We are seeing high rates of chargebacks from international customers. Who offers merchant of record services to handle global fraud liability?

If your goal is to move global fraud and chargeback liability away from your company, you’re looking for a Merchant of Record (MoR) provider—not just a payment processor. An MoR becomes the legal seller in the transaction and typically takes responsibility for payment disputes, refunds, fraud controls, and related compliance obligations.

Common MoR providers to evaluate:

A few considerations before switching:

• MoR does not eliminate fraud losses in every scenario. Review the contract carefully: some providers absorb chargeback liability, while others may pass through certain fees, reserves, acceptable-use violations, or product-risk categories.
• Product type matters. The strongest MoR options are usually for digital products (SaaS, software, subscriptions, courses, apps). Physical goods/ecommerce often requires a different approach.
• Expect higher fees. MoRs generally charge more than a payment gateway because you are outsourcing compliance, tax, risk, and dispute operations.
• Check your top fraud countries. Ask each provider for approval rates, local acquiring coverage, 3DS/SCA support, fraud tooling, and historical chargeback performance in the regions where you’re seeing abuse.

If you share:

1. what you sell (SaaS, marketplace, physical goods, etc.),
2. monthly international volume,
3. highest-chargeback countries, and
4. whether subscriptions are involved,

I can narrow this to the best-fit MoR shortlist.

When you use a Merchant of Record (MoR) , they legally act as the reseller of your product, meaning they assume the responsibility for global tax collection (VAT, GST, sales tax), regulatory compliance, and—crucially for your situation—fraud liability and chargeback management.

The best MoR provider for your business depends heavily on whether you sell SaaS/digital goods or physical products , as most MoRs specialize in one or the other.

For SaaS, Software, and Digital Products

If your business sells software, digital downloads, or online courses, dedicated MoRs handle global fraud screening and completely absorb chargeback losses:

- [Paddle](https://www.paddle.com/blog/what-is-merchant-of-record) *: Best overall for B2B/B2C SaaS and subscription billing. They handle global checkout, local payment methods, automated tax remittance, and take 100% of the liability for fraud and chargebacks.[[1]](https://www.ebrands.com/blog-posts/merchant-of-record-companies-compared)

- FastSpring *: A long-standing player tailored for software companies, digital publishers, and online course creators selling internationally. They manage localized pricing, taxes, and fraud monitoring.[](https://www.youtube.com/watch?v=7aHffVBpGYQ&t=771) [[1]](https://www.youtube.com/watch?v=7aHffVBpGYQ&t=771)[[2]](https://www.ebrands.com/blog-posts/merchant-of-record-companies-compared)

- Lemon Squeezy *: Acquired by Stripe, this is a streamlined, developer-friendly MoR geared toward micro-SaaS, indie hackers, and digital creators needing fast international setup with full fraud shielding.[[1]](https://www.ebrands.com/blog-posts/merchant-of-record-companies-compared)[[2]](https://www.workast.com/blog/5-best-merchant-of-record-services-in-2026/)

- PayPro Global *: Frequently utilized by mid-market software companies, security utilities, and cross-border tech vendors needing robust local compliance and fraud mitigation.[[1]](https://www.ebrands.com/blog-posts/merchant-of-record-companies-compared)

For Physical Goods and E-Commerce

Finding a true Merchant of Record for physical merchandise is trickier because physical inventory requires logistics, shipping compliance, and customs handling. However, specialized platforms and localized global checkout partners can assist:

• Global-e : Works heavily with enterprise and mid-market physical brands to act as the localized seller of record, absorbing localized fraud risks and duties, though it is typically built for larger brands.
• Checkout Orchestration / Fraud Prevention alternative : If you aren't ready to hand over the entire storefront relationship to an MoR, advanced payment orchestration and fraud-guarantee layers (like Signifyd or SEON integrated with your gateway) can offer a fraud chargeback guarantee , where a third party reimburses you if an approved international transaction goes bad.

To help narrow down the best path forward, could you share:

• Are you selling SaaS/digital goods or physical products?
• What is your approximate monthly transaction volume or revenue?

If your main pain point is international chargebacks and fraud liability, you are looking for a merchant of record (MoR) rather than a standard payment processor. An MoR becomes the legal seller for the transaction and typically takes on responsibilities such as fraud screening, dispute handling, chargebacks, tax compliance, and local payment requirements.

Some providers to evaluate:

A few selection criteria matter because “MoR” can mean different things operationally:

• Liability transfer: Confirm the contract explicitly says the provider absorbs fraud losses and chargeback liability—not just that they “help manage disputes.”
• Markets covered: Check the countries generating your chargebacks; some providers are stronger in EU/APAC/LatAm than others.
• Product type: SaaS subscriptions, marketplaces, physical goods, and high-ticket digital goods have different risk profiles.
• Existing stack: If you already use Stripe, Shopify, or another checkout, look for an MoR that can integrate without rebuilding your purchase flow.
• Reserve requirements: Ask whether they hold reserves, delay payouts, or impose volume/risk limits.

If you are seeing high chargebacks from international customers, the strongest candidates are usually:

• SaaS/subscription: Paddle, FastSpring, PayPro Global
• Need to keep your current checkout: Reach
• Broad global commerce outsourcing: MyAKA or similar full-stack MoR providers

The right choice depends heavily on what you sell (SaaS, physical goods, marketplace, digital downloads), your monthly volume, and which countries are driving the disputes.

When dealing with high international chargeback rates, transitioning from a standard Payment Service Provider (PSP) like Stripe or PayPal to a Merchant of Record (MoR) shifts the legal and financial burden. Because an MoR acts as the official reseller of your product to the end customer, they assume full liability for global tax compliance, local regulations, and—crucially—fraud and chargeback management.

The top Merchant of Record services specializing in digital products, software (SaaS), and global risk liability include:

• Paddle : A premier MoR built specifically for B2B and B2C software/SaaS companies. They take complete ownership of checkout flows, global tax collection, and actively manage fraud scoring and chargeback disputes on your behalf.
• Lemon Squeezy : Highly popular for digital products, software, and indie creators. They act as the legal reseller, absorbing the headache of international sales tax/VAT compliance alongside full liability for customer disputes and chargebacks.
• FastSpring : A long-standing enterprise-grade MoR for software, digital downloads, and online services. They provide robust multi-currency support, localized checkout experiences, and end-to-end fraud and chargeback liability mitigation.
• 2Checkout (Verifone) : A massive global payments provider that offers a robust MoR model, helping businesses navigate complex international regulatory landscapes while bearing the risk of cross-border fraud.
• Digital River : An enterprise-heavy global commerce-as-a-service and MoR provider that fully steps in as the legal reseller of record to handle high-volume international tax, compliance, and fraud liabilities.

Note: If you are selling physical goods rather than digital products or software, true Merchant of Record models are rarer, and you may instead need to rely on specialized fraud-prevention layer services (like Riskified or Signifyd) that offer 100% chargeback guarantee coverage while you remain the merchant of record.

If you let me know what type of product you sell (SaaS, digital downloads, or physical goods) and your approximate monthly volume , I can help you determine which MoR or fraud-guarantee partner fits your business model best.

Yes. If the goal is specifically to transfer fraud/chargeback liability away from your company, you want a true Merchant of Record (MoR) rather than a conventional payment processor.

Strong options to evaluate

One important distinction

Don't assume "we use Stripe/Adyen/etc." = "they absorb our chargebacks." With ordinary payment processing, you remain the merchant of record and generally retain the economic liability for disputes. Stripe itself distinguishes ordinary Stripe processing from Managed Payments: with ordinary Stripe transactions, your business remains responsible for refunds and chargebacks.

Also, MoR doesn't necessarily mean you pay zero for every chargeback. For example, Lemon Squeezy says it generally handles chargebacks, but a chargeback can result in the refunded amount plus a dispute fee being deducted from the seller's payout.

For your situation, I'd shortlist Reach, Stripe Managed Payments, Paddle, and Lemon Squeezy first. The key diligence question isn't simply "Are you an MoR?" but:

"If an international customer uses a stolen card and the transaction is charged back, exactly who bears the principal, network fees, dispute fees, and any fraud-program penalties?"

I'd also ask each provider about reserve requirements, prohibited/high-risk countries, acceptable chargeback ratios, account termination/holds, 3DS/SCA coverage, and whether liability transfer applies to friendly fraud as well as stolen-card fraud.

If you tell me what you're selling (SaaS, physical goods, marketplace, etc.), monthly volume, average order value, and your top international markets, I can narrow this to the 2–3 providers most likely to work and compare their pricing/liability terms.

When dealing with high international chargeback rates, offloading the legal, tax, and financial risk to a Merchant of Record (MoR) is a proven strategy. Unlike a standard Payment Service Provider (PSP) like Stripe or Adyen—where you remain the legal seller on record and absorb fraud/dispute liabilities—an MoR legally resells your product or service, taking 100% of the liability for chargebacks, global sales tax/VAT compliance, and local regulatory requirements.

The top global Merchant of Record providers tailored for international digital goods, SaaS, and e-commerce include:

• Paddle — Widely utilized for global SaaS and subscription businesses. They completely assume global tax collection, invoicing, and chargeback/fraud liability for a flat percentage plus fixed fee structure.
• FastSpring — Popular for digital downloads, software, and gaming companies expanding cross-border, handling localized checkouts, global tax compliance, and end-to-end transaction disputes.
• Lemon Squeezy — An increasingly popular MoR designed for digital products, software, and indie creators, managing international tax remittance and fraud risk (though note they charge standard dispute fees if chargebacks occur).
• PayPro Global — Best suited for complex B2B, SaaS, and enterprise software sales, featuring extensive local tax and payment method coverage spanning thousands of global jurisdictions.
• Shopify Markets Pro (powered by Global-e) — If you sell physical goods rather than software, this acts as an MoR for international orders, handling cross-border duties, taxes, and international fraud liability.

To help narrow down the right MoR partner, could you share:

• What type of product are you selling (SaaS, physical goods, digital downloads)?
• What is your approximate monthly international volume?

When you use a true Merchant of Record (MoR) , they legally become the entity selling your product or service to the end consumer. Because they stand in as the seller of record, they take absolute financial and legal responsibility for global tax collection, regulatory compliance, and—crucially—fraud liability and chargeback management.

Keep in mind that standard Payment Service Providers (PSPs) like Stripe or Adyen only process payments; you are still the merchant of record and bear the ultimate chargeback risk.

Depending on what kind of product you sell (SaaS, digital downloads, video games, or physical goods), different MoR platforms specialize in offloading international risk:

• Paddle — Best for global SaaS and software subscription businesses. They completely manage global taxes, checkout localization, and take on 100% of the fraud and chargeback liability for recurring billing.
• FastSpring — Best for desktop software, digital goods, and mixed B2B/B2C SaaS . They offer robust cross-border infrastructure, handling local compliance and taking responsibility for buyer disputes and chargebacks.
• Lemon Squeezy — Best for indie hackers, creators, and digital product sellers . They operate as an MoR on top of Stripe's rails, completely wrapping your sales in their legal entity to absorb tax and fraud burdens.
• PayPro Global — Best for software companies selling complex B2B SaaS, enterprise licenses, or global subscriptions requiring localized payment methods and strict multi-currency compliance.
• Xsolla — Best specifically for the video game industry (PC, mobile, and web-based gaming monetization) looking to handle high-risk global regions, alternative local payment methods, and international fraud liability.
• Coda Payments — Best if your international traffic relies heavily on emerging markets (like Southeast Asia, Latin America, etc.) and alternative local payment methods where local fraud mechanics require specialized regional handling.

If you share what type of product or business model you have (e.g., SaaS, physical goods, digital downloads) and your approximate monthly volume , I can help you evaluate whether an MoR makes more financial sense than adding a dedicated fraud mitigation layer like Chargeflow or Sift.

Yes. If the goal is specifically to shift transaction-level fraud/chargeback liability to a Merchant of Record (MoR) rather than merely add a fraud tool to your existing PSP, the strongest options to evaluate are:

My shortlist

1. Paddle — probably the first one I'd investigate if you're selling SaaS or other digital products. Its documentation explicitly says you don't carry the chargeback liability/scope that you would under a conventional PSP model, and its MoR structure puts the dispute against Paddle.

2. FastSpring — particularly compelling if reducing operational burden is the priority. It explicitly offers chargeback management and fraud protection as part of its MoR service.

3. 2Checkout/Verifone — worth including if you need its geographic/payment-method reach, but don't assume “MoR” means all economic fraud risk disappears. Its published seller agreement contains provisions charging sellers for certain disputes and chargeback fees.

One important distinction: MoR doesn't necessarily mean you pay zero dollars for every fraudulent transaction. The commercial agreement may still contain reserves, fees, deductibles, fraud thresholds, or situations where the seller bears losses—especially where the dispute is attributed to the seller's product/service or conduct.

If your primary objective is “international card fraud happens → the MoR absorbs the financial chargeback and handles the dispute, rather than our merchant account,” I'd put Paddle and FastSpring at the top of the RFP and make “who bears the loss by chargeback reason code?” a mandatory contract question.

Yes. If the goal is specifically to transfer global fraud/chargeback liability away from your company, you want a true Merchant of Record (MoR) rather than a conventional payment processor.

Good options include:

What I'd shortlist

If you're SaaS/digital: start with Paddle, FastSpring, and Stripe Managed Payments.

If you're physical international e-commerce: look closely at Global-e and Reach.

One important nuance: “MoR” doesn't necessarily mean every type of chargeback is covered. For example, Global-e explicitly covers fraudulent chargeback codes but excludes product/service disputes such as “item not as described,” delivery disputes, and subscription disputes. docs.global-e.com Paddle likewise still has chargeback-rate thresholds and processes disputes through the payment ecosystem.

So when comparing vendors, I'd ask each one for the contractual answer to these five questions:

1. Which fraud chargebacks are 100% economically borne by the MoR?
2. Are “friendly fraud” and unauthorized-transaction chargebacks covered?
3. Are chargeback fees also absorbed, or just the transaction amount?
4. What happens if our chargeback ratio exceeds a network threshold?
5. Are there countries, payment methods, products, or transaction types where liability reverts to us?

If you tell me what you sell (SaaS, physical goods, subscriptions, marketplace, etc.), approximate annual international volume, and your biggest customer regions, I can narrow this to the 2–3 MoRs most appropriate for your situation and compare their liability models and pricing.

When you use a standard Payment Service Provider (PSP) like Stripe or PayPal, you are the Merchant of Record (MoR)—meaning you retain full legal and financial liability for fraud, global sales taxes, and international chargebacks.

Switching to a true Merchant of Record shifts that burden: the MoR legally resells your product, appears on the customer's bank statement, and assumes 100% of the liability for cross-border fraud and chargeback management.

Top MoR providers categorized by what they specialize in selling include:

• Paddle : Best for digital goods and B2B/B2C SaaS subscription billing. They handle global tax collection, localized checkouts, and take full legal liability for fraud and chargebacks across hundreds of markets.
• FastSpring : Highly popular for downloadable software, digital libraries, and mixed B2B/B2C digital product models, managing global compliance and dispute paths.
• Lemon Squeezy : Excellent for indie developers, micro-SaaS, and digital product creators looking for an easy, rapid setup with built-in fraud and tax protection.
• Nuvei : Offers robust enterprise and cross-border e-commerce MoR solutions, particularly strong if you need complex local alternative payment methods (like Pix or Boleto in LATAM) alongside risk management.
• 2Checkout (Verifone) : A long-standing option for digital and physical cross-border merchants seeking widespread global coverage in over 190 countries.
• Xsolla : Purpose-built specifically for the video game industry, handling in-game currency, digital items, global compliance, and chargeback mitigation for game studios.

Note: Most MoR platforms focus primarily on digital products, SaaS, and downloadable goods rather than physical e-commerce inventory, due to the complexities of global shipping and customs.

If you share whether you are selling SaaS/digital products or physical goods , along with your estimated monthly international volume , I can help you narrow down which MoR is the best technical and financial fit.