Basics | Subotiz Overview

Payment Models and Transaction Compliance

Merchant of Record (MoR)

• Tax management: Calculates, collects, reports, and remits applicable transaction taxes, including sales tax, VAT, and GST.
• Invoice management: Generates invoices and related payment documentation based on transaction details and applicable requirements.
• Fraud and dispute management: Manages transaction risks through fraud detection, fraud prevention, and dispute prevention services. Under the MoR model, Verifi RDR and Ethoca are enabled by default, with the Refund all rule applied to automatically initiate refunds for eligible dispute alerts regardless of transaction amount, helping reduce chargeback risk.
• Transaction compliance: Assumes applicable transaction compliance responsibilities under the MoR model in accordance with relevant laws and service agreements.

Non-MoR

• Merchant entity: Merchants sell products or services to customers under their own registered business entity.
• Tax and compliance responsibilities: Merchants remain responsible for applicable transaction taxes and compliance obligations under relevant laws and service agreements.
• Payment and checkout: Merchants use supported payment services and checkout tools to process customer payments.
• Subscription and billing management: Merchants manage subscriptions, billing, and related transaction records through Subotiz.
• Dispute prevention: Verifi RDR and Ethoca are not enabled by default under the Non-MoR model but may be enabled based on merchant needs or risk management requirements. Merchants can choose the Refund all rule or configure an automatic refund amount threshold to control which eligible dispute alerts trigger automatic refunds.

Note: The availability, payment capabilities, and allocation of responsibilities under MoR and Non-MoR depend on the merchant's country or region of registration, business type, account configuration, and applicable service agreements.

Subscription and Usage-Based Billing

• Recurring subscriptions: Charge customers according to a defined billing cycle.
• One-time payments: Collect payment for a single purchase of a product or service.
• Flat rate pricing: Calculate charges based on a set unit price and purchase quantity.
• Package pricing: Set a fixed price for a package containing a specified number of product units.
• Tiered pricing: Configure pricing tiers based on quantity ranges, with support for both Volume and Graduated pricing methods.
• Usage-based billing: Track customer usage, such as API calls or token consumption, through API reporting and calculate charges based on the configured pricing rules.
• Free trials: Configure trial periods for eligible subscription pricing.

Global Payment and Checkout

• Checkout options: Use hosted checkout pages, embedded payment forms, or payment integrations for existing business systems.
• Brand customization: Customize branding elements and display content on checkout pages.
• Payment methods: Accept card payments, Apple Pay, and Google Pay, with additional payment methods available based on the merchant's region and account configuration.
• Cross-border payments: Accept payments from customers across multiple countries and regions. Supported payment methods and currencies depend on the merchant's account configuration.
• Settlement management: Access settlement information and related records according to the applicable payment services, account configuration, and settlement rules.

Subscription Lifecycle Management

• Subscription management: View subscription details, billing cycles, renewal information, and current status.
• Automatic renewals: Process recurring payments according to the subscription pricing and billing schedule.
• Subscription changes: Manage upgrades, downgrades, and cancellations according to applicable subscription rules.
• Failed payment recovery: Use Smart Retry to automatically retry eligible failed payments and Dunning rules to manage subscriptions with outstanding payments.
• Customer Portal: Allow customers to view subscriptions, manage payment methods, and access related billing information.
• Refund management: View refunds and associated transaction records for tracking and reconciliation.

Revenue Analytics

• Transaction performance: Review transaction data, refunds, and payment performance.
• Subscription metrics: Track Monthly Recurring Revenue (MRR), Average Revenue Per User (ARPU), and subscription trends.
• Customer lifecycle: Analyze subscription churn rates, renewal success rates, and trial conversion rates to support business decisions.

White-Label Billing Solution

• Brand customization: Configure platform branding, checkout pages, and customer-facing interfaces based on the partnership agreement.
• Partner management: Access a dedicated management platform to oversee relevant business operations.
• Sub-merchant management: Manage sub-merchants' products, pricing, and payment configurations according to the partnership agreement.
• Business analytics: Monitor transaction and subscription performance across partner platforms and sub-merchants.

Supported Business Use Cases

• AI agents, LLMs, and API services: Manage revenue through usage-based billing, tiered pricing, and subscription models for AI products and API services.
• SaaS products: Manage software subscription revenue through recurring billing, free trials, and automatic renewals.
• Digital content and membership services: Sell digital content, online courses, and membership benefits through one-time payments or subscriptions.
• Platform operators and SaaS resellers: Offer payment and subscription management services to partner merchants through a white-label billing solution.

Getting Started with Subotiz

Note: This is a general setup workflow. The actual setup steps may vary depending on business requirements and the payment services used. Available features, payment methods, supported currencies, and settlement schedules depend on account configuration and applicable service agreements.