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The customer enters their payment information, and the MOR processes the payment on behalf of the company.

Posted: Sat Dec 07, 2024 4:04 am
by mottalib2026
4. Startups and small businesses
It is a common misconception that businesses operating in a single market with simple payment structures, a low transaction volume, and no immediate global growth plans are not a good fit for Merchants of Record. However, we emphatically disagree. Merchants of Record offer a simplified way of handling payments, which includes everything from ensuring compliance to lowering fraud and chargebacks. This helps small businesses focus more on their products instead of worrying about solving payment and shopper-related challenges.

Additionally, with MoRs, SaaS and software startups can offer multiple payment methods and access innovative built-in tools. These matter greatly in both domestic and international transactions.

All startups want to grow, and MoRs offer the infrastructure facilitating expansion. There is no sweeter spot to integrate with an MoR than in your start-up phase, as later on in the process you won’t have to deal with complicated migrations or high churn rates. Being compliant and payment-ready to sell anywhere worldwide from the moment you start doing business will allow you to enter a different growth stage faster.

5. High-risk businesses
This is a controversial topic because high-risk businesses get labeled as such due to many factors, which include the number of chargebacks and refunds. It is true that there are high-risk niches, but because of the manner in which orders are processed, even SaaS businesses could easily be perceived as high-risk. In other words, in most cases, it’s the eCommerce partner’s fault that these businesses are placed in this category unless you have a natively, highly prone to fraud product.

In reality, a Merchant of Record, having increased risk and compliance management capabilities, can help businesses in this category significantly improve their chargeback rate and reputation and, ultimately, boost revenue and continue to thrive.

Who Shouldn’t be Using MoR Solutions?
Non-Compliant Businesses
Because Merchants of Records resell your products to shoppers worldwide, taking full liability for all transactions, they find it difficult to collaborate with businesses that market non-compliant products. When working with non-compliant products, MoRs could expose themselves to legal, reputational, or financial risk.
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For this reason, most Merchants of Record will analyze each potential partnership and consider the associated risks before moving forward and processing payments, performing their own through KYC process. Additionally, some MoRs may impose stricter regulations and higher fees to navigate the connected risks when collaborating with businesses of this type to mitigate their own financial liability.

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How to Choose the Right Merchant of Record for Your Business?
We sometimes wrongfully think of payments as the plumbing to a successful business, but payments are more than that. With the software market revenue projected to reach $813.4 billion by 2028, global sales are the plumbing, wiring, and pillars of your SaaS home. They are the mission-critical elements that can either fast-track or slow down your global growth.

Working with a Merchant of Record is a highly strategic business decision. The problem is that not all solutions of this kind are created equal. So, to be able to really reap the benefits of an MoR partnership, we’ve put together a list of things to consider when choosing the right partner for your business. Considering the following points will help you find a scalable and flexible partner ready to assist you in successfully expanding into new markets.

A Wide Variety of Payment Channels & Currencies
A strong Merchant of Record solution should be able to offer you multiple currencies and preferred payment methods like:

Credit Cards

PayPal

Alternative payment methods

Local wallets

Offline payment methods (wire, POs, checks, etc)



The customer is king, so it's highly relevant to be able to cater to their payment wishes. The more you can do through a wide portfolio of payment channels and currencies, the higher your online sales volume will be.

However, while generally speaking, more is better, there is a tipping point you need to be mindful of. The golden rule is to ensure you obtain all relevant local methods worldwide from your MoR to accept payments.

Global Reach
This business model offers the huge benefit of selling your products worldwide. Your MoR partner will bring the global infrastructure you need to the table, facilitating and sustaining your company's growth.

Giving SaaS and software developers access to such an elaborate infrastructure, you can enter new and emerging markets with the speed of light.

All local compliance and tax complications are also adequately handled, thus eliminating any hurdles that might slow your business down. Additionally, testing new markets and understanding whether or not your product might be a good fit before is significantly streamlined.

Localized Payment Processing
Localized processing is a highly desired method in increasing payment authorizations because it ensures the highest amount of revenue generated by your traffic, being thus able to actually complete the orders placed by your customers regardless of their country through local payment methods, currencies, processing, and front-end language.

When transactions are processed locally, the risk of errors or delays caused by either currency conversions or international regulations is significantly reduced. This will also boost customer satisfaction and minimize the number of disputes to deal with after the purchase.

Specific data protection laws and regulations must be respected when processing transactions locally. Proving that you can do so will increase security and compliance.

PCI-DSS Level One Partner
Digital payments continue to be a target for cyberattacks, with fraudsters becoming increasingly creative in their attempts. Making sure your Merchant of Record partner follows the industry's most stringent security and compliance standards is more important now than ever.

PCI-DSS Level 1 is the highest level of payment security and compliance standards merchants must comply with to ensure secure transaction processing, credit card data storage, and transmission through key features like encryption, tokenization, and fraud management tools.

Having a PCI DSS Level 1 certified partner, like PayPro Global, can greatly benefit your businesses, enabling you to enhance your payment security, considerably reducing the number of cyber threats and gaining your customers' trust, ultimately leading to larger sales volumes and protecting your reputation.

Simple Pricing Scheme
When choosing the right Merchant of Record for your business, it is important to consider pricing since this factor can significantly affect your company's profitability and sustainability.

Consider comparing pricing from multiple perspectives and not just the cost. Some MoRs have complex fee structures that could end up eating into profits, making it very difficult to manage your cash flow. For instance, PayPro Global practices commission-based pricing on your successful transactions. This means that you are not required to pay for lost sales.

Additionally, be mindful of hidden expenses. For example, since customization demands are often required, some providers charge them separately once the integration process has been completed.

They might charge you for extra premium functionalities, turkey whatsapp number data and choosing not to have them could directly impact your revenue. As you can imagine, this can directly impact your bottom line. So, focus on identifying a provider that practices fair pricing with a simple fee structure.

Fast and Seamless Integration
As mentioned before, the MoR integration process can be very complicated. Combining a complex system with a complete lack of onboarding support, you can find yourself in the middle of a technical disaster. To avoid this situation and the frustrations and stress that come with them, be mindful of this factor when comparing options.

Choose to partner with Merchants of Record that have invested time and resources into streamlining the onboarding process, have a team dedicated to assisting new customers throughout the integration process and customizations, and can provide clients with helpful resources and guides they might find helpful.

Vendor support is also an important part of creating a good experience because it ensures that any errors or issues you might encounter both during and after the onboarding process are promptly handled. Dedicated multi-channel (Slack, Skype, WeChat, etc.) vendor support also helps you maintain smooth operations and rewarding customer experiences.