For SaaS resellers
SaaS resellers and agencies: billing clients, paying vendors, keeping the spread
SaaS resellers and agency-billing platforms occupy a subtle corner of Connect: they invoice end customers, remit to vendors, and keep a spread — application fee per cycle, effectively margin-on-margin. Subscription mechanics mean every failure mode recurs monthly whether or not anyone remembers why. Churn credits flow back as refunds against transferred vendor payouts; annual-plan cancellations strand twelve-times transfers; and proration questions multiply the surface area honestly noted below.
Margin-on-cycle compounds small errors
900 client accounts at $290 monthly with 25% platform margin transacts $261k monthly through Connect rails. A one-percent leak rate across refund-adjacent flows sounds negligible until recurrence multiplies it twelve-fold annually. Resellers live or die on spread integrity — which is exactly what silent leakage attacks.
Churn credits: the recurring refund engine
Mid-cycle cancellations generate pro-rated credits; implemented as refunds against already-transferred vendor shares, each carries reversal obligations vendors never see coming. Annual plans concentrate the damage: single cancellation, twelve cycles’ transfers stranded at once. Credit-versus-refund implementation choice matters enormously — account credits dodge Connect math entirely while creating their own reconciliation shadow.
Vendor exits deauthorise mid-flow
Vendors leaving the platform disconnect Stripe during transitions — sometimes mid-recovery. account.application.deauthorized freezes automated action instantly; final-settlement processes must anticipate frozen accounts and preserve findings through the offboarding sequence rather than discovering them after credentials vanish.
- Client billing volume
- $261,000
- Monthly churn w/ refunds (3.5%)
- ~31 accounts
- Vendor-side at risk
- ~$5.8k
- Typical stranding band
- $120–470/mo
Scope honesty, then the fix
Proration arithmetic itself sits outside shipped detectors — stated plainly, because subscription platforms deserve accurate scoping before buying anything. What detectors do cover: the refund side of every cancellation, the fee positions attached to dead revenue, and the transfer hygiene beneath all of it.
What FeeGuard does about it
Per-cycle attribution maps findings to client accounts, vendors and billing periods; annual-plan cancellations surface as the large single findings they are; and monitoring keeps the monthly recurrence honest without anyone maintaining spreadsheets about it.
Common questions
Do account credits count as refunds?
Only when issued via the refunds API. Credits applied to future invoices bypass Connect math entirely — legitimate choice, separate reconciliation burden.
Worst case plan type?
Annual: one cancellation strands up to twelve cycles of transfers. Flag discipline matters most exactly there.