What is a merchant of record? Who is legally selling to your customer
By SendPay Business · · 2 min read
- 1Your card appears in your app
- 2Tap it to pay in a shop
- 3See every payment as it happens
The merchant of record (MoR) is the business legally selling to the customer. It's the name on the customer's card statement, and it's responsible for the sale, including taxes, refunds and disputes.
What the MoR is responsible for
- Taking the payment in its own name.
- Collecting and paying sales taxes such as VAT where they apply.
- Handling refunds and chargebacks.
- Meeting consumer protection rules for the sale.
Selling directly vs using an MoR
Most businesses are their own merchant of record. Some, especially those selling software or digital goods across many countries, use a third-party MoR that resells on their behalf and handles tax in each country, usually for a higher fee.
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MoR vs payment processor
A payment processor moves the money but the business stays the seller. An MoR takes on the sale itself, along with the legal and tax duties that come with it.
Where SendPay fits
SendPay is not a merchant of record. SendPay platforms include payment links, invoicing and subscriptions under your own brand, powered by licensed partners.
How it works
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- 2Choose what it does
- 3Launch when you are ready
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
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Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.