FreshBooks vs Wave: PCI Compliance for Accounting Software Users

Bottom Line

If you process payments through either FreshBooks or Wave’s native payment features, you’re likely facing SAQ A compliance requirements — the simplest path in PCI. The key difference: FreshBooks users typically maintain lighter compliance obligations due to its payment architecture, while Wave Payments users may face additional validation requirements depending on their integration method.

What’s Being Compared and Why It Matters

FreshBooks and Wave are popular accounting platforms that offer integrated payment processing capabilities. Both allow you to invoice clients and accept credit card payments directly through their platforms, which means both create PCI compliance obligations for your business.

This comparison helps you understand:

Which PCI SAQ type applies when using each platform’s payment features
The scope of your compliance responsibilities with each solution
How your choice of accounting software affects your annual PCI validation requirements

This matters when you’re selecting accounting software for your business, responding to your acquirer’s compliance questionnaire, or trying to minimize your PCI scope while maintaining convenient payment processing.

Comparison Table

Aspect	FreshBooks Payments	Wave Payments
Typical SAQ Type	SAQ A	SAQ A or SAQ A-EP
Compliance Scope	Minimal – redirect model	Minimal to Moderate
Annual Requirements	~22 questions	22-191 questions
Quarterly Scanning	Not required	May be required
Estimated Time	30-60 minutes	0.5-8 hours
Best For	Service businesses, consultants	Small retailers, service providers

Detailed Breakdown

FreshBooks Payments

FreshBooks uses a fully outsourced payment model that keeps your PCI scope minimal. When clients pay invoices online, they’re redirected to FreshBooks’ secure payment page. Your systems never touch cardholder data.

What it covers:

Invoice-based payment acceptance
Recurring billing and subscriptions
Client payment portal
Multiple payment methods (cards, ACH, etc.)

Who it’s for:

Service-based businesses
Consultants and freelancers
B2B companies with recurring clients
Businesses prioritizing minimal compliance burden

Strengths:

True SAQ A eligibility in most cases
No quarterly vulnerability scanning required
Your network stays completely out of scope
Annual validation takes under an hour

Limitations:

No point-of-sale capabilities
Limited customization of payment experience
Transaction fees may be higher than merchant accounts
No card-present payment options

Wave Payments

Wave offers more flexibility in payment acceptance but potentially increases your compliance scope. Depending on how you implement Wave Payments, you might qualify for SAQ A or need to complete SAQ A-EP.

What it covers:

Online invoice payments
In-person payments via Wave card reader
Recurring payments
Payment tracking within Wave accounting

Who it’s for:

Small businesses needing free accounting software
Retailers with occasional card-present needs
Service providers with diverse payment scenarios
Cost-conscious startups

Strengths:

Free accounting platform reduces overall costs
Supports both online and in-person payments
Integrated inventory management
More payment flexibility

Limitations:

May require SAQ A-EP if using certain features
Quarterly ASV scans possibly required
More complex annual validation
Limited to Wave’s payment processing rates

Technical Differences That Matter

The critical difference lies in how cardholder data flows:

FreshBooks: Uses a pure redirect model. Your customers leave your environment entirely to enter payment data on FreshBooks’ servers. This keeps you at SAQ A — the 22-question questionnaire with no technical requirements.

Wave: Offers multiple integration options. If you’re only using Wave’s hosted payment pages, you achieve SAQ A. However, if you’re using Wave’s card readers for in-person transactions or certain API integrations, you might need SAQ A-EP, which includes:

Quarterly ASV vulnerability scans
Network segmentation validation
191 compliance questions
Potential penetration testing requirements

Decision Framework

Choose FreshBooks if:

You only accept online payments
Your clients pay invoices remotely
You want guaranteed SAQ A eligibility
Minimizing compliance overhead is priority one
You don’t need point-of-sale capabilities

Choose Wave if:

You need free accounting software
You accept both online and in-person payments
You’re comfortable with potential SAQ A-EP requirements
You have IT resources for quarterly scans
Payment flexibility outweighs compliance simplicity

Questions to Confirm Your Category:

1. Do you need to accept in-person payments? (Yes → Wave might be necessary)
2. Is your annual revenue under $20K? (Yes → Wave’s free tier more attractive)
3. Do you have IT staff to manage quarterly scans? (No → FreshBooks safer choice)
4. Are all your customers paying online? (Yes → Either works, FreshBooks simpler)

Common Misidentification Scenarios:

Thinking Wave always means SAQ A-EP: If you only use Wave’s hosted checkout, you’re still SAQ A
Assuming FreshBooks handles all compliance: You still must complete annual validation
Believing free software means no compliance: Wave’s free tier doesn’t exempt you from PCI requirements
Confusing payment processor with accounting software: Both are accounting platforms with payment features, not dedicated payment processors

What Happens If You Choose Wrong

Consequences of the Wrong Choice:

Underestimating scope: Completing SAQ A when you need SAQ A-EP leaves you non-compliant and vulnerable to fines
Overestimating scope: Completing SAQ A-EP unnecessarily wastes resources and adds unneeded technical requirements
Failed validation: Your acquirer rejects your compliance documentation, potentially suspending payment processing

How to Course-Correct:

1. Review your actual payment flow — screenshot or diagram exactly how payments work
2. Confirm with your payment processor — they know which SAQ type they expect
3. Complete the correct SAQ — even mid-year if necessary
4. Document your scope — maintain network diagrams and payment flow documentation

When to Get a QSA’s Opinion:

Your annual card volume exceeds $1 million
You’re unsure about your SAQ type after reviewing requirements
Your acquirer questions your self-assessment
You’re adding new payment channels or features

FAQ

Q: Does using FreshBooks or Wave make me automatically PCI compliant?
A: No, using either platform reduces your PCI scope but doesn’t eliminate it. You still must complete the appropriate SAQ annually and maintain compliance with applicable requirements. Even SAQ A has obligations around vendor management, security policies, and annual reviews.

Q: Can I use Wave’s free accounting without their payment processing?
A: Yes, you can use Wave accounting with a different payment processor. However, this might actually increase your PCI scope depending on the processor you choose. Wave Payments is designed to minimize compliance burden when used with their accounting platform.

Q: What if I process payments through both FreshBooks and another method?
A: Your PCI compliance scope covers all payment channels. If you use FreshBooks (SAQ A) but also have a physical terminal (SAQ B), you must comply with the higher-scoped SAQ B requirements. Multiple payment methods don’t multiply requirements — they elevate you to the highest applicable SAQ.

Q: Do I need to run vulnerability scans with FreshBooks?
A: No, FreshBooks’ redirect model qualifies for SAQ A, which doesn’t require quarterly ASV scans. This is one of the major compliance advantages of using FreshBooks Payments. You’re only responsible for the minimal SAQ A requirements around policies and vendor management.

Q: How do I prove PCI compliance to my clients when using Wave?
A: Complete your annual SAQ (A or A-EP depending on implementation) and obtain your Attestation of Compliance (AOC). This certificate proves your compliance status. Some clients may also request to see your completed SAQ or evidence of quarterly scanning if applicable.

Conclusion

The choice between FreshBooks and Wave for PCI compliance comes down to your payment needs versus your compliance capacity. FreshBooks offers the path of least resistance — guaranteed SAQ A eligibility with minimal technical requirements. Wave provides more payment flexibility but potentially increases your compliance obligations to SAQ A-EP level.

For most service-based businesses accepting only online payments, FreshBooks simplifies both accounting and compliance. If you need in-person payment capabilities or can’t justify FreshBooks’ monthly fees, Wave remains viable — just budget time and resources for potentially expanded compliance requirements.

Remember, neither platform eliminates PCI obligations entirely. You’re still responsible for annual validation, maintaining security policies, and protecting any payment data you might handle outside these systems. The question isn’t whether you need PCI compliance — it’s how much effort you’ll invest in achieving it.

Ready to determine your exact SAQ type and streamline your compliance process? PCICompliance.com gives you everything you need to achieve and maintain PCI compliance — our free SAQ Wizard identifies exactly which questionnaire you need based on your actual payment setup, our ASV scanning service handles your quarterly vulnerability scans if required, and our compliance dashboard tracks your progress year-round. Start with the free SAQ Wizard to confirm your requirements or talk to our compliance team about building a sustainable compliance program.