Accepting International Payments Without Company Registration
A guide on how to accept international payments without the need for a legal entity. This document explains the concept of a Merchant of Record (MoR), outlines its advantages and disadvantages, and pr
Accepting International Payments Without Company Registration
When you're just starting out, you might want to avoid the legal hassle of company registration. In this case, you can still accept payments by using a payment gateway that acts as a merchant of record.
What is a Merchant of Record (MoR)?
A Merchant of Record is a legal entity that sells goods or services to end customers, handling transactions on behalf of the actual seller. The MoR takes responsibility for payment processing, tax compliance, and legal obligations.
Advantages:
Handles international tax compliance and regulations
Manages payment processing and refunds
Takes on legal liability for transactions
Simplifies cross-border selling
Disadvantages:
Higher transaction fees compared to direct payment processing
Less control over the customer relationship
Potential delays in receiving payouts
Limited customization of checkout experience
Chance of getting banned for terms violation
Available Payment Solutions
Lemon Squeezy
A modern alternative to traditional payment processors, designed specifically for digital products and software.
Polar
An open-source, modern merchant of record payment provider designed for digital products and SaaS.
Paddle
A complete commerce platform that acts as MoR. Paddle handles payments, taxes, and compliance globally.
Dodo Payments
An Indian payment platform specializing in cross-border transactions, particularly suited for digital products and services.
Creem
A low-fee merchant of record service specifically tailored for indie hackers and SaaS businesses.
Gumroad
A simple platform focused on creators and digital product sellers, offering built-in payment processing and audience-building tools.
xPay
A YC-backed commerce solution for SaaS companies that handles global payments, billing operations, tax compliance, and FIRC certificates.
Note: Conduct thorough research before selecting a platform. Choose one that offers data export capabilities in case you need to migrate.
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