A quick journey on the pros and cons of being or not the Merchant of Record for online businesses. Explaining also the Marketplace journey without the Drama. How Braintree is able to help Startups with Technical, Financial and Business benefits.

1. !
!
Next Workshop
2:30pm:
To be or not to be,
The Merchant of Record?
George Kartakis, @gkartakis

2. To be or not to be… the
Merchant Of Record?
Dublin Web Summit 2015
@2015 Paypal Inc. All rights reserved. Confidential and proprietary.

3. To be or not to be… the
Merchant of Record?
George Kartakis – Manager of Startup Advisors
@gkartakis
@braintree_dev
@braintree
Dublin Web Summit 2015
@2015 Paypal Inc. All rights reserved. Confidential and proprietary.

6. Gather the whole !
amount of money or just
a commission?!

8. 1. Be the Merchant of Record

9. 1. Be the Merchant of Record
(1st recipient of money!)

10. Client!
Our Startup!
(Merchant of Record)!
!

11. Client!
Our Startup!
(Merchant of Record)!
!

12. Vendors!
Client!
Our Startup!
(Merchant of Record)!
!

13. • Recognize the full sale price as
revenue
PROS

14. • Recognize the full sale price as
revenue
• Greater Control of the Customer
Experience
PROS

15. • Recognize the full sale price as
revenue
• Has the full responsibility for
Customer Support/Refunds/Returns/
Complaints
• Greater Control of the Customer
Experience
CONSPROS

16. • Recognize the full sale price as
revenue
• Has the full responsibility for
Customer Support/Refunds/Returns/
Complaints
• Greater Control of the Customer
Experience
• Collects the sales taxes and files
the paperwork
PROS CONS

17. 2. Not a Merchant of Record

18. 2. Not a Merchant of Record
(Just receiving a sales fee/
commission)

19. Our Startup!Client!

20. Vendor!
(Merchant of
Record)!
Our Startup!Client!

21. Our Startup!
(Sales fee/Commission)!
Client!
Vendor!
(Merchant of
Record)!

22. Vendor!
(Merchant of
Record)!
Client!

23. • Does not have any responsibility
for Customer Support, etc.
PROS

24. • Does not have any responsibility
for Customer Support, etc.
• Easier to on-board multiple
vendors
PROS

25. • Does not have any responsibility
for Customer Support, etc.
• Only the commission fee can be
recognized as revenue
• Easier to on-board multiple
vendors
PROS CONS

26. • Does not have any responsibility
for Customer Support, etc.
• Only the commission fee can be
recognized as revenue
• Easier to on-board multiple
vendors
• Has to review the problematic
merchants to avoid losing credibility
PROS CONS

27. So, should you be the
Merchant of Record?

29. Go away man

30. It depends on your
business model

31. Merchant of Record Not a Merchant of Record
• Can manage admin cost
• Own or purchase the product
• Present high revenue quicker

32. Merchant of Record Not a Merchant of Record
• Do not want to have the
liabilities
• Do not own or purchase the product

33. The $50K boost for your business
When you sign up with Braintree, your first $50,000 in sales volume is fee-free.
No catch. It’s our way of helping launch the next wave of innovative companies.

34. Legendary customer support.
No robots. Real humans who can actually help.

36. ON
ON
OFF FUTURE
Payment Method
ON
ON
Let us worry about integrating new
payment methods. Adding them to your
checkout flow in the future will be
as easy as flipping a switch.

37. Client-side libraries for iOS, Android,
and Web. Server-side libraries in the
language of your choice.

38. We’re on Money Stage
supporting our own John Lunn
for his 3pm keynote:
Disrupting money
Join us there or on our stand
at 4pm for whiskey and beer
during Happy Hour!

39. braintreepayments.com
Thank You
George Kartakis – Manager of Startup Advisors
@gkartakis
@braintree_dev
@braintree