{"id":46028,"date":"2022-01-07T08:20:02","date_gmt":"2022-01-07T07:20:02","guid":{"rendered":"https:\/\/www.techbarcelona.com\/posting\/what-is-a-merchant-of-record-and-why-is-it-so-important-for-a-cross-border-ecommerce-strategy\/"},"modified":"2022-01-07T08:20:02","modified_gmt":"2022-01-07T07:20:02","slug":"what-is-a-merchant-of-record-and-why-is-it-so-important-for-a-cross-border-ecommerce-strategy","status":"publish","type":"posting","link":"https:\/\/www.techbarcelona.com\/en\/posting\/what-is-a-merchant-of-record-and-why-is-it-so-important-for-a-cross-border-ecommerce-strategy\/","title":{"rendered":"What is a Merchant of Record and why is it so important for a cross-border eCommerce strategy?"},"content":{"rendered":"

To stay competitive in today’s market, you need to\u00a0sell online<\/strong>. Of course, it’s not enough just to have a shop window with our products, it’s essential to allow users to make\u00a0secure online payments<\/strong>, and to be able to manage all the most popular methods that our customers are familiar with.<\/p>\n

This means not only having the right\u00a0technological know-how,<\/strong>\u00a0but also being familiar with\u00a0payments, invoicing<\/strong>\u00a0and\u00a0taxes<\/strong>, which can differ from country to country. This can be particularly complicated, which is why more and more companies are turning to\u00a0Merchants of Record<\/strong>, a new figure that is becoming increasingly popular in international\u00a0eCommerce<\/strong>.<\/p>\n

What is a Merchant of Record?<\/h2>\n

A Merchant of Record (MoR) is an online sales legal entity, authorised by a financial institution to process online credit and debit card payments.<\/p>\n

It is an intermediary between the seller and the end customer and acts as an eCommerce legal entity. The name of the MoR is what will appear on the user’s credit or debit card statement, next to the expense item.<\/p>\n

The MoR is also responsible for collecting taxes on online transactions, handling refunds and transaction cancellations, or chargebacks. Your MoR will also handle relations with financial service providers, for example, to enable installment payments.<\/p>\n

As an eCommerce legal entity, it is also responsible for ensuring compliance with the PCI-DSS, which means that it must always remain up to date on all laws in the countries where transactions take place.<\/p>\n

Difficulties in selling online abroad<\/h2>\n

To sell online across borders you need to know the laws and rules of all the countries you want to export to. This applies not only to ensuring that the goods reach the end customer on time and in the agreed manner, but also to taxes and payment processing.<\/p>\n

MoR exist to simplify operations related to the financial side, relieving the seller of the burden of processing payments, with the absolute certainty of always operating in accordance with the regulations in force.<\/p>\n

This allows the company to save resources and time that can be used in other areas, such as the development of their business and the enlargement of their customer base. A Merchant of Record can be a strategic partner that helps the business grow because, even with a higher volume of sales and more customers to deal with, it will continue to provide the same standards of service.<\/p>\n

Finally, the economic aspect should not be underestimated: a MoR is not only safer and more efficient, it is also a tool that saves money compared with relying on traditional accountants and the management of several local offices located in the various countries of interest.<\/p>\n

Key differences between a Merchant of Record, a Seller of Record and a payment service provider<\/h2>\n

A MoR is distinct from a\u00a0Seller of Record<\/strong>. Although they both handle\u00a0payments<\/strong>, all financial elements and\u00a0taxes<\/strong>, the main difference is that the\u00a0MoR<\/strong>\u00a0is responsible for all legal land claims from your customers. Another aspect that differentiates the MoR and the Vendor is that the former buys the goods from the company and then resells them to the customer \u2013 acting as a de facto reseller \u2013 while the latter only manages the economic and financial part.<\/p>\n

In turn, the MoR and the\u00a0Seller of Record<\/strong>\u00a0are different from the\u00a0Payment Service Provider<\/strong>. First of all, the latter is not considered as a\u00a0legal entity for online sales<\/strong>. This means that it is the company that is legally responsible for handling\u00a0taxes<\/strong>,\u00a0payments<\/strong>\u00a0and any refunds or cancellations of transactions.<\/p>\n

Payment Service Providers<\/strong>\u00a0validate transactions ensuring that funds are available to complete the purchase and act as the connection point between the business and access to funds.<\/p>\n

Does Go Global Ecommerce constitute a Merchant of Record?<\/h2>\n

Go Global Ecommerce<\/strong>\u00a0handles all financial and tax-related matters in all the countries in which it operates. It also handles relations with its customers’ partners and suppliers, including shipping and delivery to the end customer.<\/p>\n

It acts as a partner to its customers, saving them time and resources and allowing them to run their business more efficiently, and it constitutes a\u00a0legal entity for online sales<\/strong>, responding to all legal requests made by end customers.<\/p>\n

In light of all these considerations, we can definitely say that\u00a0Go Global Ecommerce is an efficient example of a<\/strong>\u00a0MoR<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

To stay competitive in today’s market, you need to\u00a0sell online. Of course, it’s not enough just to have a shop window with our products, it’s essential to allow users to make\u00a0secure online payments, and to be able to manage all the most popular methods that our customers are familiar with. […]<\/p>\n","protected":false},"template":"","class_list":["post-46028","posting","type-posting","status-publish","hentry"],"acf":[],"yoast_head":"\nWhat is a Merchant of Record and why is it so important for a cross-border eCommerce strategy? - Tech Barcelona<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.techbarcelona.com\/en\/posting\/what-is-a-merchant-of-record-and-why-is-it-so-important-for-a-cross-border-ecommerce-strategy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is a Merchant of Record and why is it so important for a cross-border eCommerce strategy? - Tech Barcelona\" \/>\n<meta property=\"og:description\" content=\"To stay competitive in today’s market, you need to\u00a0sell online. 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