I am working on a software-as-a-service (SaaS) application and I am looking for a billing plugin of some sort that will manage my subscriptions, customers, and recurring billing. There is the RailsKits SaaS kit ($249.00), but I prefer to use open source software. I have also found maccman's saasy, but the phrase "At the moment this is alpha code - use at your own risk" makes me a tad bit nervous.
You could just outsource the whole SaaS side of things.
http://Recurly.com
http://chargify.com
http://spreedly.com
http://cheddargetter.com
http://fusebill.com
http://chargebee.com
There are other providers like SAASY.com, 2Checkout.com who provide a bundled merchant account + payment gateway service along with subscription billing.
Unless your application actually does billing as its CORE FUNCTION, you definitely, definitely, want to get billing OUT of your app!
Get your business to find another solution for that function (or outsource it to e.g. Salesforce.com - most others do). Your development team should be working on the product you sell, not internally reinventing wheels.
I've heard a lot of good things about CheddarGetter for recurring billing. A friend of mine who did web design for a local e-mag said they ended up being the least expensive given the size of his little subscription pool... dunno how big you are but it might be worth checking out. Also, every once in a while I see retweets of them answering questions in my twitter feed... so that's probably a good sign.
EDIT: A quick check shows me it's on rails & open source as well.
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