MasterCard any money is in hope that they underwrite in case there is a fraud or customer can't pay. How else do you define insurance?
> Credit card fraud is never shouldered by the country, only the banks and stores that fall victim to it.
It doesn't become part of the formal national debt tally, but a country full of debtors who can't pay their bills is sure as hell a drag on a country's economy.
That's not how credit cards work. Credit card fraud is never shouldered by the country, only the banks and stores that fall victim to it. There's no insurance involved, it's a cost of accepting credit cards.
> Also SaaS has nothing to do with recurring CC. Don't you use postpaid services in India? Generate an invoice and give someone a week to pay. I mean if it's good enough for other service providers, why not for SaaS? Just use a shorter payment deadline.
A big factor of having a successful SaaS product is reducing friction and making it scale. Invoicing for an inexpensive reoccurring service does not scale and is a pain for both sides of the transaction.