If your business accepts payments from users through your website and/or mobile app, you should include specific clauses in your Terms and Conditions agreement that discuss the payment terms.
This is useful to all businesses, whether your business:
- Is a SaaS app that collects payments monthly/yearly (such as an online subscription service that users pay per year for)
- Is a business that collects payments for products/services on a one-time, per-order basis (such as any basic e-commerce store that sells goods/services or just digital products).
Payment terms in your Terms and Conditions agreement can help to protect your business as well as keep your customers informed of your expectations when it comes to payments.
Common information included in these type of clauses are:
- How customers are able to pay (what payment methods are accepted, i.e. credit cards, purchase orders)
- How late or missed payments will be handled
- Return and refund information
- How payment disputes will be handled
Payment Terms for SaaS Apps
If you have a SaaS app that allow customers to purchase subscription plans or pay a regular fee at regular intervals (such as a monthly recurring bill), you’ll want to consider addressing the following in your SaaS Terms and Conditions agreement:
- Reserving your right to suspend a customer’s service or cancel the customer’s account, and what will trigger you to do so
- How renewals will be done (for example, automatically unless canceled, or only with active steps taken for account renewal)
- How often a customer will be billed for the service
- If any refunds are provided for canceled subscriptions/contracts or other circumstances
- Reserving your right to change prices of your service at any time