Reach (Merchant of Record)
This feature is a Private Beta Release. Contact Chargebee Support to enable Reach for your Test and Live site.
Introduction
Reach is a Merchant of Record (MoR) solution designed to simplify global selling. Managing international payments, compliance, and tax handling can be complex and time-consuming. Reach takes on these responsibilities, allowing you to expand seamlessly across borders.
As the Merchant of Record, Reach:
- Handles your local transactions efficiently.
- Ensures compliance with international regulations.
- Mitigates fraud risks and manages chargebacks.
- Reduces payment failures caused by currency and banking restrictions.
How Reach Supports Your Business
Reach helps you in several key areas:
- Global Expansion: Sell internationally without the need to establish local business entities.
- Tax & Compliance Management: Reach manages your global tax obligations, ensuring accurate registration, calculation, filing, and remittance.
- Fraud Prevention: Reach takes on the risk of fraud mitigation with a dedicated team of global fraud experts.
- Optimized Payment Processing: Improve your transaction approval rates by leveraging local acquiring banks.
- Expert E-commerce Guidance: Access industry professionals who provide insights and strategies for scaling your global e-commerce operations.
Why Choose a Merchant of Record (MoR) Solution?
A Merchant of Record solution is valuable for you in various scenarios:
- Expanding into New Markets: If you're looking to sell internationally, you can rely on an MoR to handle tax, compliance, and payment challenges without setting up local offices.
- Simplifying Global Tax Management: Reach ensures seamless management of all your global tax obligations???registration, collection, filing, and remittance.
- Ensuring Regulatory Compliance: If you're in a highly regulated industry, you can reduce legal risks by outsourcing compliance management to Reach.
- Reducing Payment Failures: Localized payment processing through acquiring banks minimizes declined transactions and improves your customer conversion rates.
- Enhancing Customer Trust & Experience: Supporting local payment methods and currencies builds trust and increases successful checkouts.
Supported Payment Gateways and Methods
Reach supports multiple payment gateways and alternative payment methods (APMs) to ensure seamless global transactions. The supported options are listed below:
| Payment Gateway |
Supported Payment Methods |
| Adyen |
Cards |
| Stripe |
- Cards
- Apple/Google Pay*
- ACH Direct Debit*
- SEPA Direct Debit*
- BACS Direct Debit*
- BECS Direct Debit*
- Bank Transfer*
|
| Checkout.com |
|
| PayPal |
PayPal Wallet |
Note
Payment methods marked with an asterisk (*) are currently in the Beta stage.
Supported Taxation Provider
Reach integrates with Avalara to ensure accurate global tax compliance.
Supported Regions
Reach is available in the following regions worldwide:
- North America
- Europe
- Australia
- Asia
- Africa
How the Overall Setup Works
Integrating Chargebee with Reach allows you to use Reach's Merchant of Record services while leveraging Chargebee's billing capabilities to manage your subscriptions efficiently. This setup simplifies tax handling, compliance, and payment processing while reducing operational overhead. The integration process involves four key steps:
- Getting a Reach Account
- Configuring in Chargebee
- Onboarding Customers
- Ongoing Compliance and Management
Let's dive deep into each of these!
Getting a Reach Account
To use Reach as your MoR, you need to contact the Reach team to set up an account. Reach will assess your business profile and provision a Reach account, along with the necessary payment gateway and taxation provider accounts.
Configuring in Chargebee
After your Reach account is provisioned, you must configure it in Chargebee:
- Work with the Reach team to obtain the credentials needed to set up the payment gateway and taxation provider accounts in Chargebee.
- Complete the billing setup in Chargebee based on your business requirements.
- Configure Reach-specific settings to comply with MoR requirements. Learn more
Onboarding Customers
When a new customer subscribes under the Reach/MoR flow, Chargebee will use the Reach setup to compute taxes and process payments via the Reach-provisioned taxation and payment gateway providers.
Configuring in Chargebee
Follow these steps to configure Reach in your Chargebee site:
Setting Up Gateway Account
Follow these steps to set up the gateway account in Chargebee:
- In your Chargebee site, go to Settings > Configure Chargebee > Payment Gateways and click +Add gateway. Select the desired payment gateway and take note of the details required for configuring that payment gateway in Chargebee.
- Contact Reach to obtain the necessary credentials for configuring the payment gateway in Chargebee.
- Enter the obtained credentials in the gateway configuration page in Chargebee and complete the configuration.
- Once configured, contact Chargebee Support to tag these gateways as Reach-provisioned MOR accounts, ensuring they are not treated as standard gateway setups.
- Verify the Smart Routing settings to ensure payments are directed to the appropriate gateway based on your business requirements.
Setting Up an Avalara Account
Follow these steps to set up your Avalara account:
- Refer to the Avalara setup page to understand the details required for setting up an Avalara account in Chargebee.
- Collaborate with Reach to obtain the necessary credentials for configuring the Avalara account in Chargebee.
- Set up the Reach-provisioned Avalara account in Chargebee.
MoR-Specific Mandatory Requirements
To comply with MoR regulations, you must implement specific requirements for checkout and invoicing.
Checkout
When using Reach MoR for customer onboarding, you must display a Reach badge indicating that payments are processed through Reach.
If you use Chargebee's prebuilt interfaces (e.g., Chargebee Hosted Pages), the badge is added automatically. By default, Chargebee displays a Reach badge optimized for businesses selling digital goods in the Chargebee Hosted Pages. If you sell physical goods, a specialized badge is available. To update your badge to the one optimized for physical goods in Chargebee Hosted Pages, please contact Chargebee Support.
If you build a custom checkout using Chargebee JS, Gateway JS, or direct APIs, you must manually display the Reach badge.
Support for Chargebee Full Page Checkout is in progress and will be updated soon.
Invoices
You need to configure Reach as the seller in the invoice PDF. Contact Reach to confirm the address and entity details to be displayed as Seller.
Follow these steps to update the Organization Address:
Go to Settings > Configure Chargebee > Invoices, credit notes and quotes.
Click on Change Format under Organization Address Format.
Update the Organization Name and Address to the one obtained from Reach.
Limitations
Chargebee does not support the following currencies supported by Reach:
- Three-decimal currencies: KWD, OMR, LYD, JOD, TND, IQD, and BHD
- Other currencies: TVD, SVC, GGP, JEP, EEK, and ROL
Currently, Chargebee does not support tax calculation in Brazil via Avalara.
Frequently Asked Questions (FAQs)
- Can I use a combination of normal (non-MoR) and MoR setups for different markets?
Yes, you can use Chargebee's Multi-Business Entity capability to configure multiple payment gateways and Avalara accounts, assigning specific setups to different regions.
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