As the name suggests, being the Merchant of Record is a great way to simplify payments for your business. Being the Merchant of Record means that you are the one who is responsible for processing payments, which means that you have more control over your account. For example, you are responsible for tax payments, PCI compliance, and handling refunds and chargebacks. In addition to having more control, being the Merchant of Record also helps you avoid many administrative headaches.
Being the merchant of record also means that you are free to focus on growing your customer base. If you're an e-commerce company, being the Merchant of Record can be extremely helpful. The global online marketplace is expected to reach $4 trillion by 2021, and the number of US online shoppers is expected to reach 300 million by 2023. As e-commerce continues to grow, consumers' buying habits are changing.
As a Merchant of Record, your funds are protected from fraudulent charges. The processor and the FDIC cover your account in the event of a credit card fraud. You also have access to chargeback help and security compliance. In addition, as the Merchant of Record, your business name will appear on your client's credit card statements, which means you have full control over your brand and reputation.
Being the Merchant of record allows you to focus on your business' day-to-day operations. You can outsource your legal issues, but you can still track down the original seller when necessary. As the Merchant of Record, you'll be responsible for payment processing, tax management, and account maintenance.
As a Merchant of Record, you'll be able to save money on your business's payments and VAT obligations. Since you don't have to worry about handling multiple payment gateways or paying local taxes, you can focus on growth. Additionally, you'll be freed up to focus on your core business, which is product development.
One of the main advantages of being the Merchant of Record is the ability to manage your own cash-flow and booking inventory. Being the Merchant of Record can also make your payments more flexible. If a booking goes awry, you can adjust the payment schedule or reach out to the guest directly. As a Merchant of Record, you can also decide which accounting practices you prefer.
Another major benefit of being the Merchant of record is the ability to expand your customer base. If you are selling to customers in other states, you can also consider being the Merchant of record to avoid any problems with financial compliance and tax calculation. As the Merchant of Record, you'll be aware of the laws and regulations that govern your products or services in these jurisdictions. This can provide you with additional profits and a competitive advantage.
In addition to being the Merchant of record, you'll be able to accept various online payment methods. Moreover, you will be able to save on administrative costs. The financial institutions will handle your payments and cut your processing costs as they manage in bulk. As a result, the costs of using a PSP are reduced.
