Rishabh Goel
Co-founder & CEO
Jun 14, 2024
|
5
min
Digital businesses are by default global. Entrepreneurs can launch products from anywhere in the world and sell them to customers - again from anywhere in the world.
The Fintech 2025+ report projects that cross-border payment flows will reach $290 trillion by 2030. However, the current infrastructure for global payments has too much friction.
Global businesses must navigate many intricacies: offering diverse local payment methods, ensuring compliance with complex tax regulations, and maintaining a global payment stack.
A Merchant of Record (MoR) simplifies this process, making international expansion more manageable and secure.
Dodo Payments stands at the forefront, providing an efficient MoR solution customized for businesses dealing with digital goods.
What is a Merchant of Record?
The Merchant of Record (MoR) is the legal entity that is responsible for processing a customer's payment and managing the entire transaction lifecycle. This includes ensuring compliance with financial regulations, handling tax obligations, and managing disputes and chargebacks. The MoR appears on the customer’s credit card or bank statement and takes all associated risks and responsibilities.
How Does an MoR Work?
When the customer makes a purchase, the Merchant of Record (MoR) processes the payment securely, and as far as customers are concerned they will visit only your website to buy their product as usual.
Initially, the payment goes to the Merchant of Record, once the MoR deducts the fees and correct taxes it will pay you the due amount.
One major difference is that, once the customer makes the purchase. It is the Merchant of Record that will appear on the customer’s bank statement, instead of your business name.
So if the customer faces any dispute related to the payment, they must take the issue to the Merchant of Record, as it holds the liability.
How Merchant of Records can simplify your global payments
Handles Tax Compliance: For SaaS companies and small businesses the Merchant of Records (MoR) can handle and collect VAT/GST based on the buyer’s location, preventing legal risks.
Secure Transactions: This payment process uses globally accepted methods just like Stripe while offering fraud protection.
Customer Support: The MoR also resolves disputes, chargebacks, and refunds on behalf of the business.
Benefits of Using Dodo Payments as Your Merchant of Record
To ensure smooth global transactions and complex tax regulations it is crucial to select the right Merchant of Record for your business. Here’s why Dodo Payments stands out as your ideal partner for managing global payments;
1. Comprehensive Tax and Compliance Management
Dodo Payments can handle tax compliance from every aspect, whether it's calculating GST/VAT or remitting taxes to the appropriate authorities.
2. Secure Payment Processing
Dodo Payments as a platform provides secure payment solutions that meet PCI-DSS standards. We protect your business and customers from fraud while ensuring a hassle-free checkout experience.
3. Customer Support Excellence
We offer end-to-end support for payment-related issues, including chargebacks, refunds, and disputes. Our dedicated team ensures your customers have a seamless experience.
4. Scalable Solutions for Small Businesses
Whether you're a solopreneur or running a micro SaaS company, our solutions are designed to scale with your business. We manage global transactions across multiple currencies and regions, enabling you to focus on growth while we handle the complexities.
5. Transparent Pricing
At Dodo Payments, we believe in transparency. Our pricing structure is straightforward, with no hidden fees, so you can plan your finances without surprises.
6. Tailored for Small Businesses and SaaS
We specialize in helping small businesses, SaaS companies, and startups manage their Merchant of Record needs efficiently, ensuring that even with limited resources, you can achieve global reach.
Conclusion
SaaS is inherently global, breaking down geographical barriers and enabling businesses to innovate and grow on a global scale.
By simplifying their global payments, entrepreneurs can start SaaS businesses from anywhere, and customers can access these services from any location, thanks to the power of the internet and AI. With its scalability, cost-effectiveness, and ability to foster collaboration and innovation, SaaS is the default model for software delivery in today’s digital world.
Dodo Payments, with its specialized MoR services, can simplify your global payments by navigating the complexities of international digital commerce.
To learn more about how Dodo Payments can support your global digital goods business, contact us today!
