International Recurring payments (How We Manage It For You) -

In managing international recurring payment, there are three overarching factors to be considered:

1. Staying current on local tax laws as well as transaction regulations
2. It is now simple for consumers to complete the first purchase as well as sign up for recurring payment
3. Ensuring each subsequent payment goes through

Although this might sound easy however, there's an array of variables to take into consideration to achieve those three goals such as:

• Conversion rates for currencies
• Preferred payment types
• Payment processing
• Collection of taxes and remittance for each country, state, territory, etc.
• Payment failure handling
• Fraud prevention
• Subscription management
• Translations of the site
• Chargebacks
• Process of Dunning
• And there's and much more.

The majority of recurring payment companies can only aid you in certain categories and leave the rest for you to determine. For example, certain payment service providers can aid you with processing transactions in foreign currencies, however they won't assist you with paying taxes for those nations.

In this article, we cover what it takes to be an Merchant of Record and how :

•   Collects and pays sales taxes (including VAT, GST, etc.) to you
•   is in compliance with local legislation and rules
•   Lowers the chance of churn through proactive payment retries and customer notifications
•   Makes it really easy for consumers to purchase
•   manages your recurring payment for you
•   Offers all the features at a single price

What Does it Mean to Have as your Merchant of Record

The Merchant of Record (MoR) is a business which sells products or services to the purchaser. The MoR is accountable for each aspect of a transaction including collecting and processing information about payment including security, taxes as well as compliance issues, chargebacks, audits, and so on. If anything goes wrong or is done incorrectly, the MoR is able to solve the problem on behalf of you.

Businesses can be their personal MoR and take care of all these tasks internally. Or, they could contract the entire process out to us, and we take on full liability for each transaction. If you are acting as your MoR, you control the service or product, shopping experience, as well as the branding -- we handle everything else, such as taxes, legal compliance, credit card network approval rates, dunning rates and much more.

Let us handle the collection and Remittance of Sales Tax and VAT

There was a time that SaaS as well as software were not exempt from many tax laws throughout the world (or just not a major source of audits). However, tax laws regarding online sales are evolving and being more strongly enforced.

Every country, state, province, territory, etc. in which you trade has its own laws regarding the amount and type of tax that must be collected and when they must be payed. There's plenty to manage.

Note:.

The majority of the time, global tax management will require a payment processing platform as well as the tax compliance software for calculating and collecting tax on sales and VAT for each transaction. Though some payment processors collect taxes for you, you'll still be responsible to pay these taxes. If you fail to pay the correct amount of tax, you could end up owing thousands of dollars in interest and penalties. The process of figuring out how you pay taxes in each jurisdiction is often very time-consuming and typically requires a team of tax experts and accountants.

In the event that your MoR has been issued We collect and pay consumption tax (including GST TVA, SST, etc.) for every transaction and file the tax returns required for your benefit.

Automatically calculates and applies the required taxes to the customer-facing cost at the time of checkout. We also support tax-exempt transactions, as well as other unique cases.

Always be in compliance with Local Laws and Regulations

Similar to taxes, every country, state or territory. additionally has their specific laws and rules for the way that recurring transactions are conducted. As an example there is a law that states it is the case that the Reserve Bank of India limits automatic recurring payments to 15,000 INR. In the event that a payment exceeds the limit, the consumer has to manually accept the transaction using another factor of authentication (AFA) like one-time password (OTP). In order to comply with the RBI regulations, you have to file an e-mandate detailing the type of AFA you will use.

This is only one example of the types of rules you must consider when you are transacting internationally.

Being up-to-date with the local regulations of each region can be a time-consuming process and costly. If you're not using the correct procedures put in place, you'll never be able collect payment. Certain payment services can help you stay on top of local rules and regulations in that they notify you when they discover the new rules or laws. However, your organization is ultimately responsible for knowing about and observing all applicable laws and regulations.

For clients, this shouldn't be an issue because, as your MoR is our responsibility, we are fully responsible in ensuring that we adhere to local regulations and laws governing transactions. Our legal team keep up-to-date on every legal aspect and makes sure that all steps are taken in making payment.

is fully compliant with the EU General Data Protection Regulation (GDPR) and also the California Consumer Privacy Act (CCPA). Additionally, we keep our level-one certification (which is the highest level achievable) by certifying to our certification under the Payment Card Industry Data Security Standard (PCI DSS) every year.

Eliminate Involuntary Churn through Automatic Retries on Payments and Customer Notifications

Involuntary churn being one major reasons subscription-based companies lose customers Many companies use systems for automatically retrying unsuccessful payments, or for notifying clients of payments that have failed. This is a great place to start, but the next step is to inform clients of payment types that are due to expire before they make the payment, and then follow up several times after a failed payment. It can require many hours of employees and energy to manage the systems.

 This is why we handle any payment problems and notices for our customers.

It sends email reminders to the cardholders whenever their card will expire, so they can change their card information prior tothe card's payment is processed. Also, it automatically retries failed transactions. If the payment continues not work, we will notify the user. You can also choose to remind them via emails two three, five, seven fourteen, and twenty-one days after their payment process does not work. In our experience, these reminders and alerts could drastically reduce the rate of voluntary churn.

In this period, your customer's service won't be disrupted. If you continue to provide the service your customer is less likely to allow the subscription end and will be more inclined to make the effort to update their information.

You can also choose to suspend rather than cancel the service in case they fail to change the payment details. This makes it easier for the customer to resume their service without having to go through the process of having to re-enter their payment information.

Make It Really Easy for customers to buy with preferred payment methods, localized transactions as well as translations.

The friction at the point of purchase can cause companies to capture smaller numbers of customers than they would have. In the case of customers who are international customers, there can be a variety of reasons for payments-related friction. As an example:

• Don't provide your customers their preferred method of payment
• The message at checkout isn't written in a language that shoppers can comprehend.
• The price doesn't appear in their local currency
• The transaction gets declined or is delayed to process

 assists you in overcoming the challenges of HTML0 by:

• Accepting many different payment methods (and managing those payment options so that transactions are quickly authorized)
• Translation of your checkout page(s) to many different languages
• Converting prices to local currencies

This is covered in greater depth in the sections below.

Preferred Payment Methods

Payment methods vary and are popular in different countries. If you don't offer forms of payments that specific customers are used to and aren't converting them to customers. This is why it's crucial to ensure that your payment system will support the various forms of payment that your customers who are in the market for are acquainted with. But, most International payment options are restricted in terms of payments they support.

In particular, certain payment providers only accept debit transactions. If your target customers are used to paying with E-wallets or credit cards (e.g., PayPal) This could be an issue.

In addition, if you wish to take payments from abroad You must also be aware of the different kinds of credit card types used across different nations. In particular, although MasterCard as well as Visa credit card are most commonly utilized in the United States, UnionPay is much more popular in China.

But, adding or managing the most popular payment options can be more difficult than adding their logo to the checkout page. Each card issuer has different tolerance levels to fraud and chargebacks. They also have different rules regarding the way transactions are conducted. If you're not complying to these rules and the network could end the process of authorizing transactions altogether.

Also, it supports the most popular debit and e-wallet payment methods including:

• ACH
• SEPA
• BACS Direct Debit Scheme
• PayPal
• Amazon Pay

Finally, card networks are more likely to accept local-processed payments when the buyer's bank and the seller's are located within the same region (for example, a buyer in Germany paying a business that is also located from Germany). We work with a variety of acquirers across the world and is always working on adding more. Since we sell on your behalf as a MoR, more of your company's transactions will be processed locally. This means that more payment are authorized.

Automated Currency Conversions and Translations for Language Translations

Customers are more likely to believe in a checkout experience that's in their native language as well as in their local currency. If you've never translated your checkout text or converted the prices into local currency it's likely that you'll lose prospective clients.

 By using this tool, you are able to transform your shopping cart's contents into different languages and automatically change the price that customers see to local currencies.

For shopping cart translations, you can:

1. Let each buyer select their preferred language from a dropdown menu.
2. It will lock the language and choose the language automatically in accordance with the purchaser's geographical location.

Additionally, you have two options to convert currency:

1. Create your own price for every country. Our team can help you determine what the fixed price should be.

If you choose to let transform the price of your products be done for you, we'll match with the standard format of the price. In this case, for example, if the starting price is $19.99 and your conversion rate to Euros would be EUR20.29 It would be changed to EUR20.99.

Create Your Own Subscriptions and manage the rest

The software provides the instruments you require to manage and create different types of recurring online payment. Here are a few examples of the types of recurring payments you can handle :

• Trial periods for free with or without collecting payment information upfront
• Subscription payments that are prorated
• Flexible billing intervals for bill payments
• The subscription is suspended
• Upgrade renewals
• Prepaid recurring billing
• A subscription is included with one-time purchase upon signing up
• Plus...

It's simple to create virtually any kind of subscription in just a couple of clicks. You can set up most subscriptions without writing code, but you can make more sophisticated subscriptions with our API or webhooks library.

All-in-One Pricing (No Hidden Fees)

A lot of payment processors cost a flat fee for each transaction and then cost extra for each additional option (e.g., access to international card networks, special subscription logic, etc.). The pricing structure of this type makes it hard to determine exactly what you'll have to pay. It can also make it hard to grow globally as your company grows since costs will increase as you need more capabilities.

 We don't add any additional cost for every features. Instead, our staff will come up with a basic, flat-rate price that gives you access to every aspect of . Pricing is based on the number of transactions that the system handles  as well as you'll only be charged for transactions that are completed.