How to Securely Store SaaS Customer Credit Card Information
To process credit cards as a SaaS company, you should also keep an eye on the legal aspects related to these practices. This includes complying with the laws of the jurisdictions where the business operates and ensuring that all debt collection activities are within the legal framework.
This section will guide you on the steps to get the required legal support and comply with the legal issues related to debt collection.
Concept snapshot
SaaS Customer Data
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Category: Payment Security and Compliance.
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Used By: B2B SaaS and Startups.
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Primary Purpose: Minimize liability and stay compliant.
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Related Concepts: Tokenization, PCI DSS, Card Updater, Involuntary Churn
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Stage in SaaS Growth: Scaling and Global Expansion.
Choose Your Storage Strategy
Before moving to technical implementation, determine which data handling strategy fits your infrastructure. This decision depends on your internal engineering capacity and how much liability you want to manage. Most founders use a self-assessment approach to find the strategy that balances speed-to-market with security.
The Build vs. Buy Assessment
Consider this. You will need a team that is dedicated solely to managing all encrypted databases and also conducting audits regularly and consistently. Planning should incorporate potential scenarios related to data breaches. Evaluate whether to partner with a third-party processor, potentially transferring risk, or to retain responsibility for managing any negative outcomes.
Last but not least, what about storing card details for future use? This approach might be applicable to subscription models, given that users sometimes prefer quick checkout options.
|
Strategy |
Technical Effort |
Security Risk |
Recommended For |
|
On-Site Storage |
High |
High |
Large enterprises with custom banking integrations. |
|
Tokenization |
Low |
Low |
Startups and scaling SaaS companies. |
|
Third-Party Vaulting |
Medium |
Low |
Companies using multiple payment gateways. |
Building a basic billing system in 2026 can cost between $60,000 and $150,000. For SaaS companies, Merchant of Record is a more efficient choice as it handles the entire liability.
Free SaaS Card Storage Compliance Checklist
Audit your SaaS payment infrastructure for PCI DSS and data security, and learn how to securely store customer credit card information.
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Technical security requirements
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Steps for implementing tokenization
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Internal access control protocols
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Data retention and disposal rules
Define Your PCI DSS Compliance Scope
Identify the specific hardware, software, and employees that interact with credit card data. Reducing the number of systems that “touch” the card data simplifies the audit process and lowers security costs. Following the latest standards, requirements for authentication and vulnerability management have become stricter, making it easier for startups to fail an audit if their scope is too broad.
In 2026, the average cost of a data breach in the U.S. reached an all-time high of $10.22 million.
If you store the full 16-digit Primary Account Number (PAN) on your own servers, you are automatically moved to a higher compliance tier. Check our guide on choosing a payment solution to see how to avoid this.
Free SaaS Card Storage Compliance Checklist
Audit your SaaS payment infrastructure for PCI DSS and data security, and learn how to securely store customer credit card information.
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Technical security requirements
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Steps for implementing tokenization
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Internal access control protocols
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Data retention and disposal rules
Implement Tokenization to Replace Raw Data
Tokenization turns sensitive card numbers into a non-sensitive string of characters called a “token.” This token acts as a placeholder; it allows you to charge the customer without ever having their real credit card number on your database. If a hacker breaches your system, they only find the tokens, which are useless outside of your specific payment environment.
A developer at a small SaaS company integrates an API that returns ‘tok_123456789.’ The developer saves this string in their ‘Users’ table. Upon subscription renewal, the app transmits the token to the processor, and the payment process is generally completed.
We provide a secure environment where card data is tokenized immediately upon entry through our checkouts. This ensures your servers never “see” the sensitive data.
Free SaaS Card Storage Compliance Checklist
Audit your SaaS payment infrastructure for PCI DSS and data security, and learn how to securely store customer credit card information.
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Technical security requirements
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Steps for implementing tokenization
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Internal access control protocols
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Data retention and disposal rules
Use a Card Updater Service
An automated Card Updater is a service that is linked to card networks like Visa and Mastercard that checks for any differences in the details of card holders. When a card expires or is replaced, the bank provides the new card number and expiration date to the service provider. This happens in the background without the customer having to log in and manually update their billing information.
Involuntary churn, often caused by expired cards, accounts for approximately 20% to 40% of total churn for SaaS companies.
Companies using an automated card updater typically see a 5% to 10% increase in renewal rates. You can calculate your own potential savings using our SaaS Churn Rate Calculator.
Free SaaS Card Storage Compliance Checklist
Audit your SaaS payment infrastructure for PCI DSS and data security, and learn how to securely store customer credit card information.
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Technical security requirements
-
Steps for implementing tokenization
-
Internal access control protocols
-
Data retention and disposal rules
Configure Strict Access Controls and MFA
Database breaches have been correlated with employee access privileges beyond defined requirements; assigning unique IDs to billing personnel and enforcing Multi-Factor Authentication (MFA) for logins can help mitigate risk. This aims to limit access to billing records even if an employee’s password is compromised.
Approximately 74% of breaches appear to be related to privileged access administration or cases involving human error, according to the analysis.
MFA is a mandatory requirement for all personnel accessing the cardholder data environment under current compliance laws.
Free SaaS Card Storage Compliance Checklist
Audit your SaaS payment infrastructure for PCI DSS and data security, and learn how to securely store customer credit card information.
-
Technical security requirements
-
Steps for implementing tokenization
-
Internal access control protocols
-
Data retention and disposal rules
Establish Automated Data Disposal Schedules
Develop a policy that dictates exactly how long you keep customer data and how you destroy it. Standards prohibit storing sensitive authentication data, such as the CVV code or PIN, after the transaction is authorized. For the remaining data, set up an automated script that purges tokens and cardholder names for accounts that have been inactive for more than one year.
|
Data Type |
Can You Store It? |
Action |
|
CVV/CVC |
No |
Delete immediately after authorization |
|
Full PAN |
Avoid |
Replace with a token |
|
Expiration Date |
Yes |
Keep while the subscription is active. |
Conclusion
This guide takes a look at the technical aspects related to the management of payment cards through tokenization and encryption. For a SaaS company, an automated card renewal process and compliance with the PCI DSS standard can help in the management of recurring revenue. These measures enable safe processing of information and also reduce the burden of the manual compliance efforts.
FAQ
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They can store some details such name, the PAN (account number) along with the expiration date if they are compliant (PCI DSS). But keep in mind, once the transaction has been authorized they are not allowed to store this information which includes PINs, any CVV or CVS codes, along with any sensitive authentication data.
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Encryption uses a mathematical algorithm to scramble data into an unreadable format that can be decrypted with a key, making it ideal for protecting data while it is in transit. Tokenization replaces the data entirely with a non-sensitive placeholder (a token) that has no mathematical relationship to the original card, effectively removing the sensitive data from your system.
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A manual update requires the customer to log in and re-enter their details after a card expires, which often leads to high churn rates. An automated card updater works behind the scenes with card networks to refresh expired or replaced card details, ensuring that subscription billing continues without any interruption to the user’s service.
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No, standard CRMs are not built with the specialized security architecture required to meet PCI DSS standards. Storing raw card numbers in a CRM exposes your business to extreme risk of data breaches and can result in monthly fines of up to $100,000 for non-compliance.
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If for some reason you move to another payment partner, there is a process called a token migration. This is where your old and new provider work together to transfer that data safely and securely. This will ensure that any of your customers won’t have to re-enter those details.
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