# How does a Merchant of Record cut Health tech Risks > Discover how HealthTech companies use a Merchant of Record to reduce compliance risk, secure payments, and scale internationally with confidence. - **Author**: Joshua D'Costa - **Published**: 2025-02-27 - **Category**: Merchant of Record, Tax & Compliance - **URL**: https://dodopayments.com/blogs/merchant-of-record-healthtech --- The health tech industry is experiencing unprecedented growth, driven by advancements in e-health, wearable devices like Healthify Me in India, AI diagnostics, and digital health platforms. [With revenue expected to hit US$197.88 Billion in 2025 and grow at an annual rate of 6.88% to reach US$258.25 Billion by 2029](https://www.statista.com/outlook/hmo/digital-health/worldwide), the demand for advanced healthcare solutions from remote patient monitoring to AI-powered is growing. Yet, global expansion isn't without its challenges. Health tech companies often struggle with tax regulations and the need for secure payment processing, which can hinder scaling efforts. For those looking to reach new markets without the heavy operational burden, [a Merchant of Record (MoR)](https://dodopayments.com/payments/merchant-of-record) offers, simplified international transactions and ensures compliance at every step. ## Health Tech and Global Expansion Challenges 1. **Legal Complexity** > Most SaaS founders underestimate the cost of tax compliance. It is not just filing returns. It is registration, calculation at checkout, remittance, and audit readiness across every jurisdiction where you have customers. > > \- Ayush Agarwal, Co-founder & CPTO at Dodo Payments Health tech companies must comply with stringent regulations like HIPAA (Health Insurance Portability and Accountability Act) in the U.S., GDPR (General Data Protection Regulation) in the EU, and other regional healthcare laws. Non-compliance with HIPPA can result in a fine from [$100 to $50,000 per violation](https://secureframe.com/hub/hipaa/violations), with an annual maximum of $1.5 million for identical violations. These regulations govern how patient data is collected, stored, and shared, adding layers of complexity to global operations. 2. **Payment Processing Challenges** Health tech companies often deal with sensitive patient data and financial information, requiring secure and compliant payment processing. Additionally, global expansion introduces challenges like: - Managing multiple payment methods (credit cards, digital wallets, etc.). - Handling currency conversions and cross-border transactions. - Complying with regional tax laws and reporting requirements. 3. **Operational Overhead** Building in-house teams to manage compliance, taxes, and payments can be costly and time-consuming. For small and mid-sized health tech companies, this operational burden can divert resources from core activities like product development and innovation. 4. **Fraud and Security Risks** The healthcare industry is a prime target for cyberattacks, with 45% of healthcare organizations experiencing ransomware attacks in 2022. Ensuring secure payment processing and protecting sensitive data is critical to maintaining patient trust and avoiding costly breaches. 5. **Customer Experience** Providing a seamless payment experience is essential for improving efficiency, reducing administrative workload, and ensuring that patients receive timely care. There are several effective software solutions for managing billing, such as [Theralytics](https://www.theralytics.net/), specializing in simplifying invoicing and payment processes for ABA providers. These solutions ensure accurate billing, automate payment tracking, and provide detailed financial reporting, allowing providers to focus on delivering high-quality care without the burden of managing complex billing tasks However, global expansion often leads to payment friction, such as declined transactions or lack of preferred payment methods, which can deter users. ## How an MoR Helps Health Tech Companies Scale Globally A Merchant of Record (MoR) is a service provider that acts as the legal entity responsible for processing payments, managing taxes, and ensuring compliance with local regulations. For health tech companies, an MoR can be a game-changer in overcoming global expansion challenges. 1. **Simplifies Tax and Compliance** An MoR ensures compliance with healthcare-specific regulations like HIPAA and GDPR, as well as regional tax laws. This reduces the risk of legal issues and allows health tech companies to focus on innovation. 2. **Streamlines Payment Processing** An MoR supports multiple payment methods and currencies, enabling health tech companies to accept payments from customers worldwide. It also provides secure, PCI DSS-compliant payment processing to protect sensitive data. 3. **Reduces Operational Burden** By handling end-to-end payment and compliance tasks, an MoR eliminates the need for in-house teams, reducing operational costs and freeing up resources for core business activities. 4. **Enhances Security and Fraud Prevention** An MoR implements advanced fraud detection and prevention measures, safeguarding transactions and protecting against data breaches. 5. **Improves Customer Experience** An MoR ensures seamless, localized payment experiences for users worldwide, reducing payment friction and improving customer satisfaction. ## Features to Look for in a Merchant of Record for Health Tech When choosing an MoR, health tech companies should look for the following features: 1. **Global Tax and Payment Support** - Handles tax calculations, filings, and payment processing for multiple countries. - Ensures compliance with regional tax laws and healthcare regulations. 2. **Secure Payment Operations** - Provides **PCI DSS** compliance and advanced fraud detection. - Protects sensitive patient and financial data. 3. **Localized Payment Options** - Offers region-specific payment methods tailored to local consumer preferences. - Boosts conversion rates by providing familiar, trusted payment options for patients and customers in each market 4. **Subscription Management** - Supports recurring billing for SaaS-based health tech solutions. - Manages subscriptions, upgrades, and downgrades seamlessly. 5. **Scalability** - Adapts to the growing needs of health tech companies as they expand globally. - Supports increasing transaction volumes and new market entries. ## Why Dodo Payments is the Best Option for Health Tech Here's why Dodo Payments is the right choice for your HealthTech Business; - It offers robust [global tax and payment support](https://dodopayments.com/payments/local-payment-methods) by managing tax calculations, filings, and international payment processing to ensure full compliance with regional tax laws and healthcare regulations. - It ensures secure transactions through [PCI DSS compliance](https://dodopayments.com/payments/merchant-of-record) and advanced fraud detection, protecting sensitive patient and financial data. - Provides [30+ localized payment](https://dodopayments.com/payments/local-payment-methods) options tailored to regional consumer preferences, helping to boost conversion rates by using familiar, trusted payment methods. - Efficiently handles subscription management, supporting recurring billing and seamless management of upgrades or downgrades for SaaS-based health tech solutions. ## Final Thoughts The health tech industry is destined for massive growth, but global expansion comes with significant challenges. From navigating complex regulations to ensuring secure payment processing, health tech companies need a reliable partner to help them scale efficiently. [A Merchant of Record (MoR)](https://dodopayments.com/payments/merchant-of-record) simplifies tax and compliance, streamlines payment processing, and enhances security. This allows health tech companies to focus on what they do best: Improving patient outcomes through innovation. If you're a health tech company looking to scale globally, consider partnering with a Merchant of Record like [Dodo Payments](https://dodopayments.com/) and achieve sustainable growth. ## FAQ ### Why is a Merchant of Record important for HealthTech expansion? HealthTech companies face strict payment, tax, and compliance obligations across regions, which can slow growth. An MoR centralizes these requirements so teams can focus on patient and product outcomes. ### Can an MoR support HealthTech subscription billing models? Yes, most MoR platforms support recurring billing, plan changes, and subscription lifecycle events for SaaS-style health products. This helps maintain compliant billing operations as usage scales. ### How does an MoR improve payment security for HealthTech? An MoR usually provides PCI-compliant payment infrastructure, fraud detection systems, and dispute operations. That reduces exposure to common payment risks while improving transaction reliability. ### Does a Merchant of Record replace HIPAA and GDPR responsibilities? It helps with transaction-side compliance and reduces operational burden, but your company still owns product-level data handling obligations. You should treat an MoR as a compliance partner, not a complete legal substitute. ## Final Thoughts The health tech industry is destined for massive growth, but global expansion comes with significant challenges. From navigating complex regulations to ensuring secure payment processing, health tech companies need a reliable partner to help them scale efficiently. [A Merchant of Record (MoR)](https://dodopayments.com/payments/merchant-of-record) simplifies tax and compliance, streamlines payment processing, and enhances security. This allows health tech companies to focus on what they do best: Improving patient outcomes through innovation. If you're a health tech company looking to scale globally, consider partnering with a Merchant of Record like [Dodo Payments](https://dodopayments.com/) and achieve sustainable growth.