The E-commerce Transaction & Merchant of Record

What is Merchant of Record?

Online shopping can be a seamless experience, but the complex web of processes behind it is what makes it so. One important player in this ecosystem, the merchant of record (MoR), is a behind the scenes entity that manages the financial aspects of sales online.

Functions of Merchant of Record

• Payment Process: MoRs capture payments from customers using various methods such as credit cards, digital wallets, and debit cards. By partnering with payment gateways and processors, they ensure smooth transactions.
• Financial Compliance MoRs help you navigate the constantly changing world of financial regulations. They adhere to the standards set by payment networks like Visa and Mastercard and PCI compliance protocol, protecting sensitive financial data such as credit card numbers.
• Sales tax management: MORs manage the complexity of sales taxes. The MoRs calculate and collect the sales tax accurately based on customer location and product categories, and remit the collected taxes to appropriate authorities. Online businesses no longer have to worry about navigating the complex tax landscape.
• Dispute resolution: The MoRs should be the first point of contact for customers with questions about payments. The MoRs handle refunds and chargebacks for customers, streamlining both the buyer and seller’s process. It ensures that customers have a positive experience, as they can resolve payment issues in a straightforward manner.

Benefits of Using a Merchant of Record

• Simplified Installation: MORs eliminate the requirement for online businesses that they acquire their own merchant account, which can be a lengthy and complex process. It allows companies to launch an online store faster and easier.
• Less administrative burden: By outsourcing payment processing, tax management, and compliance to a MoR(merchant of record), businesses are able to devote more resources to their core operations, such as marketing, product development, or customer service. This allows businesses to free up time and resources.
• Enhanced security: MORs are experts on financial security. They have a robust security infrastructure, and the knowledge to safely handle sensitive financial data. Businesses can rest assured that the data of their customers is secure.

What are the benefits of MoR Services for you?

• New Business: MORs are a simpler and faster entry point for new businesses looking to enter e-commerce. MoRs take care of all the financial details, allowing new businesses to concentrate on growing their customer base and brand.
• International sellers: MoRs are a game changer for businesses that want to expand globally. MoRs help businesses navigate the complex regulations of international sales taxes, allowing them to sell worldwide to their customers without having to worry about compliance issues.
• Subscription Based Businesses: MORs can streamline subscription billing and payment processing. This provides a smooth experience for customers and reduces the chance of them leaving due to unpaid bills.

Conclusion

The MoR is a key component in ensuring the smooth running of ecommerce. It acts as a partner who ensures that transactions are secure, operations are streamlined, and customers have a positive experience. Understanding the role of MoRs allows businesses to make informed decisions regarding their online payment strategies. An MoR is a great tool for any e-commerce seller, whether you are a startup or an experienced seller who wants to expand their reach.