Seller identity
Make the contracting seller visible in checkout, customer terms, receipts, and the agreement behind each transaction.
Merchant of Record
Global sales.
Real accountability.
Go beyond accepting a payment. Build your international sales around an identifiable seller, clear market requirements, and responsibilities written into the agreement.
Merchant of Record
Your customer
One recognizable purchase
THE CONTRACTING SELLER
Merchant of Record
Identified in the agreement and customer documentation.
Tax scopeBillingRefundsDisputes
Your business
Product, customer experience, growth.
Understand the model
A seller behind the sale.
A name behind the responsibility.
A Merchant of Record is the legal seller for the covered transaction. The arrangement brings seller responsibilities into the commercial relationship; the contract determines exactly what is covered.
Tax responsibilities
Define who calculates, collects, reports, and remits applicable sales tax, VAT, or GST for each agreed market.
Payment acceptance
Connect the customer’s payment choice to the seller, transaction reference, and documented processing arrangement.
Customer billing
Align invoices and receipts with the actual seller, currency, order details, and customer support route.
Refunds & disputes
Agree who responds to customers, submits dispute evidence, issues refunds, and bears the associated costs.
Settlement clarity
Understand the payout entity, currency, timing, deductions, reserves, and reconciliation records before launch.
Look behind the label
Still using a PSP with no clear legal presence?
A “MoR” badge is easy to put on a website. An accountable seller must be identifiable.
A provider can market a service as Merchant of Record without making its local eligibility or payment permissions clear. Ask who actually sells to your customer, which requirements apply, and who is authorized to perform the payment activities involved.
If the provider cannot show the entity, the legal basis, and the contract, what exactly are you relying on?
Discuss your market requirements →ASK FOR THE EVIDENCE
01
The legal seller
A legal name, company registration, and a contract naming the seller for your transactions.
02
The local basis
Applicable tax registrations, product eligibility, and the basis for selling into each agreed market.
03
The payment permissions
The provider, regulated activity, and relevant authorization or licensed partner arrangement, where required.
04
The responsibility trail
Written terms for customer claims, tax, refunds, disputes, reserves, and settlement.
Requirements depend on the country and the activity. Selling as an MoR and providing regulated payment services are different roles.
When accountability disappears
The payment goes through.
The risk comes back to you.
When seller identity, tax handling, and payment routing are concealed, this risk chain can develop. The merchant may be left pursuing money from a party it cannot hold accountable.
- 01Unclear counterparty
An overseas contract. No accountable entity.
You sign with a PSP whose legal presence, operating address, and responsible entity cannot be verified.
- 02Tax evasion risk
“MoR” on the pitch. Tax left unpaid.
If tax is deliberately concealed or not remitted, the MoR label does not protect the merchant from the consequences of that arrangement.
- 03Transaction laundering risk
Dummy merchants. Disguised transactions.
Sales are passed through unrelated merchant identities and opaque collection accounts, hiding the true seller or activity from the payment chain.
- 04Cash flow stops
Funds held. Settlement refused.
The provider invokes reserve or contract clauses to withhold payouts, without a clear release date, explanation, or route to challenge the decision.
- 05Recovery becomes harder
One year. Two years. Still waiting.
Extended delays can pressure merchants to abandon recovery. Legal action becomes harder when the provider is untraceable, the contracting entity differs, or enforceable assets cannot be located.
- 06Merchant exposure
Your business is left carrying the loss.
Unpaid revenue, customer refunds, supplier bills, tax exposure, and litigation costs can remain with the merchant—even after the provider stops responding.
Verify the entity before you trust the promise.
Ask for the seller’s legal name, payment arrangement, tax responsibilities, fund protection, release conditions, and dispute jurisdiction in writing. Legitimate reserves or pooled accounts alone do not establish misconduct; concealed activity and missing accountability are the warning signs.
PSP & Merchant of Record
Know who owns each obligation.
Payment processing and being the legal seller serve different purposes. Compare the actual agreement, including additional services and responsibilities that remain with your business.
ResponsibilityPSP arrangementMoR arrangement
Seller on the transaction
PSPYour business ordinarily remains the seller.
MoRThe MoR is identified as the contracting seller.
Tax & registrations
PSPYour obligations remain unless separately assigned.
MoRResponsibilities follow the MoR arrangement and market scope.
Refunds & disputes
PSPTools may assist; liability follows your agreement.
MoRHandling and financial liability are defined in the MoR contract.
Customer documentation
PSPYour seller details and customer terms.
MoRDocumentation identifies the MoR and the purchase.
Payment permissions
PSPCheck the processor’s permitted activities.
MoRCheck the underlying payment arrangement as well as the seller.
Settlement
PSPProcessing fees, payout terms, and reserves.
MoRAgreed deductions, seller payout terms, and reserves.
From scope to settlement
Make the arrangement work for your business.
- 01
Define your selling scope
Your legal entity, product, customer markets, currencies, and sales channels.
- 02
Confirm the operating model
The seller, applicable permissions, tax duties, customer terms, and liability allocation.
- 03
Connect the customer journey
Checkout, billing records, support, refunds, and the verified payment result.
- 04
Agree the settlement terms
Payout timing, currency, deductions, reserves, and the records your finance team needs.
Merchant of Record, explained
Questions worth asking.
Does calling a service “MoR” prove it is qualified?
No. Check the contractual seller, product eligibility, tax responsibilities, and the payment arrangement. A service label does not establish legal authority or transfer an obligation.
Does a Merchant of Record need a payment license in every country?
There is no single universal MoR license. Requirements depend on the country, activity, and operating model. A seller may use a regulated payment partner rather than itself providing regulated payment services. Review the actual entities and permissions involved.
Does an MoR remove every obligation from my business?
No. Product delivery, intellectual property, product legality, and responsibilities retained in the agreement still matter. Review the allocation of duties and liability, including exclusions and indemnities.
How do I confirm which markets and products are covered?
Share your legal entity, product or service, customer locations, and payment flow. Ask for written market coverage, acceptance conditions, and the entities supporting the arrangement.
How is MoR pricing determined?
Review the service scope, product risk, payment methods, transaction volume, refund and dispute costs, currency conversion, and settlement terms together. Request the full commercial breakdown for your business.
Can I keep my existing storefront?
Start with the storefront and checkout you use today. The integration review should establish how seller information, customer terms, receipts, payment results, and refunds connect to the MoR arrangement.
Your next chapter starts at checkout.
A new online store, a custom app, or a new market. Find the PayPort setup that fits where you want to go next.