Merchant of Record (MoR)

A merchant of record (MoR) is the business that legally sells to the customer. Its name appears on the customer's card statement. It collects and pays sales tax and VAT, and it is liable for refunds and chargebacks. The MoR is not always the business that makes the product.

What the MoR is responsible for

• Processing the payment through its acquirer.
• Calculating, collecting, and paying sales tax and VAT everywhere it sells.
• Handling refunds and disputes, and paying the fees and losses that come with them.
• Following fraud and local consumer rules.

Global sales tax is a lot of work, so some businesses use an MoR provider. The provider resells the product, takes on these duties, and keeps a share of each sale.

MoR vs payment processor

A payment processor moves the money, but you stay the seller. You still owe the tax and handle the disputes. An MoR provider becomes the seller itself. You give up some control and margin in exchange for less tax and compliance work.

Merchant of record on Stripe

If you sell through your own Stripe account, you are usually the merchant of record and responsible for tax. Stripe Tax can calculate and collect it, but the legal duty stays with you. A Stripe Connect platform can choose whether it or each connected seller is the merchant on a payment.