Hatching Dodo | Ep 2 | What is an MoR?
Hatching Dodo | Ep 2 | What is an MoR?
Description
In the second episode of Hatching Dodo, we address one of the most frequently asked questions during our product demos: What exactly is a merchant of record (MoR)? While the terminology might seem old—it was previously referred to as an importer of record—the concept is more relevant than ever for modern SaaS and digital products businesses. An MoR acts as a legal entity that resells your products to customers in different jurisdictions, simplifying the entire global payments process.
For example, if you are an Indian merchant with customers in the United States, you want those customers to have a seamless experience using their local payment methods. When you use a merchant of record like Dodo Payments, we utilize our established US entity to officially resell your products. This means the actual financial transaction occurs between your customer and our local entity. By doing so, we take on the responsibility for tax collection, compliance, and regulatory adherence in that specific region.
This model allows you to effortlessly collect international and global revenue without the need to set up your own legal entities in every country where you have customers. Dodo Payments provides the global payments infrastructure necessary to scale your business rapidly. We handle the heavy lifting of international tax management and payment gateway complexities, so you can focus on building and improving your product. Understanding the role of an MoR is the first step toward achieving true global reach for your business.
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