Expanding your business internationally is an exciting step. You get access to new markets, a broader customer base, and increased revenue potential. But behind the scenes, the complexity of managing payments, taxes, and compliance can grow quickly. This is where a Merchant of Record (MoR) partner becomes invaluable.
In our last two blogs, we explored what a Merchant of Record is, why it matters, and the risks of managing it yourself. In this blog, we’ll focus on what you need to look for when choosing a MoR partner for your business, whether that’s a marketplace or ecommerce store.
Choosing the right MoR partner is not just a box-ticking exercise. It’s a strategic decision that impacts your operations, customer experience and ability to scale. So, where should you start when deciding who to work with? Below are the factors you should consider before deciding on your Merchant of Record partner.
1. Coverage Where You Need It
The first and most critical factor is whether your Merchant of Record partner operates in the markets you’re targeting.
A great MoR partner should:
- Support the countries, currencies, and payment methods you need now and those you plan to add in the future.
- Have the infrastructure to handle local tax rules, compliance requirements, and payment preferences for each market.
If your MoR partner’s reach doesn’t align with your growth strategy, it is likely not the right one for you. Choosing a MoR that isn’t the right fit can lead to delays, extra costs, missed opportunities and ongoing operational headaches.
2. Strong Compliance and Tax Capabilities
Keeping up with constantly evolving regulations is resource-intensive. Your MoR should:
- Stay ahead of tax law changes, ensuring accurate calculation, collection, and remittance for every transaction.
- Maintain PCI DSS compliance and robust fraud prevention measures.
- Meet data privacy laws (such as GDPR) to protect you and your customers.
Look for a partner with a proven track record in managing compliance, because mistakes in this area are serious and can lead to fines or market access issues.
3. Robust Dispute and Chargeback Management
Disputes and chargebacks are inevitable in online commerce and if not managed properly they can become a drain on time and money.
Your MoR partner should:
- Handle disputes end-to-end, acting on your behalf.
- Have a high success rate in resolving chargebacks.
- Shield your business from direct financial losses in cases of fraud.
Beyond saving you time and money, effective dispute management also safeguards your brand’s reputation.
4. Transparent Pricing
Hidden fees can undermine the benefits of an MoR partnership. Before signing, ensure you understand:
- How transaction fees are calculated in each market.
- Whether there are separate charges for dispute handling, currency conversion or onboarding.
- The full cost of scaling into new regions.
A trustworthy MoR will be clear and predictable about costs so you can plan with confidence. If they don’t disclose when asked, that can raise a red flag.
5. Seamless Onboarding and Ongoing Support
You don’t want to sign with an MoR, only for them to maroon you when you need support.
The right MoR partner will:
- Guide you through setup with minimal disruption.
- Offer responsive, knowledgeable support whenever you need it.
- Understand your business model and tailor their approach to your needs.
A smooth onboarding process not only accelerates market entry but also reduces operational stress.
Why the Right Choice Matters
Your Merchant of Record is more than just a service provider, they’re a partner in your business and growth. Choosing the wrong one can lead to delays, compliance headaches, and unnecessary costs, while the right one drives your success and removes significant operational burdens.
The Trustap Approach
At Trustap, we built our MoR model to make global selling simple, secure, and scalable. We combine:
- Global market coverage to match your growth ambitions.
- Best-in-class compliance to keep you safe and operational.
- End-to-end dispute resolution to protect your revenue and brand.
- Clear, fair pricing with no surprises.
- Dedicated support from people who understand your business.
With Trustap as your MoR, you can focus on building your brand while we handle the complexity of selling worldwide.
To sum it up
Selecting an MoR partner is just as much about finding someone who will protect your business and empower your growth as it is outsourcing payments. Take the time to choose wisely, because the right MoR can be one of your most valuable strategic assets.
Ready to explore how Trustap could be your MoR partner? We’d be happy to talk.
