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Passthrough vs MoC

In domestic and pickup-from-store orders Two Tap sends all the information to the supplier to be processed. That means the end supplier (let's say Kohls) processes the payment, handles returns, customer support, and is the merchant of record. The customer will see the merchant's name on their bank statement. This is what we call the pass-through method.

Alternatively, some resellers choose to become the merchant of record themselves. They change the customer's credit card via their own payment processor, generate one time use virtual credit cards, and use those to place the orders.

The are significant benefits with this approach like:

  • Supporting more payment methods.
  • Ability to offer discounts without supplier input.
  • Controlling customer support.
  • Avoiding issues with shoppers that enter bad payment information or have insufficient funds.

And drawbacks:

  • Having to go through a complicated set up process with significant initial costs with a virtual credit card provider.
  • Being responsible for customer support.
  • Having to handle fraud.

Passthrough vs MoC

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